Mobil Defends Sale Of Property

Accra Mobil Oil Ghana Limited (MOGL) today assured shareholders that the company has no plans to wind up its business in the country. MOGL's decision to sell some of its property, including the Pegasus House in Accra and the Takoradi Tank Farm, increased profits, Mr Michael George Riding, Chairman of the Board, said. "MOBIL is here to stay, sale of assets was a good economic decision, we made a lot of profit," Mr Riding told shareholders at the company's annual general meeting in Accra today. Mr Riding was reacting to questions from shareholders on the company's decision to sell some major assets including the Mobil House in Accra which was resisted by its workers. He said the Board's decision did not contravene the Company's code as was being suggested by shareholders and workers adding "we did not circumvent the code since these were not major assets". Mr Riding, who is also general manager of MOGL, said the company's operating profits increased by 59 per cent to 19.04 billion cedis, up from 8.9 billion cedis in 1995. Profit after tax boosted by sale of some properties increased by 173 per cent to 13.4 billion cedis, up from 4.9 billion cedis in 1995. Sales volume increased by five per cent over that of 1995, he said, addling that this, coupled with the increases in prices of its products, contributed to the 37 per cent increase in the company's turnover. The company's share price on the stock market started the year at

4,680 cedis per share, peaked at 7,000 cedis and ended at 5,900 cedis. "Price appreciation for our shares therefore stood at 25.6 per cent for the year under review, 11.8 per cent higher than the increase in the Ghana Stock Exchange All-Share Index". The directors recommended a final dividend of 616 cedis per share to bring the total dividend per share to 1,540 cedis.