The Nation Newspaper

Tag: grows

  • CSCS grows profit by 56% to N4.8b

    CSCS grows profit by 56% to N4.8b

    Central Securities Clearing System (CSCS) Plc grew its profit by 56 per cent as turnover rose by 34 per cent.

    Audited report and accounts of CSCS for the year ended December 31, 2013 showed that profit before tax rose from N3.09 billion in 2012 to N4.82 billion in 2013. Total turnover grew by 34 per cent from N5.17 billion in 2012 to N6.89 billion in 2013. The company paid a dividend of 22 kobo per share.

    Managing director, Central Securities Clearing System (CSCS) Plc , Mallam Kyari Bukar, said the company achieved good financial results in 2013.

    “Our operating income for the year stood at N6.9 billion, that is a 34 per cent increase from the previous year’s operating income of N5.2 billion. Profit before tax for the year under review was N4.82 billion as against N3.09 billion from the previous year,” Bukar said.

    According to him, total revenue grew by 34 per cent during the year while operating expenditure decreased slightly by one per cent due to efficient cost management approach adopted by the company.

    He noted that the company’s 2013 financial statements was prepared in line with International Financial Reporting Standards (IFRS) as prescribed by the Financial Reporting Council of Nigeria (FRCN) and the Securities & Exchange Commission (SEC), having first adopted the IFRS in 2012.

    CSCS, the clearing, settlement and depository company for the Nigerian stock market, recently listed its shares on the NASD Plc, providing investors with opportunity to trade on their shares.

    NASD Plc is a registered over-the-counter (OTC) trading platform for unquoted securities including equities and bonds.

    CSCS, a subsidiary of the Nigerian Stock Exchange (NSE), listed a total of 5.0 billion ordinary shares of N1 each under the financial industry sector.  CSCS is the 16th securities and eighth financial industry security to be admitted to trade on the NASD.

    With the listing of CSCS on the market, operators and investors can expect to see better price discovery and more transparency around transactions.  It also makes the security more acceptable to portfolio investors who before now only had an informal reference price.

     

     

  • PZ Cussons grows Q3 profit by 32% to N5.2b

    PZ Cussons Nigeria Plc has become more profitable in recent period as latest operational report showed substantial increase in the profit-margin of the conglomerate.

    Key extracts of the interim report and accounts of PZ Cussons for the nine-month period ended February 28, 2014 showed that average pre-tax profit margin improved to 9.83 per cent by February 2014 as against 7.59 per cent recorded in comparable period of 2013.

    The improvement in the cost management enabled the conglomerate to optimize its modest sales growth of 2.04 per cent into 32.3 per cent increase in pre-tax profit. Group turnover stood at N52.59 billion in 2014 as against N51.54 billion in 2013. Profit before tax meanwhile rose from N3.91 billion to N5.17 billion. Profit after tax also rose by 33.3 per cent from N2.90 billion to N3.87 billion.

    PZ Cussons had recently distributed N5.16 billion from its general reserve as a special dividend to shareholders. A breakdown of the special dividend indicates that shareholders will receive N1.30 per share.

    PZ Cussons had also, for the first time, paid an interim dividend of about 20 kobo after posting 53 per cent increase in profit for the half year ended November 30, 2013. Gross turnover rose from N31 billion in 2012 to N32.46 billion in 2013. Profit before tax rose by 53 per cent to N3.1 billion from N2 billion. Profit after tax also rose from N1.515 billion to N2.317 billion.

    PZ Cussons had ridden on the back of improved cost management and internal efficiency to double net earnings in the immediate past year, prompting the company to distribute N2.22 billion as dividends to shareholders. The gross dividend of N2.22 billion represented a dividend per share of 56 kobo, an increase of 30 per cent on 43 kobo paid for the previous year.

    Audited report and accounts of PZ Cussons for the year ended May 31, 2013 showed that while sales slipped by 1.12 per cent, profits before and after tax jumped by 77.6 per cent and 110 per cent respectively. The improvement in the bottom-line impacted on the underlying returns to shareholders as earnings per share increased from 61 kobo in 2012 to N1.23 in 2013.

    Turnover closed May 2013 at N71.34 billion as against N72.15 billion recorded in 2012. Profit before tax meanwhile rose from N4.31 billion to N7.65 billion. Profit after tax also doubled from N2.54 billion to N5.32 billion.

    The performance in 2013 represented a major recovery for the fast moving consumer good company, which had suffered significant decline in the previous year.

    Audited report and accounts for the year ended May 31, 2012 had shown turnover of N72.16 billion as against N65.9 billion in 2011. Gross profit however dropped to N16.18 billion as against N18.45 billion. Profit before tax also halved to N4.31 billion compared with N8.03 billion in 2011 just as profit after tax dwindled from N5.7 billion to N2.5 billion.

