Shell lubricants products will be widely available in the Nigerian market later this year, following a new deal with Ardova Plc.

Chief Executive Officer, Ardova Plc, Olumide Adeosun  said the company has reached agreement with Shell as the main distributor for Shell Lubricants branded products for the automotive and industrial sectors in Nigeria.

Chairman, Ardova Plc, AbdulWasiu Sowami, noted the company’s goal was to provide customers with best in class products and services, build partnerships that optimise synergies and create value for all parties involved.

“This deal ticks all those boxes and we are excited to add the Shell range of lubricants to the portfolio of products available to our customers,” Sowami said.

Chairman, Shell Companies in Nigeria, Osagie Okunbor, said the deal was a reinforcement of the group commitment to continue to optimise its footprints in Nigeria while working with local companies for mutual benefits and to create opportunities for the people.

“ Shell lubricants products will offer improved performance for automobiles across the country through Ardova’s chain of retail stations and resellers,” Okunbor said.

Adeosun noted that with investments in marketing and workforce training, Ardova also plans to deepen its participation in other segments of the lubricant market in Nigeria, including transport and industrials, thus making it easier for customers to access Shell’s range of lubricants products.

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He explained that the deal followed an earlier Memorandum of Understanding signed between Prudent Energy, Ardova Plc and Shell Trading International Limited laying out an exploratory framework for harnessing the local and international capabilities of the respective parties including possibilities on how to progress opportunities intended to develop cleaner energy solutions.

Shell currently has a leading presence in Nigeria’s upstream sector with oil and gas exploration, production and distribution network in the southern parts of the country and deep offshore. Ardova is one of Nigeria’s foremost indigenous integrated energy companies with an extensive network of over 450 retail outlets from which it distributes petrol, diesel, aviation fuel and liquefied petroleum gas (LPG). Ardova also produces its own range of lubricants and has warehouse facilities across Nigeria.

 

By Taofik Salako, Deputy Group Business Editor

 

The extent of diversification of Nigeria’s economy and revenue sources and the development of infrastructure would determine the sustainable economic outlook of the country in the medium to long-term.

Senior Research Analyst, FXTM, Mr Lukman Otunuga, at a media interactive session, reviewed the Nigerian macroeconomic outlook in the light of global and domestic variables and concluded that diversification, infrastructure and the development of other natural resources like gold would have positive impact on the national economic growth.

According to him, eradication of poverty in Nigeria depends on domestic production, but poor infrastructure has been a major impediment.

He noted that it is important for government to continue the ongoing quest to diversify from reliance on crude oil.

He said the ongoing democratic transition in the United States of America (USA), Brexit and potential discovery of COVID-19 vaccine are global factors that could have significant impact on the Nigerian macroeconomic performance.

He explained that the breakthrough in the race to find a vaccine for COVID-19 as well as improved U.S-China trade relations and a Joe Biden presidency in the U.S.A may uplift global sentiment, to the advantage of Nigeria.

Otunuga said the impact of lower interest rates in the country could stimulate consumption in 2021 and help to drive overall growth.

He pointed out that the rising gold price could offer Nigeria some support given the recent effort to develop the Nigerian gold mining and refining sector and to build further a national gold reserve.

“It is very important we talk about gold price because it could offer Nigeria some support. Nigeria has refined its own reserve Gold bar and paid N268 million for the 12.5kg bar to start a central bank stock,” Otunuga said.

He commended the encouraging development in the diversification of the national economy, noting that the newly regulated gold mining sector is expected to create 250,000 new jobs.

While the 2021 national budget projects growth rate of 3.0 per cent, Otunuga said Nigerian economic growth is projected to expand by 1.7 per cent in 2021.

He noted that inflation has remained above Central Bank of Nigeria (CBN) target since 2015 but it has remained unsaturated because of the persistent boarder closure.

According to him, there are limited tools to tame inflation as tight fiscal policy may do more damage than good.

“The unsavoury combination of border closures, coronavirus related disruptions and lower interest rates have fuelled inflationary pressures in Africa’s largest economy. With consumer prices projected to jump to almost 14 per cent in October, this will be the highest rate since February 2018. In a perfect world, the government may have deployed tight fiscal policy to tame inflationary pressures. However, such a move that involves raising taxes and limiting government spending may do more damage than good at a time where Nigeria continues to heal wounds inflicted by COVID-19. With inflation projected to rise amid ongoing border closures, the Central Bank of Nigeria may have limited room to loosen monetary policy,” Otunuga said.

