The Nation Newspaper

Tag: grows profit

  • Seplat grows profit by 499% to N80.6b

    Seplat Petroleum Development Company Plc recorded strong growths in sales and profitability in 2018 as pre-tax profit quadrupled to N80.6 billion.

    Key extracts of the audited report and accounts of Seplat for the year ended December 31, 2018 showed that turnover rose by 65 per cent from N138.28 billion in 2017 to N228.39 billion in 2018. Profit before tax jumped by 499.4 per cent to N80.62 billion in 2018 compared with N13.45 billion recorded in 2017. However, with taxes of N35.75 billion paid in 2018 as against tax gain of N67.66 billion in 2017, profit after tax dropped to N44.87 billion in 2018 compared with N81.11 billion in 2017. Earnings per share thus dropped from N143.96 in 2017 to N79.04 in 2018.

    The board of the company has recommended a dividend per share of $0.05, the same payout for 2017 year.

    Chief Executive Officer< Seplat Petroleum Development Company Plc, Mr. Austin Avuru said the company has delivered an excellent operational and financial performance resulting in robust profitability and cash flow generation that provide it with an extremely solid foundation for growth in the coming years.

    He said the company’s core assets in the West, OMLs 4, 38 and 41, the extension of the license to 2038 means that the company can confidently plan and invest long into the future to realise the full potential of those blocks.

    “As we continue to enhance production and revenue diversification with new wells scheduled at OML 53 in the East, the board took the final investment decision to invest in the large scale ANOH gas and condensate development which will form the next phase of transformational growth for our gas business,” Avuru said.

    He noted that disciplined capital allocation continues to remain at the core of activities evidenced by continual deleveraging of debt levels to the current balance of $350 million.

    According to him, during the immediate past year, the company reinstated the dividend, increased capital investments and with the resources and headroom in its capital structure, it has been equipped to capitalise on organic and inorganic growth opportunities as they may arise.

    He said the company will, going forward, retain its price disciplined approach to only allocating capital to the highest cash returning organic and value accretive acquisition growth opportunities.

    He assured that with a robust dividend yield,  Seplat will become the investment of choice in Nigeria to access sub-Sahara Africa’s most prolific oil and gas opportunities.

     

     

  • May & Baker Nigeria grows profit by 534% in first half

    May & Baker Nigeria Plc sustained impressive growth in the first half of this year as net profit rose by 534 per cent to N601.37 million.

    Key extracts of the interim report and accounts of May & Baker Nigeria for the six-month period ended June 30, 2018 submitted to the Nigerian Stock Exchange (NSE) showed that total comprehensive income-which included profit after tax and extra ordinary income rose to N601.37 million in first half 2018 as against N94.86 million recorded in the comparable period of 2017.

    The 534 per cent increase in net distributable earnings has raised strong prospect of possible significant increase in dividend payout to shareholders. The healthcare company had increased its dividend payout by 233 per cent for the 2017 business year after it rounded off the year with significant growths in profitability.

    The report showed a well-rounded improvement in the bottom-line of the healthcare company as key underlying profitability margins improved considerably during the period. Pre-tax profit margin-which measures average pre-tax profit per unit of sale and serves as benchmark for profitability of the company, tripled from 3.13 per cent in first half 2017 to 8.44 per cent in first half 2018. Gross profit margin had increased from 30 per cent in first half 2017 to 33 per cent in first half 2018 while operating margin also grew to 12.7 per cent in 2018 as against 10.11 per cent recorded in corresponding period of 2017.

    Market analysts said the increase in gross margin, operating margin and pre-tax profit margin showed that the company’s performance in the first half was driven by improved business operations, increased efficiency and better cost management.

    The report showed that group’s profit before tax rose by 178.76 per cent to N388.90 million in first half 2018 as against N139.51 million recorded in comparable period of 2017. Profit after tax also leapt by 178.78 per cent from N94.86 million to N264.45 million. Earnings per share thus increased from 9.68 kobo in first half 2017 to 26.98 kobo in first half 2018. With the addition of N336.92 million gain from discontinued operations of its food business , total net earnings jumped to N601.37 million in first half 2018 compared with N94.86 million recorded in first half 2017.

