@ NNs,
Some non-Nitel good news from Japaul. Hope somebody not robbing us dry here like everywhere else.
Bigger dividends please Mr Ja.
"Japaul Oil acquires N3.56b vessels, targets N14.85m daily turnover
By Moses Ebosele
TO further boost its business activities, Japaul Oil and Maritime Services Plc has acquired two new vessels, worth about N3.56 billion ($24 million).
The new investment, according to the company, is expected to lift operations and ensure a significant improvement in its bottom line this year.
A press statement made available quoted the firm's Managing Director, Mr. Paul Jegede, as saying that with the acquisition, deployment of the vessels and the recent peace in the Niger-Delta region, the company will be in a better position to reward its shareholders with improved earnings and high return on investment.
He further stated that till date, the company has acquired about 10 vessels, running into over N12 billion, adding that when fully deployed, they will ensure that the firm earns about N14.85 million ($100,000) per day.
He said: "We have invested our funds, just in line with what we passed across to investors during our public offer. We have not deviated from what our promises were on what we will do with the funds.
"We have acquired, till date, about 10 vessels, which runs into several billions- about N12 billion put together. These funds were invested in all kind of vessels, excluding dredgers, and when some of these vessels are deployed, we will be expecting, on an average, nothing less than $100,000 per day on the income that the vessels will bring in.
"Recently, we acquired two new vessels which cost us about $24 million. They have brought us a contract with the Nigerian Liquified Natural Gas for three years, and within these years, the vessels will be there and there is likelihood that the contract will be extended.
"The dredging division of the company is still handling contracts for Shell, worth over N6.68 billion ($45 million). We still have contracts with various other multinational companies, which are bringing us revenues on a continuous basis."
Jegede reiterated its resolve to boost the value of its assets, and gave hints of plans to raise additional funds from the capital market in the near future.
He added: "Our expectation in Japaul is to build up the asset of the company. The money we raised in the past is not enough for the kind of business we do. However, we believe that people must get sufficient return on their investment before we say let us move forward again.
"The whole money we raised, if we want to apply it properly, can hardly buy three meaningful vessels. It is a highly capital intensive industry, that is why you do not find too many people in it. That is why you also find too many Nigerians buying old vessels, which they can afford. Each of these vessels cost as much as $30 million and some as high as $100 million per vessel.
"Going by the capital base of banks in Nigeria, I do not think there is any of them that can finance such kind of business. So we intend to move up and there is no way, if we have to really have the full gain of the market, there is no way that we will still not come back to the market to raise more funds."
Samstone4
Alakoso...where is Pump747-800?
