The Nation Newspaper

Tag: drop

  • Total Nigeria retains N5.77b dividend payout despite 46% drop in profit

    Total Nigeria retains N5.77b dividend payout despite 46% drop in profit

    The board of directors of Total Nigeria Plc has recommended payment of final dividend of N4.75 billion to shareholders, bringing the total dividend payout for the 2017 business year to N5.77 billion. The company had also paid N5.77 billion as cash dividend to shareholders in 2016.

    The breakdown of the dividend recommendation indicated that shareholders will receive a final dividend of N14 per share. The company had earlier distributed N1.02 billion as interim cash dividend, representing interim dividend of N3 per share.

    Key extracts of the audited report and accounts of Total Nigeria for the year ended December 31, 2017 showed a top-down decline in performance. Turnover dropped marginally from N290.95 billion in 2016 to N288.06 billion in 2017. Profit before tax dropped by 42 per cent from N20.35 billion in 2016 to N11.8 billion in 2017 while profit after tax declined by 46 per cent from N14.8 billion to N8.02 billion. Earnings per share also declined by 46 per cent from N43.58 in 2016 to N23.62 in 2017. However, the company’s shareholders funds improved by 20 per cent from N23.57 billion to N28.23 billion.

    The company blamed the decline on tough operating environment in 2017 citing economic recession and its consequent contraction of the downstream market.

    The company also stated that scarcity of Premium Motor Spirit (PMS) due to high landing cost compared to the template, foreign exchange scarcity that hindered importation and high financial costs due to increase in bank lending interest rates impacted negatively on the company’s performance.

    Managing Director, Total Nigeria Plc, Jean-Philippe Torres, said Total Nigeria is committed to ensuring total customer satisfaction by the creation of quality products and services delivered with a strong commitment to safety and respect for the environment.

    According to him, the overall objective of total customer satisfaction drives all the company’s actions and the mutual acknowledgement of them by its partners forms the basis for their business relationships.

    “To sustain this objective and our leadership of the market, our commitment is to build and sustain a work culture firmly rooted in professionalism, respect for employees, internal efficiency and dedicated services,” Jean-Philippe Torres said.

  • Oil prices end gain streak, drop to $61

    Oil prices end gain streak, drop to $61

    The recent gains recorded by global oil prices have slipped as the commodity has lost more than $2 in seven days.

    Early yesterday, Brent crude, the international benchmark dropped to $61 from the $64 recorded on November 7.

    US West Texas Intermediate (WTI) traded at $55.18, at against its trading price of $57.30 on November 7.

    In a report released two days ago, the International Energy Agency (IEA) had projected that the US will be the world’s leading producer of oil and gas by 2025.

    IEA reduced its oil demand growth forecast by 100,000 barrels per day (bpd) for 2017 and forecast 1.3 million bpd oil demand for 2018.

    “The oil market faces a difficult challenge in 1Q18 with supply expected to exceed demand by 600,000 bpd followed by another, smaller, surplus of 200,000 bpd in 2018.”

    While speaking at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), the Secretary-General, Organisation of Petroleum Exporting Countries (OPEC),  Mohammed Barkindo said countries did not have to worry about oil reaching its peak demand until 2040.

    Barkindo had said an increase in global population might result in more people living without access to electricity, cooking gas or heating and thus require more oil.

    In its monthly report, OPEC had reviewed its oil demand forecast saying oil demand will increase by 360,000bpd to stand at 33.42 million barrels per day.

  • Foreign reserves drop by 11.7% to $25.72b

    Foreign reserves drop by 11.7% to $25.72b

    Foreign exchange reserves fell 11.7 per cent to $25.72 billion by December 28, from $29.13 billion a year earlier, Central Bank of Nigeria (CBN) data showed on Friday.

    However, the reserves showed a 4.2 per cent increase month-on-month, up from $24.69 billion on November 28 – due to a slight recovery in global oil prices and a rise in the OPEC member’s oil production levels.

    Nigeria’s oil production rose to 1.70 million barrels per day (mbpd) in November, up from 1.65 mbpd the previous month, which lifted the forex reserves.

    The foreign exchange reserves fell to $25.78 billion as of August 16, representing 2.11 per cent plunge from a month ago. The reserves position is expected to provide about five months import cover for the country.

    Previous data on the reserves showed that they increased marginally by $40 million in March on a 30-day moving average basis to $27.9 billion and have continued to record marginal decline till current position.

    The reserves were also at $28.33 billion at end-June 2015, compared with $34.24 billion at end-December 2014, representing a decrease of 17.3 per cent decline.

    The fall in reserves was due to the sharp decline in foreign exchange inflow from in the economy due to continuous decline in prices of crude oil in the international markets.

    Meanwhile, the naira is set to witness another round of decline against the dollar in the days ahead as an increase in dollar flows from Nigerians living abroad coming home for holidays fell short of expectations, traders said.

