The Nation Newspaper

Category: Equities

  • Shareholders laud CCNN over improved performance

    Shareholders of Cement Company of Northern Nigeria (CCNN) Plc yesterday approved distribution of a dividend per share of 70 kobo for the immediate past year amidst commendations for the improved performance of the cement-manufacturing company.

    At the annual general meeting yesterday, shareholders commended the board and management of CCNN for improving the profitability of the company in spite of operating and environment challenges.

    Shareholders also urge the directors of the company to recapitalize the company with more equity funds, assuring that they would fully support the company’s expansion by injecting additional equity funds.

    National coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the dividend of 70 kobo underlined the recovery of the company.

    He noted that with the performance of the company so far, the board and management have earned the confidence of shareholders.

    He urged the directors of the company to ride on the waves of the improved investors’ confidence to raise new equity funds by floating a rights issue.

    Another shareholders; Mr. Nonah Awoh, said the company needs to raise additional equity funds to ensure that the gains of its stable business growth and expansion get to the shareholders.

    “We need to do something about recapitalisation, through a means like rights issue. The board should look at how quickly the company can come to the market in order to reduce dependence on debt,” Awoh said.

    National coordinator, Pragmatic Shareholders Association, Mrs Bisi Bakare, commended the growths in the sales and profit of the company.

    According to her, the performance of the company would be better appreciated in the light of the security challenges and risks in the Northern region, where it has its main market.

    National coordinator, Shareholders United Front (SUF), Mr. Gbenga Idowu, applauded the company’s investors’ relation and shareholders’ management.

    Speaking at the meeting, chairman, Cement Company of Northern Nigeria Plc, Alhaji Abdulsamad Rabiu, assured shareholders on the prospects of the company as the board has already started measures to enhance its competitiveness in the cement market.

    According to him, the company successfully reintroduced biomass as a supplementary kiln fuel in 2013, which has helped it to control its energy costs.

    He added that the planned project to increase the company’s production capacity and converting existing production line to solid fuels like coal has already commenced.

    He said the issue of cement upgrade from 32.5 grade to 42.5 grade will not have any pronounced negative impact on the company as it has already started producing 42.5 grade.

    Rabiu however noted that conversion to 42.5 grade will reduce production volume and profit of cement companies.

    He assured shareholders that the company would sustain its dividend payment while continuing to work to increase shareholders’ returns.

    Audited and emerging earnings reports of CCNN indicated significant improvements in actual and underlying returns of the cement-manufacturing company. Audited report and accounts of CCNN for the year ended December 31, 2013 showed that a more efficient cost management and appreciable growth in sales underpinned substantial growth in profit and returns to shareholders. Gross and pre-tax profit margins improved from 28.1 per cent and 10.9 per cent in 2012 to 31.8 per cent and 12.5 per cent respectively in 2013.

    With 19 per cent increase in profit after tax, the company has earmarked N880 million as cash dividends to shareholders for the 2013 business. While sales had grown by 4.4 per cent, declines in cost of sales and finance expenses as well as containment of the operating expenses impacted positively on the bottom-line.

    Besides, the report also showed considerable improvements in financing structure and liquidity, providing a positive balance sheet support that enabled top-line performance to trickle down into substantial earnings to shareholders. The company halved its gearing ratio and further increased equity funding just as liquidity improved to a new high.

    The profit outlook of the company improved appreciably during the year with both actual and underlying profitability ratios showing corresponding performance. Underlying profitability indices showed a generally positive outlook. Gross profit margin improved from 28.1 per cent in 2012 to 31.8 per cent in 2013. Average pre-tax profit per every unit of sales increased from about 10.9 per cent to 12.5 per cent. Return on total assets improved from 11.6 per cent to 13.1 per cent. Return on equity was steady at 15.7 per cent.

