By Daniel Essiet (The Nation @ https://thenationonlineng.net/)
After nearly three decades of instability and near liquidation, Okitipupa Oil Palm Plc has returned to profitability as the company continues to implement its recovery plan.
At its Annual General Meeting (AGM), which was held via virtual in line with COVID-19 protocols, the Board of the company said more than N700 million had been spent on balance sheet restructuring to clear outstanding debts, while pursuing an ambitious plan to put the company on the path of profitability.
The Chief Executive Officer, Okitipupa Oil Palm Plc, Mr Taiwo Adewole said the company has been working assiduously to substantially liquidate most of its indebtedness.
He said the company was on the way to being a key player in the agribusiness sector.
After 27 years of struggling, he announced that the company was going to pay dividends to stakeholders.
He said the company has embarked on some measures aimed at re-strategising and putting the company on a solid footing to enable it respond effectively to emerging challenges and return to its past leading role in the industry.
He said the company was working with partners to run its plantations, as well as meet other critical business needs, adding that the investment demonstrated confidence in the local economy and the future of the sector.
He noted that there is great potential for Nigeria in the palm oil sector, adding that the company was ready to demonstrate to the rest of the world that palm oil can be grown competitively.
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Chairman, Okitipupa Oil Palm Plc, Chief Alice Osomo said in 2019, the company recorded a turnover of N281 million compared to N272 million in 2081, a marginal seven per cent increase in revenue.
In the same period, she said the company made a profit-after tax of N3.5 million in 2019 against a loss of N68 million in 2018.
According to her, the company has been through several experiences that had created so much instability in the company.
She noted that the company is looking at full resuscitation plan in five redevelopment phases. These include full plantation repossession and rehabilitation phase, development of its existing 5,800 hectares of a new green field, replanting of 9,000 of brownfield, upgrading of its 40 metric tonnes per hour mill at the company’s headquarters and the 4.5 metric tonnes per hour mill at Ipoke as well as development of refining capacities.
She commended Ondo State Governor, Oluwarotimi Akeredolu for the assistance that has helped to take the company out of the wood.
She said the state government has established a security task force to secure the plantations.
Okitipupa Oil Palm was established in 1968 and was served by oil palm estates scattered across the three local governments of Okitipupa, Irele and Ese-Odo in Ondo.