    The local currency was quoted at 490 to the dollar on Thursday from 495 against the dollar last week on the parallel market.

    In the official interbank window, the naira was quoted at 310.25 to the dollar on Thursday, but it was expected to close at around 305.5, the same level it has traded at since August.

    “We see the naira depreciating against the dollar by the time more businesses resume operations next week after the festive season as dollar liquidity remains thin in the market,” one currency dealer said.

  • Foreign reserves drop to $33b

    Foreign reserves drop to $33b

    The nations foreign reserves fell to $33 billion as at February 13, down 4.25 per cent from $34.5 billion a month ago, latest data from the Central Bank of Nigeria (CBN) have shown.

    The reserves have dwindled since last year following the fall in world oil prices. This prompted the CBN to intervene in the market by selling dollars to defend the naira. The reserves fell three per cent in two weeks to $37.59 billion by November 13, as the CBN stepped up support for the ailing currency.

    The reserves were at a four-month low of $37.9 billion as of November seven last year, down 3.99 per cent month-on-month after the CBN sold dollars to banks to prop up the value of the naira. The reserves were at $39.55 billion on October 10. In July they stood at $37.89 billion.

    The CBN said it will continue to defend the local currency which has fallen six per cent so far this year on concerns about lower oil prices and an exit from the local debt and equity markets by offshore investors.

    The apex bank said the decrease was driven largely by the increased funding of the foreign exchange market in the face of intense pressure on the naira and the need to maintain stability.

    The apex bank said the pressure on the external reserves was deemed to be consistent with the seasonal annual payment of dividends to foreign investors. The bank has spent billions of dollars defending the naira, hit by falling global oil prices, in the past seven to eight months.

    The CBN said the decrease was driven largely by the increased funding of the foreign exchange market in the face of intense pressure on the naira and the need to maintain stability, adding that the pressure on external reserves was deemed to be consistent with the seasonal annual payment of dividends to foreign investors.

    Meanwhile, the CBN yesterday intervened for the third straight session to defend the naira by selling dollars below its official band but the currency traded weaker in the interbank market. Dollar sales by an oil firm were traded at a weaker level than in the earlier sale by the CBN, dealers said.

    The bank once again sold dollars below its official band, at N198 to the greenback, and again banned banks from reselling dollars bought at its currency auction to other banks to curb speculation.

    Reuters said that all the trades by the bank have been outside its own target band of N160 to N176 to the dollar set in November when it devalued the currency by eight per cent to save its foreign reserves.

  • Inflation to drop further to 7.8%

    Inflation to drop further to 7.8%

    The Central Bank of Nigeria (CBN) yesterday reviewed the timeline for utilisation of dollars purchased from autonomous or interbank market from 48 hours to 72 hours.

    In a circular to authorised dealers, titled: Daily Foreign Currency Trading Positions of Banks and Period for Utilisation of Funds, signed by Mrs. O.L Ahuchiogu for CBN Director, Trade & Exchange, the regulator explained that the letter is in furtherance of December 18, 2014 circular on the matter.

    Accordingly, she said that authorised dealers are required to maintain 0.1 per cent as maximum open limit of their shareholders’ funds (SHF) unimpaired by loses as foreign currency trading position at close of each business day.

    Mrs. Ahuchiogu said that the implementation of the policy is with immediate effect. “Further to the circular of December 18, 2014, authorised dealers are hereby notified that the daily foreign currency trading positions of banks have been reviewed with immediate effect. Also, banks required to utilise funds purchased from the autonomous or interbank foreign exchange market within 72 hours from the value date, failing which such funds must be returned to the CBN for re-purchase at the bank’s buying rate,” the circular said.

    Before now, banks were to maintain zero per cent of their shareholders’ funds as foreign exchange trading position as at the close of business day. The apex bank had warned that breach of the policy would attract sanctions.

  • Don’t drop Kashamu, Ogun PDP warns

    Don’t drop Kashamu, Ogun PDP warns

    •’I’ll sacrifice my blood’

    Members of the Peoples Democratic Party (PDP) in Ogun East Senatorial district – comprising nine local governments- yesterday warned the party not to drop its candidate, Buruji Kashamu.

    They argued that should the party yield to lobbying to substitute Kashamu with a yet-to-be-named candidate, the result would be counter-productive.

    They said the PDP should forget their votes, if the “detractor” wishes were carried out.

    The people said: “No Buruji Kashamu, no vote for PDP in Ogun East.”

    They were responding to a request by the state Chairman, Dayo Bayo, who sought their consent at a political gathering yesterday in Ijebu-Igbo.

    The chairman said:  “Some individuals are pressuring and working in Abuja that Kashamu should sacrifice his ticket.

