NIPCO PLC’S 20TH ANNUAL GENERAL MEETING: REFLECTING ON A YEAR OF RESILIENCE AND GROWTH

Distinguished shareholders, esteemed representatives of regulatory agencies, distinguished guests, and respected colleagues, gentlemen of the press.

It is with profound joy and deep humility that I stand before you today to reflect on NIPCO Plc’s performance for the year ended December 31, 2024. Today’s event marks a significant milestone, being the 20th Annual General Meeting of our company, holding in the Federal Capital Territory, Abuja.

Twenty – twenty-four was remarkable in the annals of our company’s operations, marking two decades since the technical commissioning of our ultra-modern terminal in Apapa, Lagos State. The year under review was pivotal for our company as it was characterized by modest achievements across various segments of our operations. Before I proceed, I would like to express my deep appreciation to you, our valued shareholders, for your unwavering support, which has been instrumental to our growth.

REVIEW OF YEAR- 2024

The Federal Government had focused on initiatives across various sectors to drive growth, including infrastructure development, job creation and economic reforms. NIPCO as a group was able to achieve the target and maintain the trend of growth in spite of global economic turbulence in 2024, which had far-reaching implications for the energy sector. The ongoing global regional rising tensions in Eastern Europe and the Middle East contributed to economic uncertainties. The global oil and gas industry experienced significant fluctuations during the year under review largely due to some of the following:

• Technological Advancements: Innovations in exploration, production, and refining enhanced efficiency and reduced costs.
• Energy Transition: The industry navigated the transition towards cleaner and cheaper energy sources.
• Supply and Demand Imbalance: Ongoing supply chain disruptions and production cuts contributed to price volatility, affecting global markets.

NIGERIA’S HYDROCARBON INDUSTRY – 2024

The Nigerian hydrocarbon industry focused on addressing key issues of energy security, sustainable growth, and energy affordability. Stakeholders worked diligently to develop the nation’s refining capabilities, improve supply chains, and expand retail outlets across the country. The sector remained a vital component of the country’s economy, experiencing both growth and challenges.

As the course of the year we experienced:

• Increased Crude Oil Production: Nigeria’s crude oil production reached 1.5 million barrels per day (bpd) in 2024, up from 1.34 million bpd in 2023.
• Refining Capacity Expansion: Local refining capacity utilization surged, driven by the emergence of Dangote refinery that became fully functional and the Port Harcourt refinery started measured operations.
• Investment and Job Creation: The sector saw increased investment and job creation, contributing to both direct and indirect employment. Major operators collaborated with new refineries to ensure affordable and sustainable petroleum products supply.
• Naira – for – Crude transactions: The Federal Government introduced Naira-for-crude transactions to stabilize the local currency and reduce pressure on foreign exchange for refineries operating in the country. In response to these challenges, our company adapted new strategies to capitalize on emerging opportunities while creating value for our stakeholders.

OPERATING RESULTS

NIPCO PLC’s robust financial performance underscores its strategic growth in key revenue segments as we position the company for continued success in Nigeria’s downstream sector. Our resilience and effective revenue strategies have driven shareholder value.

I’m pleased to inform you that for the year ended December 31, 2024, our Company made a total turnover of N 1,458.46 billion with a profit after tax of N 11.50 billion. This represents an Earnings Per Share of N 61.26 On behalf of the Board, I am pleased to inform our shareholders that the Company has proposed to pay a final dividend of N 7 per share, representing a total payout of N 1.31 billion subject to shareholder’s approval at the Annual General Meeting. The Board of Directors has approved the retention of the sum of N 10.18 billion to strengthen its working capital.

Our unwavering commitment to sustainable business growth and strategic investments in our core business lines is driven by a singular focus on maximizing long-term value for our valued shareholders. By prioritizing targeted investments in our operations, we aim to guarantee appreciable improvement in dividend payouts and drive overall growth, ultimately enhancing shareholders return and securing the Company’s prosperous future.

LOOKING AHEAD

NIPCO PLC remains focused on enhancing profitability through diversified revenue streams across all verticals of its operations. We are committed to advancing sustainability and good corporate governance principles, fostering improved business practices. With continuous investments in staff development, we are building a culture of stellar service delivery to further position us as a driver of long-term value for our shareholders.

Twenty – twenty-four was indeed challenging, with significant global and domestic economic developments impacting business generally. However, we responded well, adapting new strategies to capitalize on emerging opportunities while creating value for our stakeholders. As Chairman of the Board, I am pleased to report that our company performed well despite headwinds in the sector.

We note the renewed vigor of President Bola Ahmed Tinubu in the Compressed Natural Gas project, which has seen about 100,000 vehicles converted to run on gas alongside fossil fuels. Our company recognized the potential of CNG more than 15 years ago, seeking Federal Government approval to establish the gas infrastructure that allowed motorists to switch to gas. That vision aligns perfectly with President Tinubu’s goal of promoting gas as a transition fuel. We strongly believe that the administration’s reforms will unlock numerous benefits to Nigeria’s economy and open a new vista for motorists to adopt Compressed Natural Gas (Auto CNG) as a cleaner alternative to conventional fossil fuels.

We will continue to upscale investments in all verticals of our operations, pursuing our vision to be the first-choice company in Nigeria’s oil and gas industry for all stakeholders.

APPRECIATION

I would like to take this opportunity to appreciate all our stakeholders who have contributed to making the year under review a successful one. We strongly believe that our strong pedigree in the downstream sector, coupled with improved performance, will propel us to greater heights in the coming year, resulting in more value addition to our esteemed stakeholders.

Thank you and God bless our Company, NIPCO PLC
Chief Dr. Bestman Paul Anekwe
Chairman, Board of Directors
NIPCO PLC