The Nation Newspaper

Tag: Shareholders

  • Agency to pay shareholders $2.5m

    In a much-anticipated announcement, the African Trade Insurance Agency (ATI) has declared that its General Assembly had approved the first-ever payments to shareholders who will get $2.5million.

    ATI made this known at its Annual General Meeting (AGM) held in Abidjan, where the company also announced its record-breaking 2017 financial results for the sixth consecutive year.

    The company’s Chief Executive Officer (CEO), George Otieno noted: “We have been planning for this moment for several years and I am happy to finally announce that we are ready to give something back to our shareholders. This signals our intention to continue showing value to our member-governments and shareholders, while providing non-member-countries and institutional investors an incentive to join.”

    In 2017, ATI recorded gross exposures of USD2.4 billion and, in the same period, the company covered investment and trade activities across the continent valued at USD10 billion. ATI also posted a USD10 million profit representing a 55 per cent increase over 2016.

    ATI owes its strong results in part to growing demand from investors and African governments for their products as the continent continues to position itself as an attractive destination for investors. Africa’s drive to increase trade within its borders is also fuelling ATI’s success.

  • Fidson to raise N4.5b from shareholders

    Fidson Healthcare Plc is to raise N4.5 billion new equity capital by issuing new ordinary shares to its shareholders.

    A regulatory filing at the Nigerian Stock Exchange (NSE) at the weekend indicated that Fidson Healthcare will be issuing 900 million ordinary shares of 50 kobo each to its shareholders at N5 per share. The rights issue will be pre-allotted on the basis of three new ordinary shares for every five ordinary shares held as at the close of business on July 5.

    Last year, the company’s shareholders approved the raise of N6 billion to boost its working capital and support its expansion plan. At the 2017 Annual General Meeting (AGM) , shareholders authorised the board of directors of Fidson Healthcare to “raise further capital of up to N6 billion through an offer whether by way of public offering, rights issue, private and special placement of shares”.

    The meeting also authorised the directors to absorb oversubscription and to convert existing loans due to any person from the company towards payment for any rights or shares subscribed for. Shareholders also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of more 600 million shares of 50 kobo each.

    Fidson Healthcare Plc Chairman, Mr. Felix Ohiwerei, said the new capital would be used to boost working capital that had been negatively impacted by the depreciation of Naira.

    He noted that the company’s new factory had come on stream at the end of 2016 and the company needed more capital to realise its potential and utilise the new factory to full capacity.

    Key extracts of the audited report and accounts of Fidson Healthcare for the year ended December 31, 2017 showed that turnover grew by 84 per cent N7.6 billion in 2016 to N14 billion in 2017. Cost of sales increased by 91 per cent from N3.6 billion in 2016 to N6.9 billion in 2017. Profit before tax rose from N443 million in 2016 to N1.57 billion in 2017. With this, earnings per share increased from 21 kobo in 2016 to 71 kobo in 2017.

    The financial reports showed a 53 per cent increase in total overhead including administrative and selling and distribution expenses, from N3.1 billion in 2016 to N4.7 billion in 2017, which was due to an increase in the marketing and distribution expenses.  Finance cost also increased by 45 per cent from N690 million in 2016 to N1 billion in 2017. The increase in finance cost was mainly due to increased working capital to drive growth and a hike in interest rates from financial institutions. Despite the increase in total cost, the company recorded a 127 per cent increase in operating profit which grew from N1.1 billion in 2016 to N2.5 billion in 2017.

    The board of directors of Fidson Healthcare, however, approved a 300 per cent increase in dividend payout for the 2017 business year. Shareholders will receive a dividend per share of 20 kobo for the 2017 business year, representing an increase of 300 per cent on five kobo dividend per share paid for the 2016 business year. The company had distributed N75 million as cash dividends to shareholders for the 2016 business year.

  • Shareholders laud Dangote Flour Mills’ return to profitability

    Shareholders of Dangote Flour Mills (DFM) Plc at the weekend commended the board and management of the flour-milling company for the strategic initiatives that restored profitability and dividend payment to shareholders.

    Shareholders who spoke at the annual general meeting at the weekend in Lagos said the performance of DFM in recent period represents a new dawn, after many years of losses and no dividend to shareholders.

    President, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, commended the return to profit and dividend payment noting that shareholders invested with the hopes of making returns on their investments.

