The Nation Newspaper

Tag: net profit

  • Chams records N182.8m net profit in Q1

    Chams Plc recorded significant growths in the top-line and the bottom-line in the first quarter as the identity management and electronic payment company continued its recent rebound.

    Key extracts of the interim report and accounts for the three-month period ended March 31, 2019 showed that turnover rose to N1.26 billion in 2019, as against N739 million recorded in comparable period of 2018. Compared with loss before tax of N129.52 million in first quarter 2018, the company recovered with a pre-tax profit of N182.85 million in first quarter 2019. After taxes, net profit stood at N182.84 million in 2019, as against net loss after tax of N119.16 million recorded in comparable period of 2018.

    The first quarter performance sustained Chams’ growth trajectory after the company recovered from a loss of N1.27 billion in 2017 to a profit of N380 million in 2018.

    Audited report and accounts of Chams for the year ended December 31, 2018 showed that the company’s total assets rose by 10 per cent to N5.25 billion in 2018 as against N4.77 billion in 2017. Total liabilities also reduced by 14 percent to N3.60 billion in 2018 compared with N4.20 billion in 2017. For the first time in several years, earnings per share turned positive at a modest 7.0 kobo.

    The company’s profit net profit margin increased on the back of 54 per cent growth in revenue while finance expenses declined by 34 per cent. Turnover grew by 54 per cent due to increased income from Identity management services, sales, maintenance of Bank Verification Number (BVN) services, supply of cards, sales of the Access control as well as income from switching service. The report also showed significant increase in other operating income due to amount recovered from impaired receivables and rental income.

    Chams had in 2018 restructured its operations for global competitiveness, including a change in business model, placing premium on identity management and introduction of innovative products and services.

    Group Managing Director, Chams Plc, Mr. Femi Williams said the results showed improvement in internal efficiency and the positive effects of the management’s determination to revamp the company’s operations for enhanced profitability in other performance indicators.

     

     

  • Prestige Assurance’s net profit drops by 20%

    Prestige Assurance Plc suffered contraction in its profitability in 2018 despite considerable growth in the insurance company’s top-line. Net profit dropped by 20.3 per cent to N423.8 million in 2018 despite 37.7 per cent growth in gross premium to N4.66 billion.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that Prestige Assurance’s gross premium increased from N3.39 billion in 2017 to N4.66 billion. Profit before tax however decreased from N697.99 million in 2017 to N645.43 million in 2018. After taxes, net profit dropped from N531.84 million in 2017 to N423.8 million in 2018. With these, earnings per share declined from 9.90 kobo in 2017 to 7.89 kobo in 2018.

    Prestige Assurance had undergone a major capital restructuring in 2018. The insurance company had in June 2018 concluded share reconstruction exercise that resulted in cancellation of about 1.6 billion ordinary shares of 50 kobo each. The reconstruction was undertaken to remove bubble assets.

    Under the share reconstruction, Prestige Assurance had reduced its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This led to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance had stated that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction would reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction would allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Shareholders of the insurance company had on Friday, August 18, 2017 at its 47th annual general meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Prestige Assurance in November 2018 distributed 1.53 billion ordinary shares of 50 kobo each to its shareholders as bonus shares, almost restoring 1.6 billion ordinary shares that it had cancelled under a recent capital restructuring.

    Prestige Assurance distributed bonus shares of 41 ordinary shares of 50 kobo each for every 100 ordinary shares of 50 kobo each held as at the close of business on November 27, 2018.

    With then current issued outstanding shares of 3.817 billion ordinary shares of 50 kobo each, Prestige Assurance issued 1.53 billion ordinary shares on the basis of 41 shares for 100 shares.

    The company capitalised N782.57 million from its share premium account to pay for the new shares issuance. The scrip issue increased the company’s issued share capital from N1.91 billion or 3.82 billion ordinary shares to N2.69 billion or 5.38 billion ordinary shares.

    Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write all classes of non-life insurance in Nigeria. In order to reflect the majority shareholding of the Nigerian public in the company, its name was changed to Prestige Assurance Plc on September 24,1992 in line with the indigenisation decree passed by government of Nigeria. After successful recapitalisation in 2007 and subsequent rights issue in 2015, Prestige Assurance is currently a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has majority equity stake of 69.5 per cent shareholding.

  • Afreximbank grows net profit by 25% to $275.9m

    African Export-Import Bank (Afreximbank) grew its net profit by 25 per cent to $275.9 million in 2018 as the bank showed steady growths in key performance indicators.

    The audited report and accounts for the year ended December 31, 2018 showed that Afreximbank’s net profit rose from $220.5 million in 2017 to $275.9 million in 2018.

    The results showed that the bank’s total assets grew by 13 per cent from $11.91 billion 2017 to $13.42 billion in 2018, due mainly to growth in net loans and advances, which went up 30.3 per cent.

    President, African Export-Import Bank (Afreximbank), Prof. Benedict Oramah said that the performance in 2018 was a reflection of the strength of Afreximbank’s underlying business and restated commitment to driving its strategic objectives, to strong orderly growth in assets and earnings.

    He noted that Afreximbank, which implements its programmes and facilities through five-year strategic plans, began implementing its fifth strategic plan, dubbed “Impact 2021, Africa Transformed”, in 2018.

    The five-year strategy is anchored on four pillars including improving intra- Africa trade; facilitating industrialisation and export development; strengthening trade finance leadership; and improving financial soundness and performance.

     

     

  • CCNN doubles net profit to N4b in third quarter

    Cement Company of Northern Nigeria (CCNN) Plc has doubled its bottom-line in the third quarter. The Sokoto-based company rode on the back of strong growth in sales and improved cost management to increase returns to shareholders.

    Key extracts from the nine-month report for the period ended September 30, 2018, showed that the cement firm grew its profit before tax from N2.86 billion in third quarter 2017 to N5.73 billion in third quarter 2018. After taxes, net profit also doubled from N2.04 billion to N4.10 billion. Earnings per share thus doubled from N1.62 to N3.19 per share.

    Total turnover had grown from N13.63 billion in third quarter 2017 to N19.57 billion in third quarter 2018. Cost of sale increased from N8.40 billion to N10.94 billion. With these, gross profit had risen from N5.23 billion in 2017 to N8.63 billion in 2018.

    The third quarter results triggered a rally in the share price of the cement company on Monday. CCNN’s share price rose by 9.24 per cent to N17.15 per share, almost on the 10 per cent daily ceiling for price change at the Nigerian Stock Exchange (NSE).

    The CCNN had distributed N1.57 billion to shareholders as cash dividend for the 2017 business year as its net profit grew by 157 per cent. Shareholders received a dividend per share of N1.25 for the 2017 business year. The firm did not pay dividend for the 2016 business year.

    Key extracts of the audited report and accounts of CCNN for the year ended December 31, 2017 had shown significant growths in sales and profitability. Turnover rose by 39 per cent from N14.09 billion in 2016 to N19.59 billion in 2017. Gross profit nearly doubled from N4.94 billion in 2016 to N7.61 billion in 2017, representing an increase of 94 per cent. Profit before tax jumped by 141 per cent from N1.74 billion in 2016 to N4.20 billion in 2017. After taxes, net profit also leapt by 157 per cent to N3.22 billion in 2017 as against N1.25 billion in 2016. Earnings per share thus improved correspondingly from N1 in 2016 to N2.57 in 2017.

    CCNN and Kalambaina Cement Company- a wholly-owned subsidiary of BUA Cement Company Limited, recently concluded a business combination that strengthened the CCNN as Northwest Nigeria’s largest cement firm.  Both the CCNN and Kalambaina Cement are based in Sokoto. The CCNN has a 500,000 metric tonnes per annum cement plant, while Kalambaina Cement has a 1.5 million metric tonnes per annum plant, making a combined capacity of 2.0 million metric tonnes per annum. Kalambaina Cement plant uses alternative fuel such as coal, heavy oils and gas and it is expected to help solve the power problem with limited downtime and further opportunities for growth and expansion.

