BOC Gases Plc of Nigeria has warned its competitors to desist from using its cylinder assets just as the company recorded another declining performance in its recent operations.
Dr. Michael Omolayole…
BOC Gases Plc of Nigeria has warned its competitors to desist from using its cylinder assets just as the company recorded another declining performance in its recent operations. Dr. Michael Omolayole, Chairman of BOC, gave this warning in his address to the shareholders at the 42nd Annual General Meeting of the company in Lagos, explaining that the operating environment has continued to be very hard for the company. “We shall intensify the use of legal processes to stop the illegal use of our assets.” Omolayole added that a final legal notice has been given to the competitors and distributors that were using the company“s cylinders and other assets to package other products. Despite the “fierce competition in the industry” BOC Gases announced a profit before tax of N 112.21 million, representing 31% decline from N 160.26 million recorded for its year ended September 2000. Profit after tax dropped by a similar margin from N 120.48 million in 1999 to N 88.04 million in 2000. The company declared a dividend of kobo15 per share. The company“s turnover dropped by 12% from N 671.6 million in 1999 to N 590.22 million in 2000. Omolayole attributed the declining performance to competition in the industry. “With regard to those customers who have continued to patronize competitors using our company“s cylinder assets, we have given a final legal notice to them, as well as those manufacturers who encourage our customers and distributors to bring our cylinders to them for filling. We expect them to take notice of the warning.” he said. Omolayole disclosed that the Nigerian subsidiary of the UK group was now in firm control of its destiny, following an unsuccessful take-over bid. An unsuccessful offshore attempt to take over BOC Holdings of the UK – the technical partner of BOC Gases, by the duo of Air Liquide of France and Air Products of the US, has relieved the Nigerian company of take-over worries.