He said the emergence of Joe Biden as President of U.S.A. could bring an improved or stronger bilateral relations to Africa while improving trade relations between both sides would be beneficial to Nigeria.

According to him, prospect of a more predictable policy towards Nigeria and a weakening in dollar would further stimulate Nigerian economic growth.

Otunuga said the decision around Britain’s exit from the European Union (EU) may also influence Nigeria’s economic outlook noting that Britain is one of the biggest sources of capital investments in Nigeria.

He pointed out that in the second quarter of 2020, investment from the United Kingdom amounted to $428.8 million and Nigeria’s foreign direct investment (FDI)  may be adversely impacted if the condition in United Kingdom failed to improve.

He noted that while COVID-19 had impacted Nigeria like other economies, Nigeria’s COVID-19 data appeared to be more encouraging than several other countries.

 

 

 

By Taofik Salako, Deputy Group Business Editor

 

Transcorp Hotels Plc has closed acceptance list for its N10 billion new capital raising, with investors and their stockbrokers having till the close of business today to submit their forms.

Transcorp Hotels, owners of Transcorp Hilton Abuja and Transcorp Hotels Calabar, is raising N10 billion through the issuance of 2.66 billion ordinary shares of 50 kobo each at N3.76 per share to prequalified shareholders. The rights were pre-allotted to existing shareholders on the basis of seven new ordinary shares for every 20 ordinary shares of 50 kobo each held as at Monday, July 13, 2020.

Acceptance list for the rights issue opened Monday October 5, 2020 and closed on Wednesday, November 11, 2020. The issuing house will however allow stockbrokers to return acceptance or renunciation forms and monies received from shareholders till today, Friday, November 13, 2020 in line with the transaction timeline approved by the Securities and Exchange Commission (SEC).

There were indications that Transcorp Hotels was unable to extend the offer despite the disruptions during the period because it needed the net proceeds of the issuance to settle existing debts.

The shares are being issued from the authorised share capital of the company which is currently at N7.50 billion of 15.0 billion ordinary shares of 50 kobo each. Post-offer fully paid-up share capital will be N5.13 billion of 10.26 billion ordinary shares of 50 kobo each.

Shareholders had earlier at an extraordinary general meeting last month in Lagos approved the N10 billion rights issue. The Nigerian Stock Exchange (NSE) also approved the rights issue, which will be listed as supplementary shares on the Exchange.

Chairman, Transcorp Hotels Plc, Mr. Emmanuel Nnorom said the approval and endorsement of the rights by shareholders empowered the board and management to look to the future with confidence despite the current harsh operating environment.

Managing Director, Transcorp Hotels Plc, Mrs. Dupe Olusola, said the company’s track record of excellent service delivery has positioned it as the first choice for international and local guests.

“We are not resting on our oars but working round the clock to innovate new products and services to further delight our guests, notable of such is the launch of asset-light strategies to deepen our hospitality footprints across Africa,” Olusola said.

She added that while the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hit, Transcorp Hotels is optimistic about a great recovery for the sector.

She noted that shareholders’ approval for new capital raising shows that shareholders have confidence in the future of the company, assuring that the company will continue to play their part in ensuring a significant recovery to the Nigerian hospitality industry.

A Non-Executive Director who also represents the Ministry of Finance Incorporated on the board, Mr. Alexander Adeyemi pointed out that given the challenging times the hospitality industry faces, it has become critical to inject funding into the business for a stronger balance sheet.

“Transcorp Hotels has maintained a history of excellent performance in the hospitality industry, and this is a bold step towards the achievement of its long term goals,” Adeyemi said.

Transcorp Hotels is the hospitality subsidiary of Transnational Corporation of Nigeria Plc. It owns and operates Transcorp Hilton Abuja, which provides luxury accommodation, excellent cuisine, conferencing and leisure facilities to business travellers and tourists from all over the world. The company also holds 100 per cent interest in Transcorp Hotels Calabar Limited, which owns and operates the Transcorp Hotels in Calabar.