    A shareholders’ leader, Mr. Sotunde Shopeju, said the return to profitability and declaration of dividends would enhance the welfare and wellbeing of shareholders.

    According to him, with the declaration of dividends, shareholders’ hope and expectations have been met as they will now begin to gain from the proceeds of their investments.

    A shareholders’ right activist, Mr. Nonah Awoh noted that the management of DFM achieved cost reduction through prudent and efficient use of resources which positively reflected in its earnings, profitability and dividend payment.

    He urged the management to continue to work to optimise the company resources.

    Another shareholder, Adeleke Olajimeji also commended the management, urging the company to be more proactive in terms of marketing and branding of its products to increase its brand visibility across the nation.

     

  • Shareholders laud NEM as 2017 results soar

    Nem Insurance Plc shareholders have lauded the underwriting firm as its indices grew on all fronts in the 2017 financial year.

    Aside paying 10 kobo as dividend, the firm posted a gross premium of N13.4 billion, resulting in an increase of 24.7 per cent over the previous period, which was N10.8 billion.

    Profits before Tax (PBT) of the Group and Parent Company for the period under review were N3.09 billion and N3.08 billion, with increases of 44.2 and 41.0 respectively.

    In the same vein, it’s net premium  increased by 15.2 per cent.  The figures for 2017 and 2016 were N9.8 billion and N8.5 billion respectively.

    There was also an increase of 48 per cent of investment income of N709.9 million in 2017 over that of 2016 of N479.5 million.

    Its Chairman, Fidelis Ayebae, who presented the results to shareholders  at the 48th Annual General Meeting  at Premier Hotel, Ibadan said claims and expenses incurred during the year was N1.78 billion, which is an improvement of 33.2 per cent. He stated that the absolute figure for 2016 was N2.7 billion.

    He disclosed that the gross claims ratio for 2017 stood at 37.4, a slight improvement of 1 per cent over the preceding period which was 37.4 per cent.

    He said: “The net claims ratio was 18.2 per cent for the year under review and 31.4 per cent. for the preceding year, an improvement of 42 per cent. The improvement in the ratio was as a result of the good recovery made from our reinsurers. During the period under review there were increases of 26.2 per cent and 28.2 in management expenses for the Group and Parent Company respectively. In 2017 the figures for the Group and Parent Company were N2.98 billion and N2.96 billion while in 2016 the figures were N2.36 billion and N2.31 billion respectively.

    “There were improvements of 47.7 and 21.2 in financial assets and total assets for both the Group and Parent Company over those of the preceding period; while improvements of 31.6 per cent and 31.3 per cent were recorded in total equity for the Group and Parent Company respectively. Earnings Per Share (EPS) for the Group during the year under review was 53 kobo; while that of the preceding year was 34 kobo; an increase of 52.7. The EPS of the Parent Company was 52 kobo, an increase of 49.5 over that of the preceding year which was 35 kobo.”

    On dividend, the Chairman said following the impressive result for the year under review, the Board recommended a dividend of 10 kobo per share. “This is a 25 per cent increase over 8 kobo paid last year. Human Capital he management recognises that Human capital is priceless; hence much importance is placed on training and good welfare package for our staff. Juring the year, over 90 of members of staff were sent on local and international trainings in orderto better their performances on the job. In addition, members of staff who performed excellently were promoted during the year,”he said.

    Group Managing Director, Tope Smart on his part added that despite the challenging competitive operating environment, “our focus on industry leadership remained unwavering”.  Smart stressed that one of the ways of doing it is brand differentiation.

    “We have continued to delight our numerous customers by providing them with unparalled services and solutions thereby consolidating our position with them.  Our service delivery mechanism, which is anchored on our core values of humility, integrity, discipline, excellence, empathy and courage (HIDEEC) has helped us in no small measure in our brand differentiation initiative.

    “Our Associate in Ghana, RegencyNem Insurance  Ghana Limited is riding on the synergy of the merger as the company is presently making waves in the Ghanian Insurance Industry, and is set to contribute significantly to our bottom line in the years ahead. A review of our performance in year 2017 has again demonstrated our consistency and determination to move up the ladder.

    “Our staff have remained our greatest asset.  They have demonstrated that with unity of purpose, there is no height that is unattainable,” he said.

  • Total Nigeria’s shareholders get N5.77b dividend

    Shareholders of Total Nigeria Plc will today receive N4.75 billion in final cash dividend for the 2017 business year, after they voted unanimously yesterday at the annual general meeting in Lagos to approve the dividend recommendation by the board of the downstream oil company.