    The CCNN and Kalambaina Cement Company have related core investor. Damnaz Cement Company Limited holds 50.7 per cent majority equity stake in the CCNN. Alhaji Abdul Samad Rabiu holds the majority equity stake in Damnaz, while his company-BUA International Limited, holds the remaining minority stake in Damnaz.

    The CCNN Managing Director,  Yusuf Binji, an engineer, said the merger would position the CCNN for better competitiveness within its home market and also enable it to utilise the more modern plant and equipment of the Kalambaina Cement to boost its market penetration and export potential.

    According to him, the merger provides a compelling opportunity to capture significant synergies and create value for the benefit of shareholders of both firms in the form of stronger competitive position of the enlarged company, economies of scale, enhanced operations and administrative efficiencies, which are expected to accrue.

  • Sterling Bank grows net profit by 39% in Q3

    Sterling Bank Plc sustained an impressive performance in the third quarter as strong top-line growth and efficient credit risks and cost management led to 39 per cent growth in net profit during the nine-month period.

    Key extracts for the nine-month period ended September 30, 2018 released yesterday at the Nigerian Stock Exchange (NSE) showed that Sterling Bank grew gross earnings by 21 per cent and profit after tax by 39 per cent. All major performance indices recorded double-digit growth, bucking the generally low trend in the banking sector.

    Gross earnings rose by 21.1 per cent to N114.6 billion in third quarter 2018 compared with N94.6 billion recorded in comparable period of 2017. The top-line performance was driven by growths in both interest and non-interest incomes. Non-interest income rose by 31.2 per cent from N16 billion to N21 billion. Net interest income increased by 7.8 per cent from N36.9 billion to N39.8 billion. Net operating income thus improved by 26.3 per cent to N57.2 billion in third quarter 2018 as against N45.3 billion in third quarter 2017.

    The bank sustained steady growth in profitability as profit before tax grew by 29.5 per cent N8.5 billion as against N6.5 billion in corresponding period of 2017. After taxes, net profit rose by 39 per cent from N5.9 billion to N8.2 billion. Earnings per share thus improved from 21 kobo to 28 kobo.

    Underlying ratios also showed improvement in the intrinsic value of the bank. Pre-tax return on average equity improved from 9.6 per cent in third quarter 2017 to 10.8 per cent in third quarter 2018. Post-tax return on average equity also increased from 8.6 per cent to 10.4 per cent. Return on average assets was steady at 1.0 per cent while cost of risk improved from 1.8 per cent to 0.8 per cent.

    The balance sheet spread also showed increasing acceptance of the bank’s brand and continuing supports of the bank to the growth of the national economy. Customer deposits increased to N723.2 billion by September 2018 from N685.0 billion in December 2017. The bank’s net loans and advances increased by 10.7 per cent to N662.0 billion from N598.0 billion in December 2017. Total assets improved to N1.08 trillion as against N1.07 trillion recorded at the beginning of the year while shareholders’ funds increased from N102.9 billion in December 2017 to N106.2 billion in September 2018.

    The bank’s Liquidity Ratio (LR) improved from 30.5 per cent in December 2017 to 34.4 per cent in September 2018 while Capital Adequacy Ratio (CAR) stood at 11.4 per cent. Non-Performing Loan Ratio (NPLR) improved considerably from 6.2 per cent to 5.4 per cent.

    Chief Executive Officer, Sterling Bank Plc, Mr. Abubakar Suleiman said the bank has been able to sustain its steady growth due to focused implementation of its strategic intent of exceeding customers’ expectations.

    He noted that the robust growth of 31.2 per cent in non-interest income was driven by a growth in trading and transaction banking revenues, as the bank continues to prioritize efficiency of its digital banking platforms to support its retail drive.