 

 

 

 

 

 

By Taofik Salako, Deputy Group Business Editor

 

 

Nigerian equities continued their bullish run yesterday as investors netted N324 billion in capital gains.

Aggregate market capitalisation of all quoted equities at the Nigerian Stock Exchange  (NSE) roee by N324 billion or 1.90 per cent to close at N17.383 trillion from N17.059 trillion recorded as opening value.

With this, investors have garnered N1.18 trillion in jthree days of trading with a growth of N641 billion and N212 billion on Monday and Tuesday respectively.

The benchmark index,  the All-Share Index (ASI) increased by 621.26 points, representing a growth of 1.90 per cent to close at 33,268.36 points as against 32,647.10 points  recorded as opening index.

Accordingly, month-to-date and year-to-date returns increased to 9.0 per cent and 23.94 per cent, respectively.

The uptrend was driven by gains recorded in large and medium capitalised stocks, amongst which are; Nigerian Breweries, Presco, MTN Nigeria Communications (MTNN), Guinness and NASCON Allied Industries.

An analysis of the price movement chart showed that 51 stocks recorded price gain compared with seven losers.

Fidson Healthcare, Guinness, Neimeth International Pharmaceuticals and Sterling Bank led the gainers’chart in percentage terms, gaining 10 per cent each, to close at N4.95, N20.90, N2.42 and N2.20 per share, respectively.

GlaxoSmithKline followed with 9.85 per cent to close at N7.25, while Oando rose by 9.82 per cent to close at N3.58 per share.

Conversely, Learn Africa topped the losers’ chart in percentage terms, losing 4.76 per cent to close at N1 per share.

C&I Leasing followed with a loss of 4.65 per cent to close at N4.10, while Stanbic IBTC declined by 4.17 per cent to close at N46 per share.

Linkage Assurance dropped 4.08 per cent to close at 47k, while Red Star Express shed 3.68 per cent to close at N3.40 per share.

In the same vein, the total volume of trades transacted rose by 48.27 per cent as investors bought and sold 858.16 million shares valued at N9.06 billion in 8,142 deals.

This was in contrast with 578.78 million shares worth N7.74 billion achieved in 7,651 deals on Tuesday.

Transactions in the shares of FBN Holdings topped the activity chart with 145.05 million shares valued at N1.08 billion.

Transcorp sold 126.26 million shares worth N141.21 million, while Zenith Bank traded 60.81 million shares valued at N1.52 billion.

United Bank for Africa accounted for 52.87 million shares worth N469.67 million, while  Access Bank transacted 44.05 million shares worth N400.98 million.

By Taofik Salako, Deputy Group Business Editor

 

Nigerian equities leapt across the N17 trillion mark yesterday after rallying N211 billion in net capital gains as investors continued to place premium on most stocks.

Aggregate market value of all quoted equities at the Nigerian Stock Exchange (NSE) rose from its opening value of N16.848 trillion to close at N17.059 trillion. The All Share Index (ASI)- the value-based common index that tracks all share prices at the Exchange, also trended upward to 32,647.10 points as against its opening index of 32,243.05 points.

With the average gain of 1.3 per cent yesterday, the average year-to-date return rose to 20.6 per cent.

All sectoral indices closed positive, showing the widespread bargain-hunting across the sectors and stock categories. The NSE Insurance Index rose by 3.3 per cent. The NSE Oil & Gas Index appreciated by 1.3 per cent. The NSE Banking Index rose by 0.9 per cent. The NSE Consumer Goods Index rallied by 0.8 per cent while the NSE Industrial Goods Index inched up by 0.2 per cent.

There were 39 gainers to 11 losers. MTN Nigeria Communications led the gainers with a gain of N6.10 to close at N156.20. Stanbic IBTC Holdings followed with a gain of N2 to close at N48. NASCON Allied Industries rose by N1.40 to close at N15.45 while Dangote Sugar Refinery added N1.30 to close at N19.40 per share.

On the negative side, Nestle Nigeria led the losers with a drop of N21.70 to close at N1,400 while Lafarge Africa dropped by 45 to close at N21 per share.

Total turnover stood at 578.8 million shares worth N7.7 billion. Zenith Bank was the most active stock with a turnover of 67.9 million shares worth N1.6 billion.

