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Conoil proposes N1bn dividend, plans N12bn depot in PH

Conoil Plc said it has proposed N1.040 billion as dividend payout to its shareholders for the financial year ending December 2009, just as it disclosed that it has embarked on strategic development projects with a view to expand its income streams and boost market share in the industry.

Going by the proposed dividend, shareholders will get N1.50 on every 50 kobo ordinary share, which translates into 50 per cent increase over what was paid in 2008.
The management, in a statement, said the company’s commitment to deliver value to investors informed the ongoing strategic investment in modern infrastructure and revamping of existing facilities across the country. The objective, it added, is to beef up its capacity in the core segment of the downstream business and boost income.
One major component of the expansion initiative is the construction of a massive depot in Port Harcourt, Rivers State, which is meant to complement its flagship depot in Apapa, Lagos.
Located near the free port zone of Onne, the ultramodern facility which costs about N12 billion, will provide easy access to fuel imports and ease the current pressure on available jetties and other port infrastructure in Lagos.
It was gathered that the complex has a storage capacity capable of holding 70,000 metric tonnes of all products namely, Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), ATK (aviation fuel), kerosene and bitumen.
The huge storage capacity, it was learnt, will enable the supply of 55 million litres of fuel per day, delivering 300 trucks on a daily basis.
As part of the strategic drive to shore up its bottom-line, Conoil has also repositioned its lubricant business, building two additional state-of-the-art oil blending plants in Apapa and another one in Port Harcourt, all of which the management said has pushed up its production capacity significantly. The company is also introducing into the market a new brand of engine oil called Okada Golden Super which is manufactured specially for 4-stroke motorcycles and tricycles.

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