    Group operating profit had increased by 29.9 per cent from N452.25 million to N587.35 million. Gross profit also rose from N1.34 billion to N1.52 billion. Group turnover had increased from N4.47 billion in first half 2017 to N4.61 billion in first half 2018. Further analysis had shown that the company’s finance costs reduced by 36 per cent from N326.87 million in first half 2017 to N209.34 million in first half 2018.

    Business segmentation analysis showed that the performance of the company was driven by its core pharmaceuticals business, which saw 22 per cent growth in sales during the period. The company recorded improvement in sales in all its principal geographical business areas of Lagos, West, East and North.

    Following shareholders’ approval at the Extraordinary General Meeting in November 2017 and approval by the Securities and Exchange Commission (SEC) in February 2018, the foods division of the business ceased operations and was subsequently disposed in April 2018.  The profit of N336.92 million derived from the disposal relate to the excess of proceeds over the carrying amount of the assets at the date of disposal and the incidental expenses thereto.

    Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, said It is noteworthy that the company achieved higher turnover in 2018 despite the discontinuation of a significant arm of its business responsible for about 20 per cent of turnover in 2017.

    He said the first half results have again demonstrated the long-term sustainability of the company’s growth strategy and the continuing efficiency of its world-class pharmaceutical manufacturing complex in Ota, Ogun State.

    According to him, the results showed that the group’s core business can sustain long-term value creation for shareholders even as it continues to explore additional opportunities for expansion of the core healthcare business in Nigeria and beyond.

    “Our many growth initiatives are paying off and we are happy that the results have proved us right. With improvement in macroeconomic environment, we will continue to improve on our performance with a view to creating greater value for our shareholders,” Okafor said.

  • NASCON grows profit by 130% to N6b in Q3

    NASCON Allied Industries Plc, a member of the Dangote Group, recorded significant growths in sales and profitability in the third quarter, putting the company in good stead to increase dividend payout for another consecutive year.

    Key extracts of the interim report and accounts for the third quarter ended September 30, 2017 showed that gross earnings rose by 62 per cent while profit before tax jumped by 130 per cent. Net earnings per share doubled by 129 per cent from 89 kobo in third quarter 2016 to N2.04 in third quarter 2017.

    NASCON had paid a dividend per share of 70 kobo for the 2016 business year, 27 per cent above 55 kobo paid for the 2015 business year. Earnings per share had improved from 79 kobo in full-year 2015 to 91 kobo in full-year 2016.

    The latest report showed that turnover rose from N12.8 billion in third quarter 2016 to N20.71 billion in third quarter 2017. Profit before tax doubled from N2.59 billion to N5.96 billion while profit after tax leapt from N1.76 billion to N4.05 billion.

    Chairman,   NASCON Allied Industries Plc, Yemisi Ayeni, recently said the company would be making new investments in its major lines of operations to improve overall efficiency and market share in continuation of ongoing efforts to ensure long-term growth and returns to shareholders.

    She assured shareholders of its unwavering commitment to the continued growth and prosperity of the company.

    She said the outlook for the company remains optimistic as it continues to drive growth across its core brands with significant investments in marketing and brand building efforts.

    She said the company would also continue to focus on distribution and route-to-market efficiency as a key driver of growth.

    “To support our growth strategy, we will be investing in salt packaging and seasoning cubing lines to improve efficiency and increase market share. We will be acquiring new trucks to reduce external hiring and ensure optimal distribution of all our products,” Ayeni said.

    Managing director, NASCON Allied Industries Plc, Mr. Paul Farrer, noted that with expected steady improvements in the economy over the next 18 months, the company is confident of improved performance.

    He added that the company had taken some key decisions in the area of retail pricing and convenience, which have resulted in immediate and long-term gains, including a focus on optimization of the route to market to ensure product availability.

    “We remain confident that our long term strategy for vegetable oil and tomato paste businesses will yield results in the near future,” Farrer said. NASCON had suspended the vegetable oil and tomato paste businesses in 2016 due to paucity of raw materials.

  • Fidelity Bank grows profit to N16b in nine months

    Fidelity Bank Plc has sustained a robust performance outlook in the third quarter as the commercial bank grew pre-tax profit by 65 per cent to N16.2 billion within nine months.

