Economy
Flour Mills Raises Dividend by 20% Despite Poor FY Results
By Dipo Olowookere
On Friday, Flour Mills of Nigeria Plc released its audited financial statements for the full year ended March 31, 2019.
In the results briefly analysed by Business Post, the harsh operating environment and the challenging logistics situation ctreated by the Apapa gridlocl in Lagos continued to weigh on the firm.
This was evident in the revenue generated by Flour Mills, which went down to N527.4 billion from N542.7 billion. The traffic issue raised the cost of sales of the firm to N474.1 billion from N473.9 billion, while the selling and distribution expenses jumped to N8.2 billion from N6.2 billion, with the administrative expenses staying flat at N19.4 billion, same amount used a year earlier.
However, the company’s strategy to optmise the finance costs yielded a good result as this was slashed by 30 percent to N22.9 billion from N32.7 billion in the period under consideration.
A further analysis of the financial statements by Business Post showed that during the fiscal year, the gross profit of the firm dropped to N53.4 billion from N68.8 billion, while the operating profit reduced to N32.3 billion from N48.2 billion, with investment income going down to N768.6 million from NN816.3 million.
In the year, the profit before tax went down to N10.2 billion from N16.4 billion, while the profit after tax decreased to N4 billion from N13.6 billion, with the earnings per share reducing to N1 from N4.83k.
However, as a way to boost the morale of its shareholders, the board of Flour Mills is proposing the payment of N1.20k per share as dividend for the financial year, indicating a 20 percent increase from last fiscal year. Payment of this cash reward is subject to approval at the Annual General Meeting (AGM).
Commenting on the results, Group Chief Finance Officer of Flour Mills, Mr Anders Kristiansson, said, “Our strategy to restructure the balance sheet base and optimize the financing costs have started to yield the desired results, as the business showed increasing levels of efficiency.
“Despite ongoing pressures on consumer disposable income in many of our target categories, we continued delivered a stronger quarter 4 than last year.”
On his part, Group Managing Director of the flour miller, Mr Paul Gbededo, stated that, “We have made substantial progress this year, even in the face of an adverse and challenging business environment.
“Our growth and efficiency initiatives across our various functions and businesses have started to show anticipated gains as we continue to focus on organic sales growth and position the business for continuous profitability.”
Recall that in 2018, Flour Mills undertook a series of strategic actions designed to improve returns and deliver maximum gains for our investors. Top of such actions was the restructuring process that saw all the firm’s group businesses in the agriculture sector aligned under Golden Fertilizer company, a fully owned holding company.
According to a statement issued by company, the decision has already started to yield appreciable improvements within the group, in the areas of cost maximization and improved operational efficiency as the businesses make the most of their competitive advantage and synergies. This is further supported by the strong cost control measures that have been put in place by management within the year under review,
In the agriculture space, Flour Mills has continued to consolidate on its investments, with a strong focus on innovative and efficient use of resources.
Accordingly, the group is resizing and simplifying the operations of some of the farms which form an integral part of our backward integration strategy with a few of the smaller experimental farms being scaled-down, whereas we continue to focus on the key units.
By Aduragbemi Omiyale
The embargo earlier placed in the trading of Thomas Wyatt Nigeria shares has been lifted by the Nigerian Exchange (NGX) Regulation Limited.
The regulatory subsidiary of NGX Group lifted the suspension on Monday, July 6, 2026, via a notice signed by Bonaventure Onwuji on behalf of the Head of the Issuer Regulation Department of NGX RegCo.
Investors were earlier prevented from buying and selling equities of the organisation after it failed to submit its relevant financial statements as required by the listing rules.
The embargo was placed on October 31, 2025, in line with the provisions of Rule 3.1: Rules for Filing of Accounts and Treatment of Default Filing, which provides that if an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: a) send to the issuer a second filing deficiency notification within two business days after the end of the cure period, b) suspend trading in the issuer’s securities, and c) notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.