    “Our strategic intent to be more customer-focused has continued to yield results; one of such recorded in the last quarter is the increase in the volume of transactions processed through our various electronic platforms since the start of the year. We achieved over one million monthly NIBBS Instant Payment transactions as at July 2018, a 73 per cent increase from the start of the year and expect to see continuing traction in this regard,” Suleiman said.

    He pointed out that the bank’s Series 2 Notes issuance of N19.7 billion under its N39 billion debt issuance program was oversubscribed, adding that the net proceeds of the issuance would be recognized as Tier II capital after the regulatory approval.

    He said the buffer provided by the additional capital would give room for business expansion across the bank’s focus growth areas including health, education, agriculture, renewable energy and transportation sectors.

    “Going into the final quarter of the year, we aim to complete the ongoing implementation of a number of digital-led initiatives in line with our digitization drive. This is expected to further intensify the bank’s retail drive,” Suleiman assured.

     

     

  • Transcorp grows H1 net profit by 161% to N10.9b

    Transnational Corporation of Nigeria (Transcorp) Plc recorded impressive growths across key performance indices in the first half of this year as the conglomerate rode on the back of robust growths in its power and hospitality businesses to drive group performance.

    Key extracts of the interim report and accounts of Transcorp for the half-year ended June 30, 2018 showed that group turnover rose by 58 per cent to N54.09 billion in first half 2018 as against N34.17 billion recorded in corresponding period of 2017. Gross profit grew by 65 per cent to N24.57 billion in first half 2018 as against N14.87 billion recorded in first half 2017.

    Profit before tax jumped by 164 per cent from N4.53 billion to N11.94 billion while profit after tax jumped y 161 per cent to N10.88 billion in first half 2018 compared with N4.16 billion in corresponding period of 2017. Earnings per share also leapt from 3.87 kobo in first half 2017 to 11.60 kobo in first half 2018.

    Transcorp’s group strategic investments include power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses are Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Plc and Transcorp Energy Limited.

    President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh the said the first half results showed the strength of the conglomerate’s business model and its ability to deliver significant value to its stakeholders.

    “At Transcorp, we continuously strive to achieve our long-term targets in each of the sectors we operate in,” Jibunoh said.

    He pointed out that the strong performance was due to the increase in power generation resulting from improved gas supply and increased generation capacity of its subsidiary, Transcorp Power Limited as well as Transcorp’s hospitality business, which maintained its market leadership with occupancy levels that are ahead of competition.

    He added that service excellence is also a core focus of the group, with continuous improvement in delighting its customers noting that the ongoing renovation of the Transcorp Hilton Abuja is part of this service ethos of the group.

    He expressed confidence that the group’s business strategy, strong culture of efficiency and overall corporate governance would sustain the strong growth momentum to ensure the conglomerate close the year on a very strong position.

    The first half performance further reinforced Transcorp’s turnaround after the conglomerate recovered from a pre-tax loss of N5.93 billion in 2016 with a pre-tax profit of N12.31 billion in 2017. The audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. It reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

     

     

  • Transcorp grows net profit by 161% to N10.9b

    Transnational Corporation of Nigeria (Transcorp) Plc recorded impressive growths in turnover and profitability in the first half with net profit rising by 161 per cent to about N10.9 billion.

    Key extracts of the interim report and accounts of Transcorp for the six-month period ended June 30, 2018 showed that turnover rose from N34.17 billion in first half 2017 to N54.09 billion in first half 2018. Profit before tax jumped by 163.6 per cent to N11. 94 billion in first half 2018 as against N4.53 billion recorded in comparable period of 2017.

    After tax, net profit grew by 161.2 per cent from N4.16 billion in 2017 to N10.88 billion in 2018. Earnings per share also leapt from 3.87 kobo in first half 2017 to 11.60 kobo in first half 2018.

