Japaul Oil & Maritime Services Plc will acquire six more vessels between now and 2014 to boost its income earning capacity and deliver high returns to shareholders, the company’s chairman, Major General Joshua Omosebi (rtd) has said.
Omosebi told shareholders of the company recently that the vessels would have a combined earning capability of $150,000 per day, which would boost its existing income stream.
“The operating environment is so good that if we have 50 vessels today, the market will absorb them because the Nigerian content policy has created an enabling environment for all local maritime companies to do well. It is evident therefore that there is no limit to our growth despite all the challenges we have been facing,” he said.
Reviewing the performance of the company for the year-ended December 31, 2012, the chairman noted that while the turnover had increased and raised hopes of improved bottom-line its net profit was adversely affected by higher-than-expected depreciation and financing expenses.
According to him, Japaul acquired some new vessels towards the end of 2012 and decided to charge depreciation on them in order to readjust the company’s depreciation to a more ideal position, a situation that increased depreciation on profit to about N2.1 billion, N1.56 billion above the rate for previous year.
He explained the company also paid high amount of interest because of the bank loans used to purchase some of the vessels last year.
He, however, reassured shareholders on the prospects of the company, noting that Japaul had garnered huge demand and contracts that would propel its growth in the years ahead.
The company ended 2012 with a turnover of N12.28 billion, up from N10.25 billion in 2011. Gross profit rose from N4.72 billion to N4.999 billion, while profit before tax dropped from N1.45 billion to N532.71 million. Similarly, profit after tax declined from N980.44 million to N283.73 million. Earnings per share dropped from 15.66 kobo to 4.53 kobo.
Information from This Day was used in this report.