After filing the results with NGX Limited, and pursuant to Rule 3.3 of the Default Filing Rules, which states that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts provided the exchange is satisfied that the accounts comply with all applicable rules of the exchange. The exchange shall thereafter also announce through the medium by which the public and the SEC was initially notified of the suspension, that the suspension has been lifted, the suspension was lifted.
By Adedapo Adesanya
Nigerian domestic oil producer Renaissance Energy has recorded its first major oil discovery since taking over Oil Mining Lease (OML) 74 last year, following the successful drilling of an exploration well offshore Nigeria in a development that could support the country’s efforts to boost crude oil production and replenish reserves.
Preliminary results showed about 1,000 feet (305 metres) of crude oil-bearing reservoirs across seven zones, with data and fluid tests confirming light oil in high-quality reservoirs, Renaissance said in a statement, without providing further details.
OML 74 is a large shallow-water block in the eastern Niger Delta off Nigeria’s coast and holds at least eight previously undeveloped discoveries.
Renaissance, which now owns Shell’s former onshore and shallow-water assets, operates Nigeria’s largest upstream joint venture with 18 oil leases, two export terminals and a FPSO vessel in the oil-rich delta.
Commenting on Tuesday, Mr Tony Attah, the managing director/chief executive of Renaissance, said the discovery reflects the company’s renewed focus on exploration and its commitment to boosting Nigeria’s long-term oil production.
“The success of JK-004, just over one year after assuming operatorship of these assets, demonstrates the strength of our exploration programme,” he said.
He lauded the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), adding that the exploration performance reflected the collaboration with the company’s joint venture partners comprising the Nigerian National Petroleum Company Limited (NNPC), TotalEnergies Limited and Agip Energy and Natural Resources.
He added that the NNPC Group Chief Executive Officer, Mr Bayo Ojulari, and the Executive Vice President, Upstream, Mr Udobong Ntia, provided the needed strategic guidance with commitment for value delivery across the joint venture assets.
On his part, the Vice President of Exploration and Chief Explorer at Renaissance, Mr Johnbosco Uche, said the exploration success was due to the company’s subsurface excellence, technical rigour, and disciplined approach to reserve replacement.
“The JK-004 well provides a strong foundation for accelerated maturation with clear pathways to early development and value realisation,” the Chief Explorer said, adding that the strategic location of JK-004 near an existing field would enable rapid commercialisation.
The chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan, described the feat as a perfect alignment with the commission’s vision of growing the nation’s reserves “to future-proof sustainable national growth,” and pledged to continue building the enabling regulatory environment required to support the Nigerian oil and gas industry.
By Aduragbemi Omiyale
The mandatory takeover bid of about 1.63 per cent shares held by minority shareholders of Premier Paints Plc by Xenergi has been launched.
Business Post learned that the exercise will open at 8 am on Monday, July 13, 2026, and close on Friday, August 7, 2026, and it concerns shareholders of Premier Paint, excluding Xenergi Plc, whose names appear in the register of members of Premier Paint on the qualification date, which was Monday, July 6, 2026.
Xenergi is looking to acquire a total of 2 million shares of Premier Paints at N38 per unit, amounting to N76 million.
The reason for this offer is to enable Xenergi comply with Section 142(4) of the ISA Act 2025 and Rules 445 – 448 of the SEC New Rules and Amendment dated August 30, 2021, following its acquisition of a 49.60 per cent majority equity stake in Premier Paint.
On June 8, 2026, Xenergi Plc acquired 61,003,350 ordinary shares in Premier Paint, representing a 49.60 per cent equity stake.
Xenergi Plc and Premier Paint Plc executed a Share Sale and Purchase Agreement detailing the terms and conditions of the acquisition. The acquisition was concluded following receipt of the required regulatory approvals from the Federal Competition & Consumer Protection Commission (FCCPC), the Securities and Exchange Commission (SEC) and the Nigerian Exchange (NGX) Limited.
In accordance with Section 142(4) of the ISA Act 2025, Xenergi is required to make a takeover bid to all the other shareholders of Premier Paint.
Consequently, on May 25, 2026, the board of Xenergi granted approval for a Takeover to be made to all qualifying shareholders, for the acquisition of the offer shares.