    Key extracts of the interim report and accounts for the nine-month period ended September 30, 2017 showed that Fidelity Bank grew its top-line by 17.9 per cent while profit after tax also rose by 65.1 per cent. Earnings per share thus increased to 67 kobo in third quarter 2017, considerably above 40 kobo recorded in comparable period of 2016.

    The report showed that gross earnings rose to N130.1 billion in third quarter 2017 as against N110.3 billion reported the same period in 2016. Profit before tax rose from N9.8 billion to N16.2 billion while profit after tax increased to N14.45 billion in 2017 as against N8.75 billion recorded in third quarter 2016.

    Its Chief Executive Officer, Mr. Nnamdi Okonkwo, attributed the consistent delivery of strong financial results by the bank to the disciplined execution of its medium term strategy, which centred on optimal balance sheet management, strategic cost reduction and increased play in the digital and retail banking space.

    “We are delighted with our nine months financial performance, which showed strong growth in key revenue lines and a corresponding decline in our operating expenses, despite the high inflationary environment,” Okonkwo said.

    He noted that the implementation of the initiatives from the bank’s business process review project continued to impact positively on operational efficiency as total operating expenses declined by 2.6 per cent to N47.5 billion, leading to cost-income ratio dropping to 66.8 per cent from 77.3 per cent by the end of 2016.

    He pointed out that the nine-month pre-tax profit of N16.2 billion is already higher than the annual profit numbers in any of the last four financial years between 2013 and 2016.

    He added that with strong focus on select niche corporate banking sectors as well as micro small and medium enterprises (MSMEs), Fidelity Bank is rapidly implementing a digital based retail banking strategy, which has resulted in a 93 per cent growth in savings deposits over the last three years.

    He said with 50 per cent customer enrollment on debit cards, 30 percent of the bank’s customers are now using its flagship mobile and internet banking products.

    Fidelity Bank last week successfully issued a $400 million Eurobond, which was priced at 10.50 per cent coupon. The transaction regarded as the largest combined new issue and liability management offering by a Nigerian issuer, has reopened the international bond markets for Nigerian Tier II banks.

  • Law Union pays N3.3b claims, grows profit by 100%

    Law Union and Rock Insurance Plc has paid claims in excess of N3.3 billion between 2015 and 2016, despite the economic recession in the country.
    Similarly, the underwriting firm paid a total of N380 million as claims in the first quarter of the year, representing a 24 percent increase in what the company paid in the same period of year.
    Managing Director, Jide Orimolade, made this known during a CEO Forum with the National Association of Insurance and Pension Correspondents (NAPICO), in Lagos.
    Orimolade disclosed that the firm’s Profit after Tax further grew by 100 percent at the end of its financial year ended December 31, 2016 as it rose from N280.91 million in 2015 to N561.85 million in the period under review.
    He said the underwriting result appreciated to N1.25 billion in 2016 when compared with N1.14 billion achieved in the corresponding period of 2015, indicating 10 percent growth.
    He said: “Despite the 2016 economic recession, which affects the growth of all sectors, we have been able to grow our gross premium written income slightly by two percent. The giant stride of the company in Profit after Tax in 2016 galvanised it positively by reducing the previously accumulated loss by 95 percent from N468 million in 2015 to N24 million in 2016.
    “We plan to grow our gross premium income by 50 percent in 2017. We see a lot of opportunities in the economy, especially infrastructure, rail system that is being introduced by the Federal Government, local content being enforced by NAICOM among others. In terms of retail business, we intend to launch more products in 2017. We plan to retain 90 percent of our customers at minimum and grow our direct and retail business in 2017. We believe that retail is the future of insurance business. We will also improve relationship with brokers, agents and other channel of distributions such as bancassurance, e-market, social media platforms etc.
    “We also plan to achieve an improved credit rating from A- to A+ by GCR, become preferred first choice underwriter amongst the general insurance business provider in Nigeria and commitment to improved service delivery to customers and policy holders. We have been looking at our brand visibility nationwide through various brand equity strategic architecture and development of three new products in the retail business and agricultural insurance business,” he assured.

  • 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.