RAK Unity Petroleum earns N6.7b in revenue, plans expansion

RAK Unity Petroleum Plc has reported gross revenue of N6.7 billion for the year ended March 31, 2016.
This is coming amid plans to expand the company’s operations to enhance performance, efficiency and sustainability.
Listed on the Alternative Securities Market of the Nigerian Stock Exchange, RAK Unity’s Board says it has its sights on delivering value to its customers and shareholders through cost and operational efficiency.
The Chairman of RAK Unity, Edo-Abasi Bassey Ukpong, said the company braved the slump in the sector to record Profit Before Tax of N80.8 million, noting that its management had since unveiled a growth strategy that would involve continuous investment and partnerships to deliver value to all its stakeholders.
According to Ukpong, the drop in the price of crude oil, the inability of marketers to source for foreign exchange from the Central Bank of Nigeria, the continuous fluctuations of the Naira as well as instability in the price of refined petroleum products are critical challenges that are influencing business outcomes in the sector.
He said: “In spite of these challenges, we hope to continue to support our projected retail expansion, targeting a minimum of three retail stations annually by injecting the necessary capital to drive this expansion across the six geopolitical zones of the country, whilst taking into consideration site visibility and traffic.”
Ukpong said the company’s earnings would be reinvested to ensure sustainable growth, expansion and stability of the company.
He said RAK Unity would partner with third party vendors for the importation of petroleum products as this would ensure constant availability of product at competitive price, hence boosting cash and credit sales.
The RAK Unity chair further explained that the company expects additional volumes and revenue increase from lubricant sales via retail outlet and commercial sale.
This, he said, would be achieved through increased efforts to partner with Lubricant blending plant owners for the production of branded lubricant at competitive price.
“We hope to accelerate growth in bulk sales of products by focusing on target companies in industries that are relatively inelastic to their consumption of petroleum products,” he added.
Commenting on the fluctuations in the sector, Ukpong said the company would continue to sustain its business and growth by continuously responding swiftly to unfolding trends in the sector and ensuring that it maintains a strong customer base.
He said: “With our team of vibrant staff and strategic partners, we are confident of delivering long-term value through our key pillars: Quality and Quantity Assurance; Innovative approach to meeting customers demand; Great customer service and Consistent on-time product delivery.”