    PZ Cussons appeared to have benefitted from extensive cost restructuring and internal efficiency management.

    With costs constraints and efficiency issues becoming evident in its performance, the global conglomerate had started global restructuring of its operations including closure of manufacturing operations in several countries and concentration in some countries including Nigeria.

    The global restructuring project was sequel to high costs of operations that have increasingly impacted on the global profitability of the conglomerate.

    According to a document on the global restructuring operations with details for West Africa, PZ Cussons group developed the global restructuring programmes to ensure that its supply chain cost base remains at a competitive level given sustained rise in raw material costs together with significant wage inflation in emerging markets.

  • Budget 2013 row grows

    Budget 2013 row grows

    A fresh row has broken out between the Senate and the House of Representatives over the passage of the 2013 budget.

    The Senate is ready to pass the budget before the end of the month, but the House of Representatives is insisting on full implementation of this year’s budget before passing the 2013 Appropriation Bill.

    The House wants the Executive to extend the 2012 fiscal year to January for it to implement this year’s budget effectively.

    Attempts to iron out the differences have not succeeded. The House is insisting that the execution of this year’s budget has not reached 65 per cent.

    Besides, there are fears over the likely mismanagement of the fourth quarter allocation, which is just being released.

    Only N170billion of the N300billion fourth quarter allocation has been cash-backed by the Ministry of Finance.

    A principal officer of one of the chambers, who spoke in confidence, said: “We are back in the trenches, with the Senate and the House taking different positions on the passage of the 2013 budget.

    “Although all members of the National Assembly are aggrieved over the poor implementation of this year’s budget, Senate President David Mark has urged committees to fast track the passage of the budget. He met with the chairmen.

    “Mark, who admitted that the Executive has a lot of shortcomings on the implementation of this year’s budget, said the country has to move forward.

    “So, the Senate has decided to pass the 2013 Appropriation Bill – in the interest of the nation and in line with the rectification of the appropriation calendar which will now run from January to December.”

    Despite Mark’s intervention, the Northern Senators Forum on Tuesday night met in Abuja for about two hours on the budget.

    It was gathered that most senators at the session were unhappy that the Executive had been misleading the nation on the percentage of the budget implementation for 2012.

    It was learnt that the senators identified their grouses as follows: poor execution of the 2012 budget; non-release of funds for capital projects and mounting debts, which has risen to $10billions; among others.

    A member of the Northern caucus, who spoke on the session by Northern Senators, said: “ We are all not happy at all with the Executive. We took note of the plea by the President of the Senate but we are watching what the House of Representatives will do. At the end of the day, we might pitch tent with the House members if they have convincing reasons.

    “Do not forget that the two chambers must harmonise their positions before the budget can be passed.”

    A principal officer of the House, who confided in our correspondent last night, said: “We won’t subject the House to the blanket passage of the 2013 Appropriation Bill into law.

    “We want to measure significant implementation of the 2012 budget before passing the 2013 bill into law. We are calling for a window of one month to extend the fiscal year to January 2013 to monitor the use of the fourth quarter allocation and comprehensively evaluate the 2012 budget.

    “If the Executive and the Senate can agree to one month extension of the fiscal year, we will pass the 2013 Appropriation Bill into law. At present, we have a situation whereby fourth quarter funds will go into unauthorised hands.

    “While the fourth quarter allocation has not been fully released, the Executive just sent in a N162billion supplementary budget which is late in the day. How can the fiscal year end on December 31, 2012? Who will monitor the use of these funds? The funds may end up in private accounts of those milking the system. We want to assert our constitutional rights to appropriate and ensure judicious use of funds.

    “There is no meeting point with the Senate on this extension of the fiscal year by one month.”

  • Rivers, Bayelsa row grows over oil wells

    Rivers, Bayelsa row grows over oil wells

    THE war of words between Rivers and Bayelsa states over some disputed oil wells continued yesterday.

    Bayelsa accused Rivers of insulting the Presidency in a statement containing frivolous allegations, claiming that the disputed Soku/Oluasiri oil wells belong to it.

    In a statement by its Commissioner for Information and Orientation Deacon Markson Fefegha, Bayelsa alleged that Rivers intended to instigate crisis among the Ijaw brothers in Kalabari and Nembe communities.

    It said despite the provocation, Bayelsa would ensure a peaceful resolution of the issue.

    In an advertorial last week, the Rivers State government said: “The Rivers State Government wishes to state that it has and will continue to accord the highest respect to the person and office of His Excellency, the President, but will never ever submit to any attempt, as is being orchestrated now, to be intimidated in its responsibility of preserving the property and resources that rightly belong to the people of River State.

