Dipo Olowookere
By Dipo Olowookere
Chairman of Okomu Oil Plc, Mr Gbenga Oyebode, has disclosed that some of the developments to be achieved this year by the firm are the refurbishment of its oil mill and the rubber factory effluent ponds.
Mr Oyebode made this known at the 37th Annual General Meeting (AGM) of the company held last Friday in Abuja.
Updating shareholders of Okomu Oil on its achievements last year, the Chairman also said there would be planting of a further 4,000ha in Extension 2 this year as well as the expansion of the banga production facilities at the oil mill to meet increased demand of the product.
Mr Oyebode said the firm was able to perform well in 2016 as a result of “the devaluation of the Naira after June and ongoing cost cutting measures by management, both which are becoming increasingly difficult to manage or curtail.”
“Runaway costs and high inflationary pressures through our raw material supply chain have become a norm and are of serious concern going forward.
“Cash flows at year end of N3.2 billion, up from N905 million in 2015, will continue to assist in the funding of developments, such as the planting of a further 4,000ha in Extension 2 and the expansion of the banga production facilities at the oil mill to meet increased demand of the product and the refurbishment of our oil mill and rubber factory effluent ponds, amongst others in 2017,” the Chairman said.
He noted last year, Okomu Oil produced and processed a new record tonnage of 169,898t of fresh fruiting bunches (FFB), up 5 percent on 2015 tonnages, thereby surpassing last year’s record.
He added that the company planted the first 4,000ha of palm in the new Extension 2; it received its Environmental Impact Assessment (EIA) certificate from the Federal Ministry of Environment for Extension 2; it had its ISO9001 and ISO14001 certifications for quality and environment renewed whilst also obtaining a new certification through OHSAS 18001 for safety in the workplace.
“The company also reported a profit on continuing operations after tax of N4.9 billion, even under the prevailing challenging business conditions, which propelled it into one of the top 10 companies with the highest turnover on the Nigerian Stock Exchange (NSE) in 2016,” Mr Oyebode told the shareholders, who listened with rapt attention.
Okomu Oil Palm Company, established in 1976 as a Federal Government pilot project, is located at Okumu-Udo, Ovia West Local Government Area of Edo State. It was founded to boost palm production in the country.