    The underlying performance reflected the improvements in the operations and productivity of the company as well as increase in its cost management. Total sales reached a new high at N15.8 billion in 2013 compared with N15 billion in 2012. Cost of sales meanwhile slipped marginally from N10.88 billion to N10.77 billion. Gross profit thus rose by 18 per cent from N4.24 billion to N5.02 billion. Operating expense was curtailed at N3.64 billion in 2013 as against N3.40 billion in 2012. While non-core business income dropped by 22 per cent from N958 million to N743 million, the reduction in interest expenses counterbalanced the negative effect. Finance expenses dropped to N147 million as against N152.

    With all these, profit before tax rose by 19.2 per cent to N1.97 billion in 2013 as against N1.65 billion in 2012. Profit after tax also grew by 19.1 per cent to N1.42 billion compared with N1.20 billion in the previous year. Basic earnings per share thus improved from 95 kobo to N1.13. The board of the company has recommended distribution of N880 million as cash dividends, implying a dividend per share of 70 kobo. It did not pay any dividend in the previous year. The dividend outlook remained substantially high with a dividend cover of 1.61 times.

    Also, emerging earnings reports for the current business year have shown a stronger upward growth trajectory. Interim report and accounts of CCNN for the six-month period ended June 30, 2014 showed that sales rose by seven per cent in first half 2014 to N9.39 billion as against N8.81 billion recorded in corresponding period of 2013. Profit before tax almost doubled from N1.22 billion to N2.34 billion. Profit after tax showed similar performance, rising from N832.1 million in first half 2013 to N1.59 billion in first half 2014.

  • Conoil grows profit by 298% to N4.6b

    Conoil grows profit by 298% to N4.6b

    Conoil Plc recorded impressive bottom-line in the immediate past year as the petroleum-marketing company rode on the back of improved cost efficiency and significant reduction in interest expense to grow its pre-tax profit by 298 per cent.

    Key extracts of the audited report and accounts of Conoil Plc for the year ended December 31, 2013 showed that the company’s average profit in 2013 was nearly four times more than the previous year. Average pre-tax profit margin leapt to 2.87 per cent in 2013 as against 0.77 per cent in 2012.

    While turnover recorded modest growth of 6.4 per cent, a strong hold on cost of sales and 46 per cent reduction in finance expense underpinned strong bottom-line performance. After taxes, net profit and earnings per share rose by 329 per cent and 330 per cent respectively.

    With the significant improvement in the bottom-line, the board of directors of the company has recommended increase in cash dividends to shareholders by 300.6 per cent to N2.78 billion. A breakdown of the dividend recommendation implies that shareholders would receive a dividend per share of N4, representing an increase of 300.6 per cent on N1 paid for the 2012 business year. Conoil had distributed N693.95 million as gross dividend for the 2012 business year.

    The current dividend would be paid to shareholders on the register of the company as at August 25, 2014. Shareholders of the company are expected to approve the dividend payment at the annual general meeting on September 26, 2014, in Uyo, Akwa Ibom. The dividend would subsequently be posted to shareholders on October 6, 2014.

    The audited report showed that turnover rose from N149.99 billion in 2012 to N159.54 billion in 2013. Gross profit rose slightly to N17.04 billion in 2013 as against N16.16 billion in 2012. As finance cost halved from N4.17 billion to N2.25 billion, profit before tax jumped from N1.15 billion in 2012 to N4.58 billion in 2013. After taxes, net profit leapt to N3.07 billion as against N714.98 million. Earnings per share thus quadrupled to N4.42 in 2013 compared with N1.03 in 2012.

    Management of Conoil have said they expected to continue to drive the performance of the company with revenue increase from its nationwide retail outlets, especially newly commissioned mega stations. Performance was also expected to be augmented by additional income streams from new lubricant products as well as expected increase in probable revenue from the fully-deregulated lubricant business.

    With its new production plant in Port Harcourt, Conoil plans to step up engine oil exports to West African markets as well as enter into joint venture partnerships with leading car manufacturing companies for the use of Conoil lubricants in their vehicle engines.  It also expects additional incomes from ancillary services including marketing of Low Pour Fuel Oil (LPFO) and Bitumen, which were reactivated in the first half of 2013 and were expected to boost sales as from the second half.

    At the company’s last meeting with shareholders, chairman, Conoil Plc, Dr. Mike Adenuga, assured that the company has a robust growth strategy that places emphasis on continued investments and delivery and expansion of quality products and services.

