….proposes additional capital raise to shareholders
The management of Japaul Oil and Maritime plc have stated that the decline in the pace of economic activities and weak economic fundamentals in the oil and maritime industry has continued to hamper growth in the sector, resulting in underwhelming financial performance for industry players, including Japaul Oil and Maritime Plc.
The unfavourable operating environment and other challenges notwithstanding, the board and management of the group have declared their desire to reposition the company for growth and improved performance. To this end, it stated that it would be proposing to its shareholders during the AGM in June, capital raising either by way of rights, foreign investors, private placement among others.
It stressed further that in order to achieve profitability in 2016, the company plans to restructure its operation to focus on its core competences. In this regard, some of its equipment’s either under-utilized or not functioning as a result of the business environment would be sold and the proceeds plugged back into areas of its operations with better prospects for growth.
The financial statement shows that the Company’s Revenue dropped from N10.57 billion in 2014 to N8.15 billion in 2015 operating (loss) profit stood at N3.98 billion against N897.33 million profits in 2014, administrative expenses jumped from N3.5 billion in 2014 to N6.36 billion for the year under review as a result of impairment losses of N1.62 billion and foreign exchange loss of N2.43 billion, while loss before tax stood at N7.89 billion in 2015 against the 2014 figure of N2.25 billion.
The Company however reaffirmed that it would focus in 2016 by driving improvements in its underlying asset quality, cost efficiency, enhanced revenue generation and extracting synergies across the group. It stressed that, already there are foreign investors that have indicated interest in the Company and are ready to inject millions of dollars as a result of the intricate value seen in the Company, more so that the Company has cleaned up its books for profitability.