After 10 years without a dividend payout to its shareholders, the management of Afroil Plc has concluded plans to declare dividends at the end of its 2009 financial year.
A statement from the company on Friday stated that the payment of dividend had become imperative following the resolution of its internal crisis and the company’s drive for profitability.
The statement added that the company had assured investors of increased return on investment as soon as the technical suspension placed on its shares by the Nigerian Stock Exchange was lifted.
The Managing Director, Afroil Plc, Mr Olakunle Sanni, while speaking at its extra-ordinary general meeting in Kano, stated that the company was no longer indebted to any commercial creditor and as such, its long-term solvency as at June 2008, had been re-established with a total shareholders’ fund of N300m and a turnover of N200m.
He noted that with the inauguration of a new board of directors, the company was well repositioned for effective competition with N4.5bn capital expenditure programme within the next three years; construction of 30 new service petrol stations, investment in lubricants blending and aviation depots.
While commending officials of the Securities and Exchange Commission and the Corporate Affairs Commission for their presence during the EGM, Sanni pointed out that the relationship between the company and the regulatory authorities would lead to a favourable impact on its shareholders.
Meanwhile the company’s shareholders at the meeting approved the resolution to consolidate its share capital of N65m divided into 235 million shares of 20 kobo each, to 130 million shares of 50 kobo each, with all shares ranking equally in rights, as contained its articles of association.
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