    According to him, the future outlook of the company remains bright as it has built stronger financial position and facilities that will create enduring value for shareholders.

    “We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever growing customers, with total commitment to excellent service delivery. We firmly believe that such a robust strategy will ensure continued growth and stronger position in our core markets”, Adenuga said.

    He outlined that the company’s strategy is to provide quality products and services that will make customers want to patronize its fuel and non-fuel products adding that the company would continue its aggressive acquisition and expansion drive that aims at increasing, substantially, the number of its retails outlets nationwide.

    Adenuga noted that as part of the strategy to shore up the bottom-line, the company has strengthened and consolidated its leadership position in the aviation business with investment in the acquisition of new world-class equipment to meet the demands, on real time basis, of the company’s ever-growing local and international clientele.

    According to him, Conoil’s future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability, despite the unpredictability of the economic environment.

  • Easykobo.com starts new stock market competition

    Easykobo.com starts new stock market competition

    Easykobo.com, an online stock market game, has started the new season of its exclusive Nigerian stock trials.

    Chief executive, Easykobo.com, Arjun Markanda, said the online gaming competition is a free way for prospective investors to try investing in companies quoted on the Nigerian Stock Exchange without the element of risk.

    He said the stock trials season four will conclude on Friday, January 30 2015, giving participants a five -month period to prove themselves.

    “The season 3 lasted under two months which was the shortest so we are going back to the longer format which is usually the tougher competition because players cannot benefit from just a couple of good stock picks they have to make good picks again and again to be among the top players,” Markanda stated.

    He explained that Easykobo stock trials is a way for investors to try stocks before buying stocks noting that investors have to buy before 2:30pm for their trades to be executed on the day, otherwise the orders will be pushed to the next trading day and will be executed at the closing price.

    “As you can see you cannot just cheat in this stock trials because it has an element of making you take your time. People who emerge as top players really get there by know a lot about stocks they are buying. While there will be prizes at the end of the season 4 that is not really what drives people to try stocks before buying stocks,” Markanda said.

     

  • Transcorp targets $1b profit as new CEO takes over

    Transcorp targets $1b profit as new CEO takes over

    The Board of Directors of Transnational Corporation of Nigeria (Transcorp) Plc yesterday appointed Mr. Emmanuel Nnorom as the president and chief executive officer of the conglomerate with a mandate to push the conglomerate’s profit to $1 billion by 2018.

    Nnorom, who was until his appointment the president and chief operating officer of Heirs Holdings, will formally take office on September 1, 2014. He will be succeeding Mr. Obinna Ufudo, who led the conglomerate since 2011.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the change was meant to further consolidate the growth of the company noting that the outgoing chief executive had laid a good foundation by delivering on the corporate objectives under the phase one of the corporate transformation.

    “In his three years as CEO of the Transcorp Group, Obinna Ufudo laid a strong foundation of good governance, achieved significant financial returns for the company and played a key role in transforming an ailing enterprise, into an emerging investment powerhouse, with a market capitalisation of over US$1.2bn.  He will be handing over a transformed business to Emmanuel Nnorom. With the implementation of Phase 2 of our strategic intent, we expect accelerated growth in all spheres of our business, with a clear objective of $1 billion in profits by 2018,” Elumelu stated.

    According to him, the appointment represents a further important milestone in Transcorp’s transformation, as the company moves from stabilisation; following the acquisition of a strategic stake by Heirs Holdings, to accelerated growth, as investments in power, oil and gas and real estate and hospitality come to fruition.

    He pointed out that Nnorom’s key role will be to lead the acceleration and deepening of the company’s investments in its four strategic business sectors-hospitality, power, agriculture and oil and gas to build on his predecessor’s achievements in repositioning Transcorp for growth.

    Nnorom is currently president and chief operating officer of Heirs Holdings, the investment holding company of Elumelu. He had served as executive director of United Bank for Africa (UBA)Plc.

