Independent petroleum marketer, Pinnacle Oil and Gas may take up a stake in Capital Oil Plc through a private placement. Capital Oil is listed on the tier two segment of the Nigerian Stock Exchange (NSE). The firm has no relation to the popular Capital Oil and Gas owned by Ifeanyi Ubah.
The company disclosed this in a notice issued to the exchange concerning an Extraordinary General Meeting (EGM).
Pinnacle Oil and Gas has made an offer of N0.10 per share amounting to N600,000,000. The offer if successful, would see the firm being the majority shareholder.
Capital Oil has a paid-up share capital of 16,120,000,000 shares of N0.25 each. A total of 2,473,177,300 shares have been issued.
Capital Oil Plc was incorporated in Nigeria on 29th August 1985. The Company subsequently converted to a public limited liability company (PLC) on 11th August 1989 and was listed on the Second-Tier Securities Market of the Nigerian Stock Exchange, now known as the Alternative Securities Market (ASeM).
Results for the first quarter ended March, 2018 show the company incurred a loss after tax of N13 million.
Many independent petroleum marketers have struggled in the last few years due to the current pricing regime. The current landing price of petroleum products is much higher than the instituted price.
Crude oil prices which were trading for as low as $47 are currently in the $70 region. Nigeria’s refineries are largely comatose, and cannot meet domestic demand. The Naira has also depreciated sharply against the dollar in the last few years.
The government has been reluctant to increase pump prices to prevent a political backlash as elections approach. The Nigerian National Petroleum Corporation (NNPC) is currently the country’s sole importer and has incurred losses running into trillions of Naira which it has termed underecovery.
Nigeria’s four state-owned refineries are largely comatose and are unable to meet demand. Billions of Naira spent on Turn Around Maintenance (TAM) have little or no effect.
The Yaradua administration reversed a privatisation of several refineries, upon the assumption of office.
Pinnacle Oil and Gas was founded in October, 2007. The company’s services include petroleum product distribution, tank farm facilities, haulage and marine logistics.
The company is owned by Peter N. Mbah who also doubles as its Chairman. Mbah, had a stint in government serving as Commissioner of Finance in Enugu State and as Chief of Staff.