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| LPRC Profit Swells UP -MD; Discloses More Plans |
| Published on August 25, 2006 | Email To Friend Print Version
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Liberia Petroleum Refining Corporation, (LPRC) Managing Director Harry Greaves has addressed wide range of developments at the entity including its 150 days deliverables; swell up in profit margin and the entity’s investment plans.
Addressing a news conference yesterday in Monrovia at his Sinkor resident, Mr. Greaves said the LPRC has been able to make more profit in the fist six months of this year as compare to the whole of 2005 when it was under a different management
He said as a result of the new fiscal policy in consonance with GEMAP--Governance Economic Management Assistance Program, LPRC has generated a profit of US$1.9m with a revenue of US$6.5m.
Mr. Greaves said in fact, in terms of performance, the corporation has generated a profit of US$3.4m but US$1.5m of the amount was used to pay redundancy cost for employees that were right-sized.
The Managing Director denounced media report of recent that the entity has generated up to US$15m in the first six months of this year.
He said though the entity was making profit, the report by The Monitor Newspaper was unfounded. He said LPRC’s total revenue for 12 months is half of US$15m, about US$8m. He said it was not possible for the profit of the entity in six months to be twice the revenue for 12 months.
Mr. Greaves told journalists that the purpose of his news conference was to provide the public with the right information of what is actually taking place at the LPRC.
He said when the new management took over LPRC, it listed five deliverables to be implemented in 150 days, which have all been met. He noted that the management among others outlined the rightsizing of its employees, streamlining the management, reviewing a contract signed by the previous management and the publication of its financial record, which he said would be done next week.
Mr. Greaves noted that the LPRC spent US$1.5m to pay redundant benefits to about 400 former employees. He said the package was attractive with the former employees getting at least US$4000 each. He said overstaffed LPRC with 750 employees now has an efficient staff of approximately 250.
He said I collaboration with the board, the Corporation reduced its management head from six managing directors to three along with other directors and managers. He said the team was running the corporation well, adding you don’t need six managing directors to run a corporation with a staff of 250 employees.
Greaves said the first six months of his administration has been able to transform the LPRC from a state of sick institution to a healthy one, and that the next six months would focus on investment to improve the entity.
The LPRC boss said the corporation needed to invest to make more profit, noting that there has been no investment at the LPRC for the last 30 years and that most of its equipments were lacking while those existing were in need of repairs.
He said the LPRC primary plan in the next six months is to begin repair the Oil jetty--a place where ships unload petroleum products--with support from the World Bank. He said the World Bank has already provided US$2.5m to repair the jetty.
According to him, assessment reports have disclosed that serious corrosion was eating up the pipe lines on which the jetty sits and noted that if it is not repaired now, it would collapse. He said Monrovia would stand still if this happened because; according to him, there would be no petroleum products in the country.
Mr. Greaves said the LPRC was now giving priority to the repair of the jetty and other facilities than to pay dividends.
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