    Chairman, Total Nigeria Plc, Mr Stanislas Mittelman, said the final dividend of N4.75 billion will be paid to shareholders today in line with the corporate reputation of the petroleum-marketing company for early disbursement of shareholders’ dividends.

    Shareholders that had completed the electronic dividend (e-dividend) payment mandate will be automatically credited with the final dividend per share of N14, bringing the total dividend per share for the 2017 business year to N17. The company had earlier distributed N1.02 billion as interim cash dividend, representing interim dividend of N3 per share.

    Mittelman said Total Nigeria is poised to deliver better returns to shareholders by taking advantage of the expected growth in the Nigerian economy and improvement in macroeconomic environment to grow its business.

    According to him, a stable and conducive business environment in 2018 will provide Total Nigeria with opportunities for growth, investment and consolidation.

    “We intend to take advantage of the projected growth the Nigerian economy will offer and deliver value to you our shareholders and other stakeholders,” Mittelman said.

    He noted that while Total Nigeria recorded many milestones in 2017, the company’s overall performance was adversely affected by the economic recession and its consequent contraction of the downstream market as well as scarcity of Premium Motor Spirit (PMS) due to high landing cost compared to the template.

    He added that the performance in 2017 was also affected by foreign exchange scarcity that hindered importation and high financial costs due to increase in bank lending interest rates.

    He pointed out that the company’s lubricants business delivered strong performance in 2017 while the company continued to improve on its credit control management and fixed costs evolution.

    He noted that Total Nigeria reinforced its leadership in health, safety, environmental protection and quality (HSEQ) in 2017 by becoming the first petroleum-marketing company to  receive the ISO 9001: 2015 and ISO 14001:2015 certifications, adding that the company also recorded no accident during the period.

    Shareholders commended the steady performance of the company in spite of the challenges in the oil and gas sector.

    National President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, said the performance of Total Nigeria when compared against other operators in the sector showed the resilience of the company.

    Former General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr. Adebayo Adeleke, urged the company to improve on its performance.

    Key extracts of the audited report and accounts of Total Nigeria for the year ended December 31, 2017 showed that 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.

     

  • Shareholders approve Forte Oil’s assets sales

    Shareholders of Forte Oil Plc have approved the company’s plan to restructure its operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana. Forte Oil plans to streamline its operations and focus on its Nigerian downstream marketing business.

    At the Annual General Meeting (AGM) in Lagos, shareholders authorised the board of the company to sell its stakes in Forte Upstream Services Limited, Amperion Power Distribution Limited and AP Oil & Gas Ghana Limited.

    The meeting mandated the board of directors to invest the net proceeds from the divestments in the downstream marketing business.

    AP Oil & Gas Ghana Limited and Forte Upstream Services Limited are wholly owned subsidiaries while Forte Oil owns 57 per cent equity stake in Amperion Power Distribution Company Limited.

    Forte Oil Plc Chairman, Mr Femi Otedola said the restructuring was aimed at ensuring sustainable growth and returns to shareholders.

    “We concluded on focusing our resources on our core competence, and streams of uninterrupted dividends for our shareholders,” Otedola said.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that group turnover dropped from N148.61 billion in 2016 to N129.44 billion in 2017. Gross profit increased from N20.58 billion to N24.12 billion. Operating profit rose from N9.62 billion to N14.26 billion. Profit before tax doubled from N5.34 billion in 2016 to N10.63 billion while profit after tax jumped from N2.89 billion in 2016 to N12.23 billion in 2017.

    Underlining the rationales for the strategic business change, Forte Oil had said its decision to divest from upstream services and power generating businesses will boost its distributable earnings for the benefit of shareholders.

    According to the company, following the significant changes in the oil and gas industry in recent years, only downstream operators with huge investments in both storage and distribution infrastructures can remain competitive and operationally efficient in the long run.

    Forte Oil noted that that although the power business profitable,  it has  huge receivables due from the Nigeria Bulk Electricity Trading Plc (NBET) and a significant portion of its distributed earnings is also utilised in servicing the acquisition debt finance.

    The company said despite the significant resources deployed  the upstream services business has consistently contributed less than  seven  to the Group earnings in the last three financial years.

