African Petroleum declares N9.16 million loss in year 2009 end amidst chaos


By Peter OBIORA investadvocate

Sept 30 2010 16.32 GMT


Lagos (investadvocate)-African Petroleum Plc (AP) has declared a loss of N9.16 million in its Audited Report for the period ended December 31 2009. This was contained in the Petroleum Marketing Company’s Result announced on the Floor of the Nigerian Stock Exchange (NSE) Thursday September 30 2010 in Lagos Nigeria.


To post the loss, AP, Profit/ Loss After Tax (PLAT) was N5.103 million in year 2008 compared to  N9.158 million recorded in year 2009; indicating a loss of 279.5 percent (-279.5%) in the review period.


In the same vein, Profit Before Tax (PBT) also declined by 224.8 percent (-224.8%) as the company declared N7.147 million in year 2008 compared to N8.921 million in its Audited Report for the period ended December 31 2009.


However, Turnover increased slightly by 4.4 percent (4.4%) in the review period; when AP reported a Turnover of N159.858 million in year 2009 compared  to N153.062 million in year 2008.


This is coming on the heels of numerous allegations between Femi Otedola, Executive Chairman and Clement Aviomoh, Executive Finance Director of the company.


As earlier reported, Aviomoh on Wednesday July 21 2010 addressed a Press conference titled “The Milking of African Petroleum Plc”  where he accused Otedola of milking the Petroleum Marketing Company for his private gains for about two years.

Aviomoh had affirmed that he was currently being persecuted because he refused to cook the financial records of AP as requested by Otedola.

“I also refused to allow Mr. Otedola to continue to siphon money out of AP for the benefit of himself and his other companies. AP is quoted on the Nigerian Stock Exchange and the shareholders need to know what is going on!” the ED said.


He further affirmed that in year 2009, AP made a loss of about N15 Billion, “this was due to the fact that the Chairman’s companies (Zenon Petroleum and Gas Company Limited, Platinum Fleet Limited and Fineshade Energy limited) started selling products to AP at Higher prices than normal, at times higher than the retail pump price at gas stations” Aviomoh said.

”In September 2009, the Finance Director prepared a management account where the company made a loss of N9.7 Billion. The loss was not acceptable to the chairman who brought in others to produce an alternative account that showed a profit of N957 million. They also suggested that we warehouse N15 Billion as un-reconciled
inventories and to seek board approval to amortize it over five years.

This was not acceptable to me as Finance Director because the causes of loss making were known” the ED affirmed.

He noted that before this time, he had requested that Otedola refund the N15 Billion owed the company or supply the products as this was the cause of the loss.

At the Press Conference, Aviomoh stated the reasons for the losses recorded by AP in year 2009 as follows:

1. The executive Chairman forced African Petroleum Plc to take products from his companies at prices higher than the normal.

2. The Executive Chairman forced the company to pay for products in
advance. The amount outstanding as at 31st December 2009 was N10Billion.

3. The loss on Petroleum Products Price Regulatory Authority (PPPRA)
rebate on imported products is N32 Billion because the purchase was from the Chairman instead of direct import that would have been more profitable.

4. The loss due to Chairman’s companies over loaded invoices is
approximately N4 Billion.

5. African Petroleum paid rent of N1B for the use of the Zenon house in Victoria Island.


6. Mixing up Zenon transactions with Africa petroleum PLC

a. The Chairman forced the company to use his Tank Farms for storage of African Petroleum’s products.

b. As at 31st December 2009 the differences on premium motor spirit (PMS) was 28, 347,742 litres valued at 1.9billion.



With this current trend, the question is will AP in the nearest future come back to profitability and ensure shareholders of the company enjoy returns on their investments?




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