As part of its growth strategy, Emadeb Energy Services Limited, a Petroleum Products Haulage and Petroleum Products Distribution Company, has ventured into ownership of retail outlets through which it plans to increase earnings.
The Chief Operating Officer of the company, Mrs. Kike Ojo-Awosika said in a statement that one of the 20 retail outlets, which the company targeted to build nationwide in the next one to one and a half years subject to the outlook in the downstream sector, would be commissioned in Abuja on November 4.
She said the decision to build the retail outlets, the significant percentage of which would be sited in Abuja,
Lagos and some southern cities, stemmed from “our growth strategy and the commitment to taking our business to the next level, following the commissioning of our ultra modern Tank Farm in February 2014.”
According to her, “Prior to now, Emadeb Energy has specialised in the importation, storage and distribution of refined petroleum products, particularly Premium Motor Spirit (PMS), which forms more than 60 percent of the total import in the sector.”
She explained that ownership of retail outlets would enable the company to enjoy economies of scale, which would, in the long run, increase turnover/margins.
Ojo-Awosika, who sounded confident that the market is beckoning on the company, declared that “we currently have clients across the six geo-political zones in the country and it is important we take our services to their doorstep,” adding, “we are, therefore, targeting about twenty retail outlets in the next twelve to eighteen months to increase our market share.”
She said that “the retail outlets will increase our assets base, thereby meeting regulatory requirements for bigger transactions in the oil and gas sector.”
“It will also increase our rating with local and international financial institutions, thus having access to cheaper funding,” she further stated, adding that “it will increase our market share and attract investment opportunities from international oil and gas companies who may be willing to partner indigenous entities.”