    Similarly, its downstream subsidiary in Ghana has consistently declared losses after tax in the last three years and   has substantial bad and uncollectable trade debts in the business as a result of negative economic conditions and currency devaluation in prior years.

    “This divestment a will reduce finance cost in the Group significantly and increase distributable earnings for the benefit of the shareholders. The finance cost attributable to the businesses to be divested stood at N2.7 billion and N2.2 billion for the year ended 31st December 2016 and the year ended 31st December 2017. The proceeds of the divestment initiative will also enable your company to compete more favourably and achieve the planned expansion of the business for increased market share,” Forte Oil said.

  • Shareholders approve Forte Oil’s assets sales

    Shareholders of Forte Oil Plc have approved the company’s plan to restructure its operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana. Forte Oil plans to streamline its operations and focus on its Nigerian downstream marketing business.

    At the annual general meeting in Lagos, shareholders authorised the board of the company to sell its stakes in Forte Upstream Services Limited, Amperion Power Distribution Limited and AP Oil & Gas Ghana Limited.

    The meeting mandated the board of directors to invest the net proceeds from the divestments in the downstream marketing business.

    AP Oil & Gas Ghana Limited and Forte Upstream Services Limited are wholly owned subsidiaries while Forte Oil owns 57 per cent equity stake in Amperion Power Distribution Company Limited.

    Chairman, Forte Oil Plc, Mr Femi Otedola said the restructuring was aimed at ensuring sustainable growth and returns to shareholders.

    “We concluded on focusing our resources on our core competence, and streams of uninterrupted dividends for our shareholders,” Otedola said.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that group turnover dropped from N148.61 billion in 2016 to N129.44 billion in 2017. Gross profit increased from N20.58 billion to N24.12 billion. Operating profit rose from N9.62 billion to N14.26 billion. Profit before tax doubled from N5.34 billion in 2016 to N10.63 billion while profit after tax jumped from N2.89 billion in 2016 to N12.23 billion in 2017.

    Underlining the rationales for the strategic business change, Forte Oil had said its decision to divest from upstream services and power generating businesses will boost its distributable earnings for the benefit of shareholders.

    According to the company, following the significant changes in the oil and gas industry in recent years, only downstream operators with huge investments in both storage and distribution infrastructures can remain competitive and operationally efficient in the long run.

    Forte Oil noted that that although the power business profitable,  it has  huge receivables due from the Nigeria Bulk Electricity Trading Plc (NBET) and a significant portion of its distributed earnings is also utilized in servicing the acquisition debt finance.

    The company said despite the significant resources deployed  the upstream services business has consistently contributed less than  seven  to the Group earnings in the last three financial years.

    Similarly, its downstream subsidiary in Ghana has consistently declared losses after tax in the last three years and   has substantial bad and uncollectable trade debts in the business as a result of negative economic conditions and currency devaluation in prior years.

    “This divestment a will reduce finance cost in the Group significantly and increase distributable earnings for the benefit of the shareholders. The finance cost attributable to the businesses to be divested stood at N2.7 billion and N2.2 billion for the year ended 31st December 2016 and the year ended 31st December 2017 respectively. The proceeds of the divestment initiative will also enable your company to compete more favourably and achieve the planned expansion of the business for increased market share,” Forte Oil stated.

     

  • Shareholders approve N100b new capital raising for Lafarge Africa

    Shareholders of Lafarge Africa Plc have approved a resolution authorising the company to raise additional capital of up to N100 billion as the cement group continues to optimise its balance sheet.

    At the annual general meeting in Lagos, shareholders mandated the board of directors of Lafarge Cement to raise additional capital through an offer of debt or equity or a combination of the two means from the Nigerian or international capital market.

    Lafarge Africa recently successfully raised N131.6 billion through a rights issue, which was oversubscribed.

    Shareholders also approved the payment of N13 billion as cash dividend for the 2017 business year, representing a dividend per share of N1.50.The approved dividend represents a 45 kobo increase per share on the payout for the 2016 business year.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun said the dividend payout was in appreciation of the support shown by the shareholders for the growth of the company.

    According to him, the board is mindful of the support of all shareholders through the difficult but necessary journey to transform the company into a more agile and correctly financed business ready to benefit from the potential opportunities in Nigerian building materials market.

    He assured shareholders that restructuring of the capital structure of the company largely completed through the past year would help to significantly reduce the cost of financing and currency translation risk.