    The first half performance further reinforced Transcorp’s turnaround after the conglomerate recovered from a pre-tax loss of N5.93 billion in 2016 with a pre-tax profit of N12.31 billion in 2017. The audited report and accounts of Transcorp for the year ended December 31, 2017 showed that turnover rose by 35 per cent from N59.42 billion in 2016 to N80.28 billion in 2017. Gross profit increased by 21 per cent to N36.42 billion in 2017 compared with N30.17 billion in 2016. Operating profit increased by 25 per cent from N20.72 billion in 2016 to N26.03 billion in 2017.

    Foreign exchange loss reduced to N4.55 billion in 2017 as against N18.7 billion in 2016 while net finance cost also improved from N26.64 billion to N13.73 billion. The company made provisions for N1.7 billion taxes in 2017 compared with tax credit of N4.80 billion received in 2016. With these, it reversed from a loss before tax of N5.93 billion in 2016 to profit before tax of N12.3 billion in 2017. After, taxes, net profit stood at N10.61 billion in 2017 as against net loss of N1.13 billion in 2016.

    The balance sheet position of the conglomerate also improved in 2017 as total assets rose by 23 per cent to N285.52 billion in 2017 as against N232.16 billion in 2016. Shareholders’ funds rose by 11 per cent from N86.45 billion in 2016 to N95.71 billion in 2017.

    Transcorp Plc Chief Executive Officer, Mr. Adim Jibunoh said the conglomerate’s businesses are in good position to sustain growth going forward.

    “We are confident of improved fundamentals going forward, as we increase our available generation capacity to above 800 megawatts by year-end taking advantage of improving gas situation. We equally expect to benefit from the upside of the new improved infrastructure upon completion of our upgrade project in Transcorp Hilton Abuja. The upgrade project is currently on track,” Jibunoh said.

    Transcorp’s group strategic investments include power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses are Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Plc, Teragro Commodities Limited and Transcorp Energy Limited.

  • Flour Mills grows net profit by 54% to N13.6b

    •Firm declares N4.1b dividend

    Flour Mills of Nigeria Plc grew its net profit by 54 per cent to N13.6 billion in the immediate past year, riding on the back of strong sales and improved cost management.

    Key extracts of the audited report and accounts of the company for the year ended March 31, 2018 showed that profit after tax rose from N8.84 billion in 2017 to N13.62 billion in 2018. Profit before tax had risen from N10.47 billion to N16.54 billion. Group turnover increased from N524.46 billion in 2017 to N542.67 billion in 2018. Earnings per share thus improved from N3.03 in 2017 to N4.83 in 2018.

    The board of directors of the company has recommended payment of a dividend per share of N1 to shareholders as cash dividend for the 2018 business year, the same amount distributed for the 2017 business year.

    Flour Mills during the last quarter of the business year raised N40 billion in new equity funds through a rights issue. It floated a rights issue of 1.476 billion ordinary shares of 50 kobo each at N27 per share.

    The success of the new capital raising had placed the flour mill group in a better position to strengthen its balance sheet and support business growth.

    Its Chairman, Mr. John Coumantaros, had said the rights issue would be used primarily to pay down some of the company’s outstanding short-term debt in order to reduce its finance costs, which have increased significantly in recent times.

    He said the company would maintain and expand its market leadership across all its five core businesses and value chains.

    He outlined that Flour Mills would improve route, extend its distribution footprint and launch new innovative consumer products like Gari, Margarine, spread, soya and vegetable oil, among others.

    He added that the company will continue to focus on supply chain security through import substitution and value chain diversification.

    “We will also continue to improve in our processing facilities and manufacturing excellence, which will lead to productivity and efficiency gains,” Coumantaros said.

    Group Managing Director, Flour Mills of Nigeria Plc, Mr. Paul Gbedebo, explained that the rights issue is part of the group’s strategy to grow and build long-term value for all stakeholders.

    “The proceeds from the rights issue will be used to strengthen the company’s capital base by deleveraging our balance sheet, supporting our working capital needs and positioning the company to exploit value-accretive opportunities, while giving greater operational and financial flexibility to ensure business growth and continuity,” Gbedebo said.

