• NDEP wholly operates a mini refinery at Ogbele with a current slated capacity of 1,000bpd generating revenues of US1m per month. The company was the first private refinery in Nigeria to receive an operating licence by the Federal Government and has the sole right to sell surplus diesel fuel to the local market.

    The refinery is not complex, however, it does produce a range of refined products including diesel, kerosene and marine diesel.

  • topping-plant-2

  • The company is planning, as part of a two – five year plan to expand capacity fivefold to 5,000bpd which, if we assumed a 60% operational efficiency rate, equates to revenues greater than US$3m per month, or US$36m per annum. This would require capex of US12m to achieve, with a payback of around 6 months.

    We have valued the refinery using EV/EBITDA multiples which assume a 50% EBITDA margin on revenues, 30% corporate tax rate and a 6x EV/EBITDA multiple which is typical for a global refinery, to arrive at our NAV value of US$32m.