SHAREHOLDERS of Total Nigeria Plc has commended the board for an impressive 2016 financial results and approved a dividend of N5.8 billion proposed for the financial year at the company’s 39th Annual General Meeting (AGM).
The Annual General Meeting which serves as an avenue to review the financial performance of the prior year as well as deliberate on plans recommended by the board, kicked off on a high note with commendations and propositions from the shareholders for the current year, following the receipt of the company’s 2016 annual report.
A shareholder, William Adebayo, said the 2016 account is aptly titled an account “Committed to a Sustainable future.”
According to him, the 2016 results show the board of the company is committed to making shareholders happy, especially with the introduction of other lines of business revenue through the production and sale of Awango lamps, (A solar powered lamp).
He however noted that the dwindling purchasing power of the naira makes the dividend proposed little, urging the company to declare a substantial interim dividend soon.
The National Coordinator of Independent Shareholders Association of Nigeria (ISAN), Mr Adeniyi Adebisi, was of the opinion that the highlight of the AGM for the shareholders is profit.
He said “even though we would have desired more, we are pleased with what we have got so far.
Speaking on his expectation for the year ahead, Adebisi said “The statement of the Chairman and other information gathered has shown there is no doubt that Total means well for shareholders and we cannot expect anything less than what we are experiencing now.”
Representing the Dynamic Shareholders Association, Adio A. Alex also commended the petroleum marketing and distributing company on an impressive result.
He said the 266 per cent increase in earnings per share of N43.58, however, shows that the dividend recommended could be better.
The company directors proposed a final dividend of N7 for the year ended 31 December, 2016, in addition to an interim dividend of N10 per share paid during the 2016 financial year.
This amounts to a total dividend of N17 per share compared to N12 paid in 2015.
In his address to shareholders, Chairman of Total Nigeria Plc, Mr Stanislas Mittelman, explained that on a global scale, 2016 was a year full of economic and social challenges. He said “Despite these challenges, your company’s turnover increased by 40 percent from N208 billion to N291 billion, profit after tax increased by 266 per cent from N4.05 billion to N14.8 billion while interest expense of N0.9 billion was 52 per cent lower than the previous year mainly due to a net positive cash position which has arisen as a result of our inability to source dollars.”
He disclosed that the company has plans on expanding the marketing and distribution part of the business to include an additional 25 stations, to its network of stations that currently stands at 544.
Stanislas also said the company is working on providing solar business solutions to their industrial partners as an additional and alternative source of power generation.
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