  • Capital market regulators to sanction companies over delayed dividends

    Capital market regulators to sanction companies over delayed dividends

    Capital market regulators may sanction companies that fail to pay approved dividends within the timeline stipulated by the shareholders at their general meeting and the extant rules of the capital market.

    In what many saw as last warning by the regulators, the Nigerian Stock Exchange (NSE) yesterday said that it would not hesitate to impose sanction on any company that fails to pay dividends within the timeline specified in the resolution passed by the shareholders at the annual general meeting.

    Head, Legal and Regulation, Nigerian Stock Exchange (NSE), Ms. Tinuade Awe, said the erring companies would be made to pay 5.0 per cent of the gross dividend as sanction for delayed payment of dividend in line with the existing rules and regulations of the Exchange.

    According to her, the 5.0 per cent is already a subsisting sanction under the general undertaking signed on to by every quoted company and issuer, which also included commitments to notify the Exchange prior to taking certain corporate actions; to seek the Exchange’s approval before publishing certain information; to comply with the Exchange’s listings rules and to comply with the directives of its shareholders in the event of declaration of dividends.

    “These obligations kick in once an issuer executes the general undertaking. They are obligations of long standing, which remain binding for as long as an issuer is listed on the Exchange,” Tinuade said.

    Head, Listings Regulation, Nigerian Stock Exchange (NSE), Mrs Josephine Igbinosun, outlined that the NSE would penalize the companies to serve as deterrent to companies and to enhance market integrity.

    According to her, by imposing the 5.0 per cent sanction set forth in rules in the event of a breach regarding the payment of dividends as directed by shareholders, the Exchange is enforcing the payment of dividends to shareholders, in line with their resolution to receive same on a specific date.

    She added that existing rules of the Securities and Exchange Commission (SEC) also empowered the apex capital market regulator to sanction companies if they fail to pay dividends declared to shareholders after seven working days after the annual general meeting (AGM) at which the dividend was declared.

    “Finally, in order to avoid engaging in conducts prohibited by the listings rules, the Exchange encourages all issuers to enhance their internal systems and controls; and improve their awareness of the listings rules and their obligations thereunder. Moreover, the Exchange strongly advises against shareholder apathy and encourages shareholders to educate themselves on the provisions of the listings rules,” Igbinosun said.

  • New IFRS provisions will improve financial reporting, says Standard & Poor’s

    Standard & Poor’s (S & P) Ratings Services has threw its weight behind new provisions aimed at enhancing disclosures under the International Financial Reporting Standards (IFRS).

    The global rating agency stated that the current financial reporting does not give financial-statement users sufficient insight about the financial performance, financial position, cash flow prospects, and risk exposures of a company.

    According to S & P, the proposed amendments in the exposure draft to the IFRS are a helpful, short-term step in enhancing transparency, consistency, and comparability in financial reporting.

    Specifically, the exposure draft’s proposed amendments clarifying the importance of applying an appropriate level of materiality and disaggregation in financial statements will help toward emphasizing to preparers the importance of preparing financial statements that are useful and relevant to investors, rather than excessively focusing on preparing financial statements as a compliance exercise.

    “While we broadly welcome the proposals in the exposure draft, we believe a comprehensive, uniformly applied disclosure framework is ever more important to analysis of financial reports. We believe a disclosure framework that promotes a tiered disclosure regime could be helpful to analysis,” S & P stated.

    The rating agency outlined that such a regime could consist of three tiers of disclosure including a disclosure set principally composed of roll-forwards and tabular disclosures; disclosures based on existing IFRS; and disclosures that go beyond those set out in Tiers 1 and 2 that companies provide based on relevance and materiality, for financial statement users to properly understand the financial performance, financial position, cash flow prospects, and risks of the company.

    It urged the IASB to develop such a disclosure framework in tandem with the United States Financial Accounting Standards Board (FASB) noting that a joint approach would enhance further convergence between IFRS and US generally accepted accounting principles (US GAAP).

    “Because we rate companies globally, comparability in accounting and financial reporting is important to our peer and trend analysis,” it pointed out.

  • Forte Oil grows pre-tax profit by 152% in six months

    Forte Oil Plc more than doubled its profit in the first half as the energy group continued to drive sales with aggressive consumer marketing and networking.

