Okitipupa Oil Palm holds AGM, to pay dividend after 27 years

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Okitipupa Oil Palm

In what could be described as good news to the public and this once-moribund Company, Okitipupa Oil Palm Plc has announced Tuesday, 22nd June 2021 as a date for her 19th – 30th & 31st Annual General Meetings.

Chief Mobolaji Osomo, Chairman of the Board of Directors disclosed that the company had returned to significant profitability and had wiped out consistent losses of past years.

The Managing Director, Okitipupa Oil Palm Plc, Mr Tunde 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.

Okitipupa Oil Palm

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.

He said the company has embarked on some measures aimed at re-strategising and putting the company on a solid footing to enable it to 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.

Okitipupa Oil Palm

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.

Chairman, Okitipupa Oil Palm Plc, Chief Alice Osomo said in 2019, the company recorded a turnover of N281 million compared to N272 million in 2018, 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 a 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 greenfield, 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 the 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 stated that 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.