NNPCL retail made N18.4bn profit in Q1 of 2023 from OVH Energy acquisition – Mele Kyari

NNPC Retail has made N18.4 billion in the first quarter of 2023 after acquiring OVH Energy, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Malam Mele Kyari, has disclosed.

Kyari made the disclosure while addressing the House of Representatives Ad-hoc Committee on the OVH Acquisition by the NNPCL on Friday in Abuja.

He said: “We are happy with the acquisition of OVH. For instance, in 2021 before the acquisition, NNPC Retail made N6.93bn profit. But in one quarter after the acquisition; first Qtr 2023, we made a profit of N18.4bn.

“NNPCL is a creation of the federation with over 200 million Nigerians as shareholders. The Petroleum Industry Act (PIA) also grants us the mandate to guarantee national energy security. On this basis, it is duty-bound on us to increase our market share.

“Allegations against the acquisition of OVH are painful because they are not true. We believe that the only way we can grow our market share is by expanding our business. Since the acquisition of OVH, the profit margin of NNPC Retail has jumped.

“In every merger and acquisition, there is a transition period. We are rising to those challenges brought about by the transition. We are also ensuring that none of our staff at NNPC Retail is victimized. Staff are placed where they are best fit towards optimum performance.”

Persecondnews recalls that in October 2022, the NNPCL acquired Oando retail brand, OVH Energy Marketing.

OVH Energy is the owner and operator of the Oando branded retail service stations, and was merged with NNPC Retail Limited.

According to OVH Energy, the strategic move aims at creating the leading downstream energy company in Nigeria and West Africa.

The acquisition added 380 filling stations to the NNPC retail outlets nationwide which amounted to almost 1,500 retail stations at the time.

Other assets included a reception jetty with 240,000 metric tons monthly capacity, 8 liquefied petroleum gas plants, 3 lube blending plants, 3 aviation depots, and 12 warehouses.