    “I don’t see what I can do now after the conclusion of the exercise (primary).

    “I want to know your thoughts. Now I have heard you, I have heard what the nine local governments have said.

    “I remember in 1987 when Chief Obafemi Awolowo died, Chief Emeka Odimegwu-Ojukwu wrote in the condolence register that he (Awo) was the best president Nigeria never had.

    “I don’t want that to happen to Kashamu, he is our leader and he is the best. I will communicate your decision to the appropriate quarters, he is not stepping down.

    “Nobody is perfect, you will see people saying all kinds of things about him, people who can’t come close to him.

    “He has not travelled to the United States but people are saying all kinds of falsehood about him and drugs. We do not have another senatorial candidate for Ogun East save Buruji Kashamu.”

    Kashamu, who was at the meeting, said  he would “sacrifice” his “blood” for the ticket, warning that any attempt to rob him would mean defeat for the PDP in Ogun East.

    He said if the plans of the detractors  succeeded, it would weaken the PDP’s chances in the state.

  • FIFA RANKING: Eagles drop to 43rd place

    FIFA RANKING: Eagles drop to 43rd place

    • Still 9th in Africa

    NIGERIA’S senior national team have dropped a place to end 2014 as the 43rd best team in the world and ninth in Africa with a total point of 656, according to the latest FIFA world ranking released on Thursday.

    This fall is due to the Eagles’ failure to qualify for the 2015 African Cup of Nations (AFCON) in Equatorial Guinea.

    Nigeria started the year in 41st position in January and in February, continued their slow and steady fall as they dropped six places to 47th and maintained it in the March ranking.

    The team then moved up the ladder as they were rated 45th in the April standing and in May, moved a spot upward to climb to the 44th spot in the world and sixth in Africa and also in the June version of the grading.

    The country’s biggest progress in the ranking came in July as they climbed ten places to 34th spot following their impressive World Cup campaign in Brazil despite getting knocked out by France in the second round  of the competition and also in August. Nigeria again moved upward by a point in the ranking to clinch 33rd spot.

    The African champions then fell four places to the 37th best football-playing team in the world according to the ranking released in September. By October, the team nosedived again by five places to 42nd and maintained the position in November.

    North Africans Algeria ended 2014 as the best team in Africa followed by Tunisia and Cote d’Ivoire while the Black Stars of Ghana became the fifth best team in Africa and are ranked 37th in the world.

    World champions Germany topped the final ranking of the year for the second time since 1993, while South American giants Argentina and Colombia finished in second and third place respectively.

  • World Bank to Nigeria: plan for drop in oil prices

    World Bank to Nigeria: plan for drop in oil prices

    •Nigeria won’t borrow to fund shortfall, says Okonjo-Iweala

    The World Bank Group and the International Monetary Fund (IMF), have urged Nigeria to take proactive steps in readiness to match the expected drop in revenue, arising from the continuous drop in the prices of crude oil.

    The Minister of Finance and the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, who made this known yesterday in Washington DC, said the drop in oil prices is of great interest to Nigeria, since the economy is largely driven by revenue from oil.

    Mrs Okonjo-Iweala, who addressed the Nigerian press at the World Bank Group headquarters, said the development will naturally arouse interest and lead to questions being asked as to how Nigeria would manage if oil prices continue to decline.

    She said as a consequence of these developments, the IMF and the World Bank Group are asking that countries, especially like Nigeria, the emerging markets and lower income countries, should be ready with contingency plans to be able to continue to manage their economies, “should the mediocre growth continue and oil prices continue on the decline trajectory.

    She said the World Bank Group President, Dr.Jim Yong Kin and his IMF counterpart, Christine Largard, have urged that “we should have the right mix of policies, including building up our buffers to be able to sustain the economy,” adding that the Nigerian team to the conference, including the Central Bank Governor, Godwin Emefiele, Director of Budget, Dr. Bright Okogu, the Central Bank Deputy Governor, Economic Policy, Dr.Sarah Alade, and others on the Nigerian team to this year’s meetings, have been strategising and articulating the options open to Nigeria, in conjunction with the global financial institutions so as to be able to come up with strategies on how to manage the economy.

    They said we should be ready with contingency plans and that we need to continue with our structural reforms, as well as “build up buffers and be ready with a contingency plan,” Mrs Okonjo-Iweala, stated.

    But the Minister ruled out any recourse to borrowing from the Brettenwood institutions to manage any fiscal shocks and vulnerabilities arising from  the declining crude oil price at the international market.

    She gave the assurance against  the backdrop of anxiety in some quarters that the nation’s rising external debt profile and declining revenues may cripple the business of governance,even as the two development finance institutions have advised governments of developing and frontier economies to adopt contingency plans to manage downside effects of expected revenue shortfalls.