    Interim report and accounts of Forte Oil for the first half ended June 30, 2014 released at the weekend showed that turnover rose by 33 per cent while pre and post tax profits jumped by 152 per cent and 125 per cent respectively.

    Key extracts of the report showed that profit before tax leapt by 152 per cent to N4.19 billion in first half 2014 compared with N1.66 billion recorded in corresponding period of 2013. Profit after tax also rose by 125 per cent from N1.39 billion in first half of 2013 to N3.13 billion in first half 2014.

    Turnover rose to N79.61 billion compared with N59.96 billion recorded in the same period in 2013. Gross profit rose by 57 per cent from N5.73 billion to N9.0 billion while operating profit doubled by 128 per cent from N1.98 billion in first half 2013 to N4.53 billion in first half 2014. Earnings per share stood at N1.91 in first half 2014 as against N1.29 in first half 2013.

    Group chief executive officer, Forte Oil, Mr. Akin Akinfemiwa said the first half performance showed the resilience of the group’s businesses and a true test of its business transformation strategy despite the adverse impact of petroleum product scarcity experienced in the first quarter of the year.

    “We are very pleased with our audited half-year results for 2014, which exhibits consistent and sustainable growth for both revenue and profits,” Akinfemiwa said.

    According to him, the company benefitted from superior contributions from its power and upstream services divisions, which have continued to strengthen its market dominance as it strives to be the foremost energy solutions provider.

    “As we enter the final phase of our business transformation we are confident of building a long term successful company and making Forte Oil Plc the investment of choice through positive actions that boost investor confidence at all times,” Akinfemiwa said.

    He outlined that the company during the period successfully launch its newly repackaged lubricants while it also engaged in aggressive consumer activities to boost market share.

    According to him, the company continued expansion of its retail network at strategic locations to improve market dominance in addition to aggressive growth and expansion of its industrial and commercial customer base to meet its objective of being the supplier of choice.

    He added that strong performance from Geregu Power Plant also contributed to the company’s performance.

    Group chief financial officer, Forte Oil Plc, Julius Omodayo-Owotuga noted that the 152 per cent growth in profitability in the third year of transformation is a clear indication that the milestones set in the restructure programme are being met earlier than envisaged.

    “Revenue increased by 33 per cent from a growing number of retail outlets and improved commercial customer base, while keeping our costs; distribution, administrative, and finance low. The result is an indication that we are operating efficiently and are focused on our vision of being the foremost energy solutions provider,” Omodayo-Owotuga said.

  • Stanbic IBTC highlights benefits of mutual funds

    Chief executive officer, Stanbic IBTC Asset Management Limited, Mr. Olumide Oyetan, has advised retail investors to put their money in collective investment schemes, otherwise known as mutual funds, in order to safeguard their returns.

    Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings Plc, will today launch a nationwide multi-media investor education campaign to improve penetration and awareness of mutual funds. The campaign is specifically aimed at publicizing the unique benefits of mutual funds, while demystifying the erroneous impression that mutual funds are only meant for the wealthy.

    Oyetan said there were numerous benefits associated with investing in mutual funds including the advantage of professional management of investors’ money.

    He noted that Stanbic IBTC’s experience and expertise are based on in-depth research that identifies unique opportunities designed to deliver on reasonable and consistent superior returns without taking undue risk.

    According to him, the concept of buying mutual funds allows investors to sit back, relax and outsource the management of their money to professional portfolio managers. The portfolio managers or fund managers then channel the money into investments in the appropriate assets class selected by the investor based on their investment objective, time horizon and tolerance of risk.

    He explained that mutual funds are similar to the way a co-operative schemes or the local thrift clubs, Esusu, Adashe or Ajo system are operated as many people pool their money together and invest the pool in purely or a combination of money market, equities, bonds or other assets.

