By Daniel Edu
The Nigerian National Petroleum Company Limited (NNPCL) has achieved a profit of N18.4 billion in the first quarter of 2023, less than a year after its acquisition of OVH Energy. Mele Kyari, the Group Managing Director of NNPCL, disclosed this during an investigative hearing of the House of Representatives ad-hoc committee in Abuja.
Kyari highlighted the remarkable financial growth, noting that the highest profit recorded by NNPC Retails Limited in the past five years was N6.59 billion in 2021. However, following the acquisition of OVH, the company’s Q1 2023 profit surged to N18.4 billion. He attributed this success to the company’s expansion, improved brand recognition, and increased market share.
He explained that NNPC Retail Limited was established in 2000 but struggled to grow organically until the acquisition of OVH. Before the acquisition, the company owned only 48 fuel stations and had several non-functional affiliates nationwide, which hindered its growth. Kyari emphasized the strategic importance of asset acquisition in achieving the company’s objectives and complying with the Petroleum Industry Act (PIA).
Kyari acknowledged that NNPC had been operating at a loss for many years but has now transformed into a profit-making company, declaring profits for its shareholders. He emphasized that the acquisition of OVH allowed the company to expand its portfolio and gain a 30% market share in the downstream sector, a significant achievement in the industry.
He concluded by noting that such acquisitions are rarely publicly announced by companies.