    He said the recent N131.6 billion rights issue has helped to significantly reduce the foreign exchange debt exposure by 50 per cent, noting that the board is already reviewing options to deal with the remaining foreign exchange debt.

    Balogun pointed out that Lafarge Africa has been implementing a new route-to-market initiative aimed at supporting the anticipated growth in demand as the country gradually recovers from recession and as foreign exchange rates stabilise.

    Country Chief Executive Officer, Lafarge Africa Plc, Michel Puchercos expressed optimism about the performance of the company in the current business year.

     

  • Settle rift with Ansbury, shareholders urge Oando

    The Lagos State government yesterday said finished goods valued at over $735.8million (about N264billion) have so far been exported from the Lekki Free Zone (LKF) project in the last three years.

    Commissioner for Commerce, Industry and Cooperatives, Mrs Olayinka Oladunjoye who spoke at the annual Ministerial Press Briefing to mark the third anniversary of Governor Akinwunmi Ambode’s administration at the Bagauda Kaltho Press Centre, Alausa, said the government was totally committed to the development of businesses in the Zone. She added that measures had been taken to ensure that the goods meet international standard before they are exported out of the country.

    She said the Nigeria Customs Service (NCS), Nigeria Export Processing Zones Authority (NEPZA) and other supporting agencies coordinated the exporting process of the goods in conjunction with the Standards Organisation of Nigeria (SON), saying that it was a testament to the fact that the Zone was living up to expectation.

    She said the LFZ, among other things, was conceptualised to develop an offshore economic growth zone, attract foreign investments, promote export, create jobs, transfer technology, minimise capital flight and establish a one-stop business haven. It currently has 22 Free Zone Enterprises (FZEs) and 18 manufacturing enterprises in operation.

  • Shareholders laud Transcorp’s turnaround

    Shareholders of Transnational Corporation of Nigeria (Transcorp) Plc have commended the board and management of the conglomerate for the turnaround of the group from a loss position to profitability. Transcorp witnessed considerable growths in turnover and profitability in 2017, pulling back from a pre-tax loss of N5.93 billion in 2016 to a pre-tax profit of N12.31 billion in 2017.

    At the annual general meeting in Lagos, shareholders unanimously approved the payment of N812.96 million as cash dividend for the 2017 business year, as recommended by the board of the conglomerate. Shareholders will receive a dividend per share of 2.0 kobo.

    National President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, said the leadership of the company has shown strong commitment to wealth creation for shareholders.

    According to him, the management of the conglomerate has kept to their words of delivering superior returns to the shareholders as promised at the previous general meeting.

    “We are very pleased with this turnaround, and we trust that the company will do all it can to uphold this,” Umar said.

    Chairman, New Dimension Shareholders Association, Mr. Patrick Ajudua also commended the management for returning the company to profitability and deciding to pay dividend to shareholders.

    He urged the directors of the conglomerate not to relent in their efforts to ensure that the conglomerate continues to surpass targets every year.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the improvement in the performance of the conglomerate reflected the underlying improvement in the Nigerian economy.

    According to him, Transcorp is a gauge of Nigeria’s economy as it was setup to drive the nation’s economy in a positive direction by investing in catalytic sectors, capable of improving lives and Transforming Nigeria.

    “When Transcorp is doing well, you don’t have to check to see if Nigeria is also doing well. Their journeys are intertwined,” Elumelu said.

    He assured shareholders that strategic initiatives implemented in 2017 have laid firm foundation for continuous growths in the years ahead.

    He pointed out that achieving excellence in the execution of the group’s identified strategic imperatives remains critical to its success as an organisation as this continues to position it for several opportunities in the economy and adequately insulate it from any challenges within the operating environment.

    He said the group would explore its oil & gas assets to enhance performance in the years ahead while also leveraging on the oil and gas assets to maximize Transcorp’s potential in the power generation space.

    “The plan is for Transcorp Power to continue expanding its generating capacity and contribute even more to the national grid despite already emerging as Nigeria’s highest generator of Power,” Elumelu said.

    He noted that the group has successfully obtained NNPC’s approval for extension of the Phase 1 Exploration Period for its OPL 281 PSC, which has given it additional time to fulfill work commitments, including drilling of the appraisal wells, under the first Phase of the PSC.

    “We are positive that further engagement with investors will lead to effective execution of OPL 281work obligations, as approved under the PSC,” Elumelu said.