Connect with us

Business

Shareholders confront Conoil over shortcomings in corporate governance

Published

on

LAGOS-Shareholders of Conoil Plc have raised concern over the shortcomings in the company’s corporate governance practices, especially the continuous absence of the chairman, Mr. Mike Adenuga, from the Annual General Meetings, AGMs.Specifically, they said that Adenuga has in the last 10 years absented himself from the AGMs, noting that his absence is detrimental to the interest and progress of the company, being the majority shareholder.

This is contained in a letter addressed to the chairman of Conoil Plc by members of Renaissance Shareholders Association, RSA, signed by their president, Amb. Olufemi Timothy.

They also criticized the company for frequent change in managing directors, MDs, saying that the company has produced more MDs than any of its peers in the petroleum marketing sector as it has in the last decade engaged not less than 10 managing directors, having an average of one MD per annum.

Querying why the company could not sign on one MD for at least a period of five years, they said that a stable management is necessary for consistent policy implementation and a steady growth.“If we may be correct, you have not been to the company’s AGM for over a decade now, (10 years).

This to us, who are concerned about your stake and that of other 26 percent holders of the equity of the company, is a disservice to the company and its business. “A leader must always be seen leading its team at all times. No report of events at the AGM to you could be as accurate as when you are present to see the feelings; hear the comments, compliments and the body language of people by yourself.

We wish that you will have a change of mind, attitude on this. Come to the next AGM wherever you know will be secure enough for you and your team, if security is your concern,” they said.

The shareholders frowned at lack of confidence shown in the affairs of the company by the directors as manifested through their lack of having shareholding in the company. According to them, only three out of the 10 directors hold interest in the company.

They also called on the company to appoint more non-executive directors, especially independent and minority shareholders into the Board, saying that having a Board of Directors consisting of five executive and five non-executive directors is against the recommendations of the Code of Corporate Governance that states that non-executives directors must be more than the executives who form the management team upon which the Board has an oversight function.

“Please, we recommend that you appoint more non-executive directors, especially, independent directors and minority shareholders’ representative.Since a few years ago that the two directors representing minority shareholders (holding 26 percent) left the Board, you have not replaced them a

Chairman Conoil Plc, Otunba Mike Adenuga Jnr

Chairman Conoil Plc, Otunba Mike Adenuga Jnr

ccordingly,” they noted.

On the account for the year ended December 31, 2013, they said that it would have been impossible for the company to achieve such a robust result without the extra-ordinary income earned from the debts owed the company by the federal government on delayed payment of subsidy on imported fuel.Consequently, they argued that the N2.77 billion dividends declared for the year would not have been possible without the extra-ordinary income and would not be sustained in the subsequent years if the management could not produce profit before tax and gross operating profit of N4.5 billion and N20billion in 2014 respectively.They said, “The accounts for 2013 year-end appear to the best in the last five years.

But can it be sustained? If the results in the statement of profit or loss on page 24 is anything to rely on, the statement of profit or loss states that our gross profit was N17 billion while other operating income of N2.5 billion was recorded, as a result of interest paid to our company from the debts owe the company by the federal government on delayed payment of subsidy on imported fuel.“What happens in a year without this kind of extra-ordinary income, payment?

We should work harder and improve on our revenue and not rely on other, extra-ordinary income (occasional).“Our actual PBT was N2.57 billion, while PAT would have been – N1.07 billion for the year 2013 end. We could not have been able to declare N2.77 billion cash dividend in the year, if not for the extra income.“We believe that; to sustain this dividend payment in the 2014 year-end results, the management must produce PBT of N4.5 billion and above without extra-ordinary income, while the gross operating profit must move up to about N20 billion.”

Vanguard-

Business

Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

Published

on

Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

Continue Reading

Business

FHC Orders NUPRC to Comply with PIA

Published

on

Continue Reading

Business

Local Firms Lead Revival of Idle Oil Wells – SPE

Published

on

Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x