11 Plc (Mobil) reported a 43.8 percent slide in revenues year on year in the second quarter (Q2) of 2020, driven by sales weaknesses in Fuels and Lubricants segments.
Revenues printed at N26.2 billion for the period, compared to N46.7 billion a year earlier.
Sales of most petroleum products were affected by the imposition of restrictive measures in key economic centres to curb the spread of coronavirus.
However, LPG sales rose by 18.4 percent to N480 million during the review period.
Gross margins improved by 96 basis points to 9.29 percent despite the revenue weakness in the quarter.
Other income also declined by 4.2 percent to N1.94 billion in the review quarter, even though earnings from the property business was flat.
Overall, after-tax profit contracted by 42.3 percent to N1.2 billion in Q2, 2020.
Mobil’s net cash balance slipped into negative territory in the period due to an N11.5 billion capital expenditure.
Notably, the company has committed a total of N28.4 billion to assets under construction since the start of the year. This expenditure may be related to plans to enter into the hospitality business.