As part of its growth strategy, Emadeb Energy Services Limited, a
Petroleum Products Haulage and Petroleum Products Distribution Company,
has ventured into ownership of retail outlets through which it plans to
increase earnings.
The Chief Operating Officer of the company, Mrs Kike Ojo-Awosika said in a
statement that one of the twenty retail outlets, which the company
targeted to build nationwide in the next one to one and a half years
subject to the outlook in the downstream sector, would be commissioned in
Abuja on November 4 (Friday, this week).
She said the decision to build the retail outlets, the significant
percentage of which would be sited in Abuja, Lagos and some southern
cities, stemmed from “our growth strategy and the commitment to taking our
business to the next level, following the commissioning of our ultra
modern Tank Farm in February 2014.”
According to her, “Prior to now, Emadeb Energy has specialised in the
importation, storage and distribution of refined petroleum products,
particularly Premium Motor Spirit (PMS), which forms more than 60 percent
of the total import in the sector.”
She explained that ownership of retail outlets would enable the company to
enjoy economies of scale, which would, in the long run, increase
turnover/margins.
Ojo-Awosika, who sounded confident that the market is beckoning on the
company, declared that “we currently have clients across the six
geo-political zones in the country and its is important we take our
services to their doorstep,” adding, “we are, therefore, targeting about
twenty retail outlets in the next twelve to eighteen months to increase
our market share.”
She said that “the retail outlets will increase our assets base, thereby
meeting regulatory requirements for bigger transactions in the oil and gas
sector.”
“It will also increase our rating with local and international financial
institutions, thus having access to cheaper funding,” she further stated,
adding that “it will increase our market share and attract investment
opportunities from international oil and gas companies who may be willing
to partner indigenous entities.”