JUST-IN: Our Acquisition Of OVH Energy Boosted Profitability Of NNPC Retail To N18.4bn In Three Months—-Kyari

The acquisition of OVH Energy in 2022 by the Nigerian National Petroleum Company Limited has boosted the profitability of one of its subsidiaries, NNPC Retail to N18.4bn in the first three months of this year.

The NNPCL Group Chief Executive Officer, Mele Kyari said this on Friday while addressing the House of Representatives Ad-Hoc Committee on the OVH Acquisition

The GCEO described the allegation against the acquisition of OVH as painful because they are not true.

He said the NNPCL management believes that the only way it can grow the market share of the national oil company is by expanding it’s business.

According to him, since the acquisition of OVH, the profit margin of NNPC Retail has jumped astronomically.

He said in 2021 before the acquisition, NNPC Retail made N6.93bn profit.

Kyari said, “NNPC Limited is a creation of the federation with over 200 million Nigerians as shareholders. The Petroleum Industry Act (PIA) also grants us the mandate to guarantee national energy security. On this basis, it is duty-bound on us to grow our market share.

“Allegations against the acquisition of OVH are painful because they are not true. We believe that the only way we can grow our market share is by expanding our business. Since the acquisition of OVH, the profit margin of NNPC Retail has jumped.

“We are happy with the acquisition of OVH. For instance, in 2021 before the acquisition, NNPC Retail made N6.93bn profit. But in one quarter after the acquisition (1st quarter 2023), we made a profit of N18.4bn. This is all as a result of the acquisition

“In every merger and acquisition, there is a transition period. We are rising to those challenges brought about by the transition. We are also ensuring that none of our staff at NNPC Retail is victimized. Staff are placed where they are best fit towards optimum performance.”

In his opening remarks, the House Majority Leader, Hon. Prof Julius Ihoenvbere, who represented the Speaker, said NNPCL is not a government agency anymore. But that whatever nnpclimited does attracts public attention.

The NNPC Ltd unveiled and rebranded it’s retail stations of OVH to NNPC after it announced the acquisition on Saturday, October 1, 2022.

NNPC after the acquisition became the biggest downstream company in Africa.

The assets added to NNPC through the acquisition of OVH are: reception jetty (ASPM) with 240,000MT monthly capacity, 8 LPG Plants, 3 Lubes Blending Plants, 3 Aviation Depots, and 12 warehouses.

Also, about 380 fueling stations were been added to NNPC’s existing stations making it the largest in Africa.