The management of Japaul Oil and Maritime Plc has decided to reposition the company for growth and improved performance given the weak economic fundamentals in the oil and maritime industry, which has continued to hamper growth in the sector.
The performance of operators in the sector, including Japaul, has been affected by the challenging operating environment. However, the company said in a statement that unfavourable operating environment and other challenges notwithstanding, the board and management of the group have declared their desire to reposition the company for growth and improved performance.
To this end, the company said it would be proposing to its shareholders during the annual general meeting (AGM) in June, capital raising exercise to inject fresh funds into its operations. The funds, according to the company, would by way of rights, foreign investors, private placement among others options.
Other than raise fresh capital, Japaul also wants to restructure its operation to focus on its core competences. In this regard, some of its equipment’s either under-utilised or not functioning as a result of the business environment would be sold and the proceeds plugged back into areas of its operations with better prospects for growth.
“The company will in 2016 drive improvements in its underlying asset quality, cost efficiency, enhanced revenue generation and extracting synergies across the group. There are foreign investors that have indicated interest in the company and are ready to inject millions of dollars as a result of the intricate value seen in the company, more so that the company has cleaned up its books,” it said.
Incorporated in 1994 as a private limited liability Japaul company commenced active business operations in 1997. The company is into marine logistics/equipment fabrication, leasing and repairs; dredging & reclamation works, downstream petroleum marketing, pipeline/flow-line constructions and repairs, mining, infrastructural development, engineering, procurement, installation and commissioning.
The company has Mr. Paul Jegede as the group managing director. And indications that the company would be repositioned came when Mr. Kayode Oluwasegun-Ojo was appointed deputy managing director last year. Prior to his appointment, Oluwasegun-Ojo worked as the managing director, Nigeria Aviation Handling Company (NAHCO) Plc. In his role as MD of NAHCO Plc, he lead the change and business diversification strategy of the company transforming it to an internationally recognised aviation services company as it became the first Ground Handling Company in West Africa to attain the prestigious ISAGO status conferred by International Air Transport Association (IATA).