    “With an initial minimum investment amount of N50,000, you derive the benefit of pooling other investors money to attract the most competitive interest rates available on sums in excess of N100 million that was hereto only available to big investors or institutions like if it was N500 million therefore achieve higher returns ordinarily available only to “institutional” investors,” Oyetan said

    He noted that as an industry leader, Stanbic IBTC Asset Management has a responsibility to help enhance awareness about mutual funds so as to enable Nigerians benefit from the opportunities derivable from investing in such instruments.

    He pointed out that Stanbic IBTC’s expertise and experience in asset and wealth management as well as corporate and investment banking garnered over many years, in addition to Standard Bank’s rich heritage, are pivotal in guiding investment decisions thereby ensuring that investors derive value from their investments.

    Mutual funds currently managed by Stanbic IBTC Asset Management include  Stanbic IBTC Nigerian Equity Fund; its flagship fund, Stanbic IBTC Ethical Fund; Nigeria’s first socially responsible quoted mutual fund which allows subscribers to make profitable long-term investments without compromising their religious beliefs and/or principles, Stanbic IBTC Guaranteed Investment Fund; a mutual fund that guarantees principal of investments after holding the instrument for a minimum of three months, Stanbic IBTC Balanced Fund; which allows investors benefit from a balanced combination of  equities and fixed income assets, Stanbic IBTC Bond Fund; which provides easy unrestricted access to Nigeria’s rapidly developing bond market, Stanbic IBTC Umbrella which consists of several distinct sub funds namely the Aggressive Fund, the Conservative Fund and the Absolute Return Fund which are traded as individual investment funds. The umbrella fund structure enables investors to invest in any one or a combination of the various sub-funds towards achieving their investment objectives and most recently the Stanbic IBTC Imaan Fund which is an investment where funds are invested only in businesses with high moral values. It’s for people with high ethical standard that conforms to their religious belief in some instance though open to the general public to invest in. The funds are invested in sharia compliant equity and non-interest bearing fixed income securities.

    Stanbic IBTC Asset Management Limited is a wholly-owned subsidiary of Stanbic IBTC Holdings Plc, while Stanbic IBTC Holdings Plc is part of the Standard Bank Group, Africa’s largest bank by assets. Standard Bank Group has been in operation for 151 years and has direct, on-the-ground representation in 20 African countries.  Stanbic IBTC Holdings Plc provides the full spectrum of financial services with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.

  • Conoil increases cash dividends by 301% to N2.8b

    Conoil increases cash dividends by 301% to N2.8b

    The board of directors of Conoil Plc has recommended increase in cash dividends to shareholders by 300.6 per cent.

    A regulatory filing obtained yesterday indicated that the board of directors of Conoil, at its meeting on Monday, approved the audited report and accounts of the company for the year ended December 31, 2013 including distribution of a gross dividend of N2.78 billion as cash dividends for the business year.

    A breakdown of the dividend recommendation implies that shareholders would receive a dividend per share of N4, representing an increase of 300.6 per cent on N1 paid for the 2012 business year. Conoil had distributed N693.95 million as gross dividend for the 2012 business year.

    The current dividend would be paid to shareholders on the register of the company as at August 25, 2014. Shareholders of the company are expected to approve the dividend payment at the annual general meeting on September 26, 2014, in Uyo, Akwa Ibom. The dividend would subsequently be posted to shareholders on October 6, 2014.

    Also, the board appointed Mr. Charles Uwaechie as an executive director with immediate effect.

    Although the details of the company’s full-year results were not available as at press time, Conoil had shown impressive earnings in 2013. Nine-month report of Conoil for the period ended September 30, 2013 showed that pre and post tax profits rose by 341 per cent and 329 per cent respectively. While sales growth was modest at 6.0 per cent, the company had leveraged on increasingly efficient cost management and financing structure. Turnover rose to N121.80 billion in 2013 as against N114.77 billion in comparable period of 2012.

    Profit before tax jumped from N699.42 million to N3.08 billion while profit after tax leapt to N2.09 billion as against N487.22 million recorded in corresponding period of 2012. With these, earnings per share stood at N3.01 by September 2013 as against 70 kobo by September 2012.