“We expect investors to take profit in the next trading session following the sustained bullish momentum,” Afrinvest Securities stated.

 

By Taofik Salako, Deputy Group Business Editor

Directors of Japaul Oil & Maritime Services Plc have approved the continuation of the balance sheet restructuring and shares reconstruction of the company.

In a regulatory filing after the board meeting at Japaul, the board of the company stated that it approved the continuation of the shares reconstruction exercise through convening of court ordered meeting in order for shareholders to consider the specific particulars of the balance sheet restructuring and reconstruction.

The board noted that shareholders of Japaul had at the recent annual general meeting approved the general nature of the share reconstruction.

The board also approved the third quarter results of the company showing total turnover of N997.74 million and profit after tax of N91.05 million.

At the annual general meeting (AGM), shareholders had approved the change of the company’s name from  Japaul Oil & Maritime Services Plc to Japaul Gold and Ventures Plc to reflect its new business focus from oil and gas servicing sector into natural resource management, specifically the exploration, mining, processing and export of minerals such as gold and lithium among others.

Shareholders also approved the reconstruction of all existing ordinary shares of 6.0 billion ordinary shares of 50 kobo each while also authorising increase in authorised share capital to 60 billion ordinary shares. After the reconstruction, shareholders mandated the board to undertake public offering through combination of any of book building and public offer to raise $70 million or its naira equivalent through all possible legitimate means.

The net proceeds of the proposed new capital raising will be used to finance the completion of expanded explorations; mining activities; mineral processing; export; engineering design; procurement; installation of a gold processing plant and working capital among others.

Chairman, Japaul Oil & Maritime Services Plc, Mr. Paul Jegede said the changes underscored the company’s commitment and proactive nature in exploring opportunities to bring value to its shareholders.

According to him, the diversification was due to the belief that natural resources are a viable substitute for oil, as necessitated by oil prices which have been nosediving even before the COVID-19 pandemic.

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“The mining of these natural resources is not only profitable, it is without any negative impact on the environment,” Jegede said.

He noted that Japaul has already acquired mining and exploration licences through buy-overs for the exploration, mining and exportation of gold, lithium, copper, tin, lead and zinc across seven states in Nigeria where strategic minerals have been discovered in commercial quantities and reserves.

He added that the company has also started a landmark restructuring and transitioning to become Nigeria’s first indigenous publicly quoted company in that space.

Group Managing Director, Japaul Oil & Maritime Services Plc, Mr Akin Oladapo said the diversification is as a result of the company’s five-year growth plan.

“We had the foresight that the situation of the oil and gas sector would not improve for a long time, which is the case today. We started training ourselves in mining-related businesses and the rest is history. We have bought mining and exploration licences for Gold, Lithium, Lead, Copper, Tin, Zinc etc., which our company will be working with,” Oladapo said.

He said the company already have Canadian expatriates that have been doing explorations works for it, specifically, MATRIX GEOTECH in Toronto, Canada, adding that the company’s strategy is to start mining gold as from 2021 to 2022 while exploration works continue on other licences that it has.

“With this new business focus, Japaul Gold and Ventures Plc is already positioned strategically for the supply of the oil of tomorrow to international markets which have unlimited demand as the world makes a more mineral-intensive transition from fossil fuel to low-emission energy and from the industrial revolution era to the use of more advanced technologies,” Oladapo said.

Jegede explained that the oil and gas servicing sector has been posing a whole lot of challenge as about $150 million was invested by the company for the purchase of different marine vessels, which have since stopped bringing returns to the shareholders because there have been no contracts with international oil companies (IOC) to engage them.

According to him, the few jobs available with the IOC became so competitive to the extent that the company had to give out a number of its vessels at daily charter rate which is below cost of operations. For instance, the AHTS vessel that it used to give out on charter for $30,000 per day came down to less than $10,000 per day which is even far less than the cost of running the vessel per day.

“With this situation, we have been incurring losses for some time now and no dividend is being paid and debt in the bank was mounting. The company was finding it difficult to meet her various obligations. The way the daily charter rate for the vessels was going down is the same way the value of the vessels, which are the main assets of our company, was going down. The vessels became worthless,” Jegede said.