Shareholders of Total Nigeria Plc have approved the payment of N4.75bn as total dividend for the 2018 financial year.
The shareholders approved the payment at the company’s 41st Annual General Meeting in Lagos.
The Chairman, Total Nigeria, Mr Stanislas Mittelman, said the company had paid an interim dividend of N3, which translated to N1.02bn, during the year.
He added that the board proposed a final dividend of N14, which translated to N4.75bn.
According to him, the company continued to experience sustained pressure on its cashflow due to the late payment of subsidies, resulting in huge financial expenses (high and unanticipated interest charges.)
Mittelman said the costs had a negative impact on the sales and affected profitability during the year.
He added that key challenges also faced during the year were security issues, delayed payment under the Petroleum Support Fund scheme, high cost of investment, reduced capital inflows and weakening crude oil prices.
Mittelman said, “We have entered into a storage arrangement in Lagos; this will allow us to capture opportunities in line with our import and logistics optimisation strategy.
“We signed a 15-year power purchase agreement with a manufacturing company in Ogun State to provide 999kWp solar hybrid solution. We would continue to strengthen our solar business to boost profit, as well as increase dividends payable to shareholders.”
Mittelman stated that 55 stations were now powered by solar energy, with a combined capacity of one megawatt, adding that it produced more than one gigawatt-hour of clean electricity.
He assured shareholders that the company would consolidate on its past achievements and deliver value to shareholders and other stakeholders.
The Chairman, Independent Shareholders Association of Nigeria, Mr Sunny Nwosu, commended the company for its consistent and improved dividend, despite the unfavourable operating environment.
He called for full deregulation of the downstream sector to boost employment rate and increased returns on investment for shareholders.