    He noted that Flour Mills has a long and rich history in Nigeria and continues to evolve and become the leading food and agro-allied group in Africa.

    According to him, Flour Mills’ commitment to sustainability as a corporate strategy is shown in different levels of its operations and activities, while the company’s customer-centric culture remains focused on both product and process innovation aimed at building value for all stakeholders.

  • Net profit hits N19.7b as Oando defies odds

    Oando Plc grew its net profit by 405 per cent to N19.7 billion in 2017, sustaining a positive trend of good performance over the past five quarters.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 released at the Nigerian Stock Exchange (NSE) at the weekend showed that gross profit rose by 81 per cent from N48.6 billion in 2016 to N88.1 billion in 2017. Profit before tax stood at N20.76 billion in 2017 as against a pre-tax loss of N62.96 billion in 2016. Profit after tax jumped by 405 per cent from N3.9 billion in 2016 to N19.8 billion in 2017. But group turnover declined by 13 per cent from N569.2 billion in 2016 to N497.6 billion in 2016. Net debt reduced to N217.1 billion in 2017 as against N230.6 billion in 2016.

    Group Chief executive Officer, Oando Plc, Mr. Wale Tinubu, said 2017 was an important and positive milestone for the company, despite the challenges in the operating environment and regulatory issues that led to the institution of forensic audit of the company by the Securities and Exchange Commission (SEC).

    “The business recorded a year-end profit of N19.8 billion; a culmination of four consecutive quarters of positive results, validating our promise to shareholders of returning to and maintaining profitability. This comes in the wake of oil prices on an upward trajectory, an improved operating environment, the exit of a 13-month long recession and, most importantly, the continued strengthening of our business model through the effective implementation of our strategic initiatives of growth through our dollar earning upstream portfolio; deleverage through asset divestments and the expansion of our oil export trading business,” Tinubu said.

    He said that while the company has continued to provide full support to the SEC, hoping for a smooth and speedy conclusion of its investigation, it remains optimistic on its performance in 2018.

    “We have commenced 2018, buoyed by our unrelenting commitment to our strategy and remain confident in its success,” Tinubu said.

    Interim report and accounts of Oando for the first quarter ended March 31, 2018 also released at the weekend showed that turnover rose from N138.27 billion in the first quarter 2017 to N160.55 billion in first quarter 2018. Gross profit doubled from N13.4 billion in first quarter 2017 to N27.94 billion in first quarter 2018. Operating profit also doubled from N7.62 billion to N14.88 billion. The company recorded a pre-tax profit of N6.51 billion in first quarter 2018 compared with pre-tax loss of N647.03 million. After taxes, net profit stood at N4.19 billion in first quarter 2018 compared with N1.71 billion in 2017.

    Despite the challenges it experienced in 2017, Oando recorded some operational highlights. In the upstream sector, it hit an average production of 40,188 boe/day in 2017 compared with 43,503 boe/day in 2016. This was primarily due to significant reduction in gas production and delivery caused by the rupturing of Gas Transmission System (GTS-4) gas line and pipeline and terminal constraints at its OMLs 60 to 63.

    The upstream business recorded a net profit of N26.33 billion in 2017 as against N91.83 million in 2016. This increase in profitability was primarily due to improved revenue between the periods, and increase in gains on financial instruments which were offset by lower tax recoveries.

    In the midstream, Oando’s affiliate, Axxela, recorded an 11 per cent increase in natural gas deliveries in 2017. This achievement was in spite of restricted gas supply in first half 2017 due to the sabotage of upstream gas supply facilities by militants.  The construction of Phase IV of the pipeline network in the Greater Lagos Industrial Area and the Central Horizon Expansion Pipeline in Port Harcourt were completed. These projects expanded the firm’s distribution infrastructure and enabled it reach a wider demand area for delivery of gas, consequently increasing its customer base to 175 customers. The Tincan HDD project was successfully concluded; a project which involved restoring leakages at a pipeline that has two river crossings so as to reconnect existing customers to the network.