    “The 11th edition of the administrative map, clandestinely prepared by the National Boundary Commission and the Federal Surveyor-General’s office in 1999, but published in 2000, strangely shifted the boundaries between Rivers and Bayelsa states from the initial boundary between Kalabari and Nembe, west of the Santa Barbara River, to San Bartholomew River, contrary to the delineation by all preceding administrative maps of Nigeria and all historical records.

    “The Supreme Court Judgment is clear-that it could not decide jthe boundary based on the erroneous 11th Edition Map the Bayelsa State Publication is heavily relying on, but that it will await the final delineation to be heralded by the promised 12th edition of the Map.”

    Fefegha said: “For all intents and purposes, the said press statement of the Rivers State Government on the above issue was obviously intended to create crisis amongst the peace-loving Ijaw people in Rivers and Bayelsa states and garner public sympathy for Rivers State.

    “The said statement, which was signed by the Rivers State Commissioner for Information, on the instruction of the Rivers State Governor amongst others, accused the presidency of mischief.

    “This is not only disrespectful and insulting, it also smacks of insubordination and arrogance on the part of the leadership of the Rivers State Government.

    “While this matter remains in the front burner of public discourse, it is advisable for the Rivers State Government to stop denigrating the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria because the Office of the President is the highest institution in the land.

    “Public Office holders must at all times protect the sanctity of public institutions and not to desecrate same the way the leadership of Rivers State did and is still doing.

    “The government of Bayelsa State therefore urges the Rivers State Governor and his appointees to refrain from making inciting and inflammatory remarks capable of triggering off inter communal crises among our people.”

    Fefegha said Bayelsa had restrained Nembe people from responding to “the threats and drums of war” by the Kalabari people as this could lead to great disaffection between the two communities.

    “We also urge our fellow Ijaw brothers and traditional rulers to refrain from being used as tools to cause disunity between the people of Rivers and Bayelsa states over the derivation matter because derivation is purely a state matter and not a matter between communities,” he said.

    The commissioner recalled that Rivers filed two suits against Bayelsa at the Federal High Court and the Supreme Court in order to assert its purported ownership of the oil wells/ oil field but both actions were struck out.

    The statement reads: “Soku is a village in Rivers State while the oil wells/ oil field and the flow station are located in the Oluasiri clan in Nembe Local Government Area of Bayelsa State. The name Soku oil wells/oil field was wrongly given by Shell Petroleum Development Company Ltd (SPDC) since Soku village was their operational base at that time.

    “This is not peculiar to Soku. For example, the Idu oil wells/oil field is named after a town in Ekpeye land in Ahoada East Local Government Area of Rivers State while the oil field is actually located in Biseni land of Bayelsa State. Similarly, the Omoku west oil field is in Biseni land of Bayelsa State but Omoku is a town in Rivers State.

    “The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in its report on the Familiarisation/Verification visit to oil producing states, volume 1, Main Report, August 2006 in Chapter 3, page 30 also acknowledged the above anomaly when it stated as follows:

    “‘The Bayelsa/Imo/Abia State Governments complained that the naming of oil fields was often done arbitrarily without any regard to the culture and particular environment of the people where the wells or fields are located. This has given rise to wrong attribution by relevant agencies.’

    “Incidentally, Soku village in Rivers State is about 10 km, as the crow flies, from the flow station while the Oluasiri / Soku oil wells/ field is surrounded by various Oluasiri villages of Nembe Local Government Area in Bayelsa State.

    “The Special Presidential Committee on verification of oil wells in volume one of its report on disputed oil wells of December 2000 (P; 25/26) after a painstaking field verification process and hearing from both states stated and recommended as follows:

    “‘The team relied on the legal notice captioned: ‘The Eastern Region Local Government Law, 1955 E.R. NO 26 of 1955. Instrument Establishing the Nembe District Council’ tendered by Bayelsa State on Pages 40-41 of its submission. It should be noted that while the Kalabaris of Rivers State call the area Soku, the Nembe people of Bayelsa State call it Oluasiri which is one of the councils mentioned in paragraph 5 of the above mentioned instrument. In the light of the above, it is recommended that the production from Soku Oil Field be attributed to Bayelsa State.’

    “It is worthy of note that the Rivers State Government had in its white paper (1993) titled: Rivers State Government Report of the Judicial Commission of Enquiry into the Disturbances / Conflict between Akuku-Toru and Brass LGA of Rivers State under the Chairmanship of Hon Justice Peter B. Akere rejected the use of River Santa Babara as the boundary between the Kalabari people of Rivers State and the Nembe people of Bayelsa State.

