Economy

C & I Leasing to Recapitalise Capital Base, Raise Fresh Funds

Published

7 years ago

01/08/2019

By Dipo Olowookere

Managing Director/CEO of C & I Leasing Plc, Mr Andrew Otike-Odibi, has expressed the determination of the company to raise its capital base to a higher level from its present.

Mr Otike-Odibi made this disclosure while reacting to the performance of the firm in the first six months of this year. He said this is one of the main targets the company hopes to achieve in the 2019 financial year.

“We remain focused on our key priorities for 2019, including validation of our business expansion, growth objectives of meeting and exceeding client’s expectation, increasing demand for our products and services and recapitalising the company’s capital base,” Mr Otike-Odibi said.

Business Post reports that the company disclosed that it “plans to raise equity via a Rights Issue for the purpose of business expansion, loan refinancing and working capital need.”

In the first half of 2019, C & I Leasing improved its gross earnings by 27.2 percent to N16.3 billion from N12.8 billion in H1 2018. This was mainly driven by the growth in the firm’s lease rental income by 70.6 percent of total gross earnings.

The growth in lease rental income was attributed to the expansion of the company’s lease rental portfolio, both in the marine and fleet management services respectively. Lease rental income comprising Fleet Management earnings and Marine earnings was up 30.9 percent to N11.5 billion in H1 2019 versus N8.8 billion in H1 2018.

According to the company, the growth in earnings from the lease rental business was the result of reduced vehicle downtime and new contracts signed during the period.

Marine provided ‘operate and maintain services’ on vessels owned by third parties, while Fleet Management saw an increase in earnings from the open rental business.

Personnel outsourcing earnings rose by 22.6 percent to N4.0 billion in H1 2019 (H1 2018: N3.2 billion) and represents 24 percent of total gross earnings. This was driven by increasing demand for professional services especially by the International Oil Companies, which resulted in higher volumes on existing contracts through the provision of expanded services such as enhanced logistics and trainings.

Tracking income was up by 16.6 percent to N115.8 million in H1 2019 (H1 2018: N99.3 million) due to increase in demand for tracking services reflected in increased customer uptake of its devices.

Net operating income increased by 24.7 percent to N4.6 billion in H1 2019 (H1 2018: N3.7 billion), underscoring the growth in gross earnings across the various business units.

Interest income, other operating income and share of gain from marine joint venture grew 3.4 percent to N704.6 million in H1 2019 (H1 2018: N681.5 million), largely driven by returns from the company’s marine business.

Interest expenses were up by 17.5 percent y-o-y to N2.5 billion in H1 2019 due to an increase in term loans to drive business expansion and to support the purchase of operating assets for the Fleet Management Business, while direct operating expenses were up by 31.7 percent y-o-y to N9.1 billion in H1 2019, reflecting the increase in gross earnings of the group, with indirect operating expenses increasing by 23.9 percent to N3.7 billion in H1 2019 (H1 2018: N3.0 billion).

The firm said its personnel costs rose 49.5 percent from N508.3 million in H1 2018 to N760.0 million in H1 2019 as a result of an ongoing welfare packages and performance incentives, while other administrative and general expenses grew by 26.6 percent from N794.7 million in H1 2018 to N1.0 billion in H1 2019, reflecting an increase in legal and professional fees, on business entered in by the company during the period as well as insurance expenses.

Profit before tax went up 25.8 percent year-on-year to N909.2 million from N723.0 million, while the profit after tax increased by 27.1 percent year-on-year to N866.9 million from N682.2 million.

Recall that in April 2019 the company entered into a Joint Venture arrangement with OCS Integrated Services Nigeria Limited, an Integrated Local Service Company, established to provide comprehensive operations and maintenance solutions for offshore oil and gas fields. It is a complete asset management which involves offshore asset maintenance and manpower solution.

Economy

Nigerian Stocks Chalk up 0.33% on Positive Market Breadth Index

Published

1 hour ago

09/06/2026

Dipo Olowookere

By Dipo Olowookere

Renewed buying interest raised the Nigerian Exchange (NGX) Limited by 0.33 per cent on Monday, with gains recorded in almost all the major sectors of the bourse at the close of transactions.

According to data harvested by Business Post, the insurance counter expanded by 0.62 per cent, the banking index grew by 0.59 per cent, the energy sector appreciated by 0.40 per cent, and the consumer goods space improved by 0.10 per cent, while the industrial goods segment closed flat.

When the closing gong was struck by 4 pm to signify the close of business on Customs Street, the All-Share Index (ASI) was up by 1,113.76 points to 243,707.07 points from 242,593.31 points, and the market capitalisation chalked up N714 billion to close at N156.308 trillion compared with the previous session’s N155.594 trillion.