    Management of Conoil had said they expected to drive performance with projected 65 per cent revenue increase from its nationwide retail outlets, especially newly commissioned mega stations. Performance was also expected to be augmented by additional income streams from new lubricant products launched earlier in the year as well as expected 72 per cent increase in probable revenue from the fully-deregulated lubricant business.

    With its new production plant in Port Harcourt, Conoil plans to step up engine oil exports to West African markets as well as enter into joint venture partnerships with leading car manufacturing companies for the use of Conoil lubricants in their vehicle engines.  It also expects additional incomes from ancillary services including marketing of Low Pour Fuel Oil (LPFO) and Bitumen, which were reactivated in the first half of 2013 and were expected to boost sales as from the second half.

    At the company’s last meeting with shareholders, chairman, Conoil Plc, Dr. Mike Adenuga, assured that the company has a robust growth strategy that places emphasis on continued investments and delivery and expansion of quality products and services.

    According to him, the future outlook of the company remains bright as it has built stronger financial position and facilities that will create enduring value for shareholders.

    “We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever growing customers, with total commitment to excellent service delivery. We firmly believe that such a robust strategy will ensure continued growth and stronger position in our core markets”, Adenuga said.

    He outlined that the company’s strategy is to provide quality products and services that will make customers want to patronize its fuel and non-fuel products adding that the company would continue its aggressive acquisition and expansion drive that aims at increasing, substantially, the number of its retails outlets nationwide.

    Adenuga noted that as part of the strategy to shore up the bottom-line, the company has strengthened and consolidated its leadership position in the aviation business with investment in the acquisition of new world-class equipment to meet the demands, on real time basis, of the company’s ever-growing local and international clientele.

    According to him, Conoil’s future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability, despite the unpredictability of the economic environment.

  • Equities record modest gain amid increasing selling pressure

    Nigerian equities recorded a modest average gain of 0.11 per cent or about N16 billion yesterday as the stock market showed marked slowdown in the gaining momentum than started on Tuesday.

    With 38 decliners to 19 advancers, the marginal positive overall market situation was driven largely by a handful of highly capitalised stocks. The All Share Index (ASI), the composite index that tracks all quoted equities on the Nigerian Stock Exchange (NSE), inched up to 42,339.84 points as against its opening index of 42,292.93 points.

    Aggregate market value of all quoted companies also rose marginally from its opening value of N13.965 trillion to close at N13.981 trillion, indicating an increase of N16 billion. The market had recorded an average return of 1.18 per cent yesterday.

    The average-year-to-date return at the stock market inched up to 2.45 per cent yesterday, implying that an average investor has a modest return of 2.45 per cent on his portfolio so far this year. Adjusted for inflation rate of 8.2 per cent and interest, investors are currently trading at a loss.

    Mobil Oil Nigeria topped the gainers’ list with a gain of N4.13 to close at N173.75. Julius Berger Nigeria followed with a gain of N2 to close at N65. Northern Nigeria Flour Mills rose by 93 kobo to N19.70. Beta Glass added 81 kobo to close at N17.11. Cement Company of Northern Nigeria garnered 77 kobo to close at N15.33. Ecobank Transnational Incorporated rose by 72 kobo to close at N17.52. Guaranty Trust Bank chalked up 54 kobo to close at N29.99. Nigerian Breweries rose by 50 kobo to N186.50. Eterna added 32 kobo to close at N4.17 while FBN Holdings rose by 28 kobo to close at N15.25 per share respectively.

    On the other hand, MRS Oil and Gas led the losers with a loss of N3.09 to close at N58.90. Lafarge Cement Wapco Nigeria and Dangote Cement dropped by N1 each to close at N123 and N228 respectively. Guinness Nigeria lost 86 kobo to close at N200. Stanbic IBTC Holdings declined by 70 kobo to N29.30 while National Salt Company of Nigeria dropped by 50 kobo to close at N10.09 per share.

    Total turnover stood at 323.91 million shares valued at N4.87 billion in 5,738 deals. The three most actively traded stocks were Access Bank, with 43.81 million shares; Zenith Bank, with 40.32 million shares and Transnational Corporation of Nigeria (Transcorp), which recorded 26.41 million shares.