    “The Rivers State Government in the said white paper specifically stated as follows: ‘The commission recommends that: (i) Until that stage is reached, a temporary map which reflects the Rivers Santa Barbara as an administrative boundary should replace Exhibit SG 1. Government: (a) Rejects the recommendation of the commission in B (2) (i) above…’

    “The Rivers State Government can therefore no longer claim River Santa Babara as the boundary between the Nembe people of Bayelsa State and the Kalabari people of Rivers State and hence the boundary between the two states.

    “Following dispute between the Nembe and Kalabari peoples, J.G. Cousins Acting District Officer of Brass Division acknowledged River San Bartholomew as the boundary between the Nembe and Kalabari people when in his report dated November 1952 titled KALABARI/NEMBE FISHING DISPUTE stated in paragraph 4 as follows:

    “‘…I note that Consul Hopkins fixed the boundary between Nembe and new Calabar (Kalabari). This is mentioned in the report of the commission into the Kula-Nembe boundary dispute presided over by Mr B.G. Smith acting District Officer in 1944, to which I am also referred by the Nembe Chiefs.’ The New Calabar people in the above quotation refer to the present Kalabari people of Rivers State.

    “The 11tth edition of the administrative map of Nigeria, further confirms the fact that River San Bartholomew is the boundary between Nembe of Bayelsa State and new Calabar (Kalabari) of Rivers State which has metamorphosed into the boundary between the two states. “

  • Sterling Bank grows net profit by 64%

    Sterling Bank grows net profit by 64%

    Sterling Bank Plc continued its impressive performance in the third quarter almost doubling its gross earnings recording a 64 per cent increase in profit after tax.

    Interim report and accounts of the bank for the third quarter ended September 30, 2012 showed substantial growths across key performance indicators, improving prospects for considerable improvement in dividends for the current business year.

    The report indicated 92.6 per cent growth in gross earnings, underlining the success of the bank’s bank-focused business strategy. Interest income doubled by 109.9 per cent while net interest income jumped by 84 per cent. Profit before tax thus rose by 58.5 per cent.

    Sterling Bank grossed N50.74 billion by third quarter 2012 as against N26.35 billion recorded in comparable period of 2011. Interest income leapt to N39.56 billion in 2012 compared with N18.85 billion in corresponding period of 2011. While interest expenses increased from N8.97 billion to N21.37 billion, net interest income also nearly doubled from N9.88 billion to N18.19 billion. Non-interest income increased by 49 per cent to N11.2 billion as against N7.5 billion. Altogether, operating income rose by 78 per cent from N15.9 billion to N28.3 billion.

    With these, profit before tax jumped from N3.01 billion to N4.77 billion. After taxes, net profit distributable to shareholders increased from N2.74 billion to N4.49 billion. Earnings analysis showed earnings per share of 29 kobo for third quarter 2012 compared with 22 kobo in similar period of 2011. At current share price, the net earnings indicated strong double-digit returns for Sterling Bank. It should be recalled that the outstanding issued shares of Sterling Bank had increased in the last quarter of 2011 following issuance of scheme shares to shareholders of the defunct Equitorial Trust Bank, which Sterling Bank had acquired last year.

    Besides, the report showed strong and quality balance sheet with growing deposit base and increasing lending activities underpinned by reduction in the proportion of non-performing loans to total loans 4.8 per cent in December 2011 to 2.4 per cent by September 2012. Customers’ deposits increased from N392.05 billion to N433.98 billion. Loans and advances similarly improved from N164.3 billion to N229.43 billion. Total assets also rose to N564.06 billion from N504.72 billion.

    Commenting on the results, managing director, Sterling Bank Plc, Mr. Yemi Adeola, said the results reflected the continuing success of the bank’s strategic growth initiatives as it continued to draw benefits from the seamless integration of Equitorial Trust Bank.

    According to him, Sterling Bank has been well positioned to capture emerging growth opportunities with customer-centric approach to financial services and products.

    “In line with our forecast, loans and advances grew by 23 per cent to N229.4 billion on the back of our enhanced presence in the corporate banking space. We also grew customer deposits by 13 per cent to N434 billion and added over 22,000 retail accounts. Despite the 400 basis points increase in Cash Reserve Ratio in July, we recorded a 70 basis points reduction in cost of funds to six per cent,” Adeola said.

    He said the performance of the bank showed its underlying strengths, pointing out that the increase in cost-to-income ratio was as a result of one-off merger related expenses.

    He noted that the growth in loans and reduction in non-performing assets were in line with the bank’s objective to grow risk assets as the economy rebounds while focusing on quality growth..

    He assured that directors of the bank were confident they would sustain the performance.

    “In the last quarter of the year, we will consolidate on the progress made thus far and sustain our drive towards building our retail deposits with a view to achieving our corporate goals for year-end,” Adeola assured.