    In the downstream, Oando’s trading subsidiary sustained growth in its crude oil business, resulting in a nine per cent increase in traded volumes. The company continues to solidify its relationships via access to over $700 million of immediately available structured trade finance facilities.

    SEC recently lifted the technical suspension placed on the company’s shares after 175 days. By the weekend when the company released its 2017 results, its share price had reached N9.15, a 65 per cent increase in 21 days.

    The Nigerian National Petroleum Corporation (NNPC) also recently announced that a consortium consisting of Oando Plc and OilServe Limited had been awarded the Engineering, Procurement, Construction (EPC) mandate for the construction of a gas pipeline stretching from Ajaokuta to Abuja as part of the Ajaokuta-Kaduna-Kano Pipeline. The pipeline is a section of the Trans-Nigerian Gas Pipeline under the gas infrastructure blueprint designed to enable the industrialisation of the Eastern and Northern parts of Nigeria and also enable connectivity between the East, West and North, which is currently non-existent.

     

  • Sterling Bank grows net profit by 65% to N8.5b in 2017

    Sterling Bank Plc recorded strong growths in the top-line and bottom-line in 2017 as the commercial bank rode on the back of widening income sources and improving operating efficiency to increase net earnings by 65 per cent.

    Key extracts of the audited report and accounts of Sterling Bank for the year ended December 31, 2017 released at the Nigerian Stock Exchange (NSE) yesterday showed considerable improvements in key performance indices.

    The report showed that gross earnings rose by 19.8 per cent from N111.4 billion in 2016 to N133.5 billion. Profit before tax increased to N8.61 billion in 2017 as against N6.0 billion in 2016. Profit after tax grew by 65 per cent from N5.16 billion in 2016 to N8.52 billion in 2017.

    Top-line performance was driven by growth in both interest and non-interest income, which rose by 11.3 per cent and 87.8 per cent respectively. The bank’s net operating income increased by 7.9 per cent while cost-to-income ratio improved by 260 basis points to 71.5 per cent. Customer deposits increased by 17.1 per cent to N684.8 billion in 2017 as against N584.7 billion in 2016. Shareholders’ funds rose by 20.2 per cent to N102.9 billion in 2017 as against N85.7 billion in 2016, reaffirming the bank’s commitment to returning value to its shareholders.

    The board of directors of the bank has recommended distribution of N575.8 million as cash dividend for the 2017 business year, representing a dividend per share of 2.0 kobo.

    Chief Executive Officer, Sterling Bank Plc, Mr. Abubakar Suleiman, said the 2017 performance that highlighted positive performance across key financial indices despite challenging operating conditions reaffirms the bank’s underlying institutional strength.

    “The non-interest banking business continued to gain significant traction, adding positively to our bottom-line. This performance underscores the commitment of the entire team to our corporate goals and the resilience of our business model,” Suleiman said.

    He said the bank maintained a disciplined and prudent approach to loan growth in line with its risk management framework, a development which resulted in a significant improvement in asset quality as reflected in the reduction of non-performing loan ratio by 370 basis points to 6.2 per cent.

    He noted that the bank continued to scale its business with support from a well-diversified funding base, pointing out that for the first time, the bank recorded N1.1 trillion in total assets from N834.2 billion in 2016, representing a 28.7 per cent growth.

    According to him, the bank also gained traction in its retail drive with an active customer base that exceeded three million resulting in 17.1 per cent growth in deposits. During the year, the bank’s liquidity and capital adequacy ratios remained sound and well above the required regulatory benchmark at 33 per cent and 12.2 per cent respectively. The bank prioritized efficiency across its businesses as it progressed on its digital transformation journey by successfully launching “Specta”, an innovative online lending platform which offers personal loans within five minutes. It also invested in a first-rate business process management tool to optimize operating efficiency while providing its customers with ‘best in class’ service.