    Nigeria’s crude Bonny Light like the Brent crude fell from about $100 per barrel to about $84 per barrel over the last few days raising fears that the 2014 and 2015 budget implementation may suffer a setback.

    But responding on options for these contingencies in the light of falling revenues, Okonjo Iweala said that Nigeria would not take further external borrowings from the Brettenwood institutions, but may tighten government expenditure profile and build up the country’s buffer.

  • Fear of APC: Jonathan set to drop more ministers

    Fear of APC: Jonathan set to drop more ministers

    MORE ministers are likely to leave the cabinet soon, The Nation learnt at the weekend.

    It is all part of the fallout of the defection of five governors to the All Progressives Congress (APC), according to sources.

    Ministers are also under pressure to either align with the President’s 2015 aspiration or be shown the way out.

    But some ministers, who are professionals, are not keen on being drawn into politics, especially in their states where the Peoples Democratic Party (PDP) is factionalised.

    Of President Goodluck Jonathan’s 42-man cabinet, 11 left due to either sack or voluntary resignation.

    It was, however, learnt that some ministers associated with PDP governors or leaders, who have defected to the APC, might be relieved of their appointments unless they make their position known.

    The Presidency is yet to recover from the shock of last Tuesday’s merger of the New PDP with the APC, according to sources.

    According to sources, the President met with his strategists, key PDP leaders and Senate President David Mark, on Wednesday and Thursday on how to deal with the challenge posed by the APC.

    Although some harsh steps were suggested, it was learnt that Mark insisted on the rule of law to manage the situation.

    A source said Mark claimed that it would be difficult for him to declare the seats of senators who have joined APC vacant since they are yet to form the Senate leadership of their action.

    Having reached a brick wall, it was gathered, the President’s strategists came up with four options to tackle the APC challenge.

    The options are:

    •engaging those who defected in legal battles to declare their seats vacant;

    •sponsoring political dissidents in their states;

    •creating legal and political hurdles for anyone with a case or their relations; and

    •ridding the Federal Executive Council (FEC) of the defectors’ loyalists.

    It was learnt that the cleansing of FEC of those loyal to APC leaders is one of the immediate options on the card.

    A top source said: “The battle line has been drawn. Ministers are now left with the option of either identifying with PDP and the President’s cause or seeking refuge elsewhere.

    “Some ministers and board members may be dropped because those who nominated them have defected to the APC. The alternative is for such people to openly denounce their godfathers or be shown the way out.

    “Although some of the ministers have performed but Jonathan’s strategists believe they should be asked to go. These strategists do not see defection to APC as a matter of political game; they believe in do-or-die politics.

    “The ball is in Jonathan’s court to determine whether he will take to the advice or not.”

    The President had earlier sacked some ministers, allegedly linked to the G-7 governors when the New PDP was formed.

    They were part of the nine ministers dropped from the cabinet.

    Sacked were Olugbenga Ashiru (Foreign Affairs), Hadiza Mailaifa (Environment), Shamsudeen Usman (National Planning), Ama Pepple (Lands, Housing and Urban Development), Rukayyatu Rufai’ (Education) and Ita Ewa (Science and Technology).

    The others were Minister of State for Defence Olusola Obada; Minister of State for Power Zainab Kuchi and Minister of State for Agriculture Bukar Tijani.

  • Foreign exchange reserves drop to $45b

    The foreign reserves have declined to $45 billion as at October 11, data from the Central Bank of Nigeria (CBN) website has shown. Analysts have projected a further fall of the reserves to $44 billion by year-end. The reserves were at $45.4 billion as at September 30, as against $46.8 billion on August 30, reflecting a loss of $1.4 billion in 30 days, before declining to current level.

    The CBN data showed that the reserves were on a steady and continuous decline throughout September.

    The reserves were at $46.82 billion on September 2, 446.81 billion on September 3 and $46.77 billion on September 9. The decline continued on September 19, when they stood at $46 billion before dropping to $45.9 billion on September 20.

    The reserves stood at $47 billion on August 19, dropped to $46.9 billion on August 21. The reserves were at $47.7 billion on July 1, and dropped to $47 billion on July 15.

    They stood at $48.33 billion on June 24, declined to $48.15 billion on June 27 and closed the month at $48 billion. The CBN data showed that the reserves were at $43.83 billion at end of December, 2012 as against $68 billion in August 2008 before the global financial crises impacted negatively on them.

    The CBN had consistently maintained that inflow into the reserves was not consistent with the oil prices and, this underscores the need for tighter fiscal controls around oil revenues.

    The apex bank has also said there was urgent need to pursue policies that would foster macro-economic stability, economic diversification as well as encouraging foreign capital inflows. It said a higher rate of retention of oil revenues should facilitate the efforts at maintaining exchange rate stability as an antidote to imported inflation even without excessive reliance on monetary tightening measures.