Interest in Nigerian stocks yesterday resulted in a rise in the activity level, with the trading volume soaring by 17.86 per cent to 717.2 million units from 608.5 million units. The trading value advanced by 77.19 per cent to N56.7 billion from N32.0 billion, and the number of deals surged by 36.22 per cent to 73,321 deals from 53,826 deals.

FCMB was the busiest stock during the trading day, with a turnover of 152.3 million units worth N1.8 billion, Premier Paints exchanged 61.0 million units valued at N135.3 million, Dangote Cement traded 34.7 million units for N29.7 billion, The Initiates sold 32.8 million units worth N1.0 billion, and Jaiz Bank transacted 32.6 million units valued at N293.3 million.

Yesterday, the market breadth index was positive after the exchange closed with 37 price gainers and 28 price losers, representing strong investor sentiment.

International Energy Insurance gained 9.92 per cent to settle at N7.98, the Initiates added 9.91 per cent to its share price to quote at N32.15, ABC Transport garnered 9.68 per cent to trade at N6.80, Abbey Mortgage Bank grew by 9.63 per cent to close at N10.25, and Linkage Assurance soared by 9.36 per cent to N1.87.

On the flip side, Fidson Healthcare gave up 10.00 per cent to finish at N122.85, Academy Press crashed by 9.70 per cent to N7.45, RT Briscoe depreciated by 9.43 per cent to N13.45, SUNU Assurances tumbled by 9.37 per cent to N4.06, and Learn Africa decreased by 8.70 per cent to N10.50.

Economy

NASD OTC Exchange Opens Week Lower as Valuation Dips N1.27bn

Published

2 hours ago

09/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange recorded a marginal 0.05 per cent drop on Monday, June 8, depleting the market capitalisation by N1.27 billion to N2.606 trillion from N2.607 trillion, and cutting the Unlisted Security Index (NSI) by 2.12 points to 4,356.20 points from the previous 4,358.32 points.

The contraction witnessed during the session was triggered by a price loser, which overpowered that gains recorded by two securities on the trading platform.

Data indicated that MRS Oil Plc lost N6 at the close of business to settle at N165.00 per share compared with last Friday’s price of N171.00 per share.

Conversely, Lighthouse Financial Services Plc added 9 Kobo to sell at N1.03 per unit versus 94 Kobo per unit, and Central Securities Clearing System (CSCS) Plc appreciated by 8 Kobo to N78.48 per share from N78.40 per share.

The volume of securities traded by investors yesterday soared by 51.9 per cent to 213,188 units from 140,345 units, and the value of securities increased by 12.6 per cent to N20.2 million from N17.9 million, while the number of deals executed fell by 7.4 per cent to 25 deals from 27 deals.

Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 64.8 million units exchanged for N4.4 billion.

GNI Plc also remained as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, trailed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.

Economy

Naira Loses Against Dollar Official, Black Markets

Published

4 hours ago

09/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira opened the new trading week on a negative note on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEX) and the black market.

At the parallel market, the Nigerian currency weakened against the US Dollar by N5 to sell for N1,380/$1 compared with the preceding session’s rate of N1,375/$1, and at the GTBank FX desk, it shed N1 to trade at N1,373/$1 versus N1,372/$1.

At the official market, it lost 63 Kobo or 0.05 per cent against the Dollar during the session to close at N1,362.84/$1, in contrast to last Friday’s value of N1,362.21/$1.

However, the Nigerian Naira gained N2.30 against the Pound Sterling at the spot market yesterday, quoting at N1,821.29/£1 compared with the previous rate of N1,823.59/£1, and improved against the Euro by 23 Kobo to settle at N1,574.35/€1 versus N1,574.58/€1.

Data from the Central Bank of Nigeria (CBN) showed that interbank forex turnover increased to $92.248 million across 90 deals, from $73.565 million last Friday.

On the policy front, participants believed that the application of the fourth edition of the Foreign Exchange Manual of the central bank, which introduces updated guidelines for foreign exchange transactions and tightening compliance requirements for authorised dealers and market participants, will enhance market flexibility and ease previous restrictions.

Meanwhile, the cryptocurrency market snapped from recent declines, jolted by Strategy’s purchase of 1,550 Bitcoin for approximately $101 million, increasing its total holdings to 845,256 BTC. The company raised $181 million through common stock sales, using the proceeds to fund the bitcoin purchase and increase its cash reserves to $1 billion, pushing the price of the coin higher by 3.2 per cent to $63,731.69.

Cardano (ADA) appreciated by 8.4 per cent to $0.1738, Ethereum (ETH) rose by 5.2 per cent to $1,711.54, Solana (SOL) expanded by 5.1 per cent to $67.82, and Ripple (XRP) improved by 4.9 per cent to $1.18.

Further, Dogecoin (DOGE) jumped by 4.3 per cent to $0.0873, Binance Coin (BNB) soared by 2.7 per cent to $609.50, and TRON (TRX) increased by 0.7 per cent to $0.3274, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $0.9997 and $0.9998, respectively.