11 Plc PAT Drops 3% as Revenue Rises 39.7% in H1 2021

By Adedapo Adesanya

One of the major oil companies in the country, 11 Plc, formerly known as Mobil Oil Nigeria Plc, has released its first financial statements under its new trading platform.

The energy firm used to trade its stocks on the Nigerian Exchange (NGX) Limited, formerly the Nigerian Stock Exchange (NSE), but it voluntarily delisted from the platform in May 2021 to join the NASD over-the-counter Securities Exchange a month later.

In the results analysed by Business Post, 11 Plc, in the first six months of the year, saw its Profit After Tax (PAT) drop by 3.0 per cent as it published N2.4 billion compared to N2.5 billion recorded in the same period last year.

This occurred despite the 39.7 per cent growth in revenue in the first half of 2021 to N112.5 billion as against N80.5 billion achieved in the same time of last year.

There was a higher cost of sales for the oil and gas company as this gulped N102.8 billion compared with N75.6 billion in the comparative period, which indicated a 35.9 per cent rise.

11 Plc recorded a gross profit of N9.7 billion in the half-year, 97.9 per cent more than N4.9 billion in H1 2020, while the other income was N4.1 billion, 2.3 per cent higher than N4.0 billion in the same period of 2020.

In addition, there was a 127 per cent rise in administrative expenses to N5.0 billion from N2.2 billion, while the selling and distribution expenses went up by 45.8 per cent to N4.4 billion from N2.9 billion.

Other operating expenses amounted to N31.9 million in the first six months as the company neither made any operating income nor expenses in the comparative period.

There was a higher operating profit in H1’21 to N4.3 billion, 16.2 per cent more than N3.7 billion posted in the company’s unaudited statement a year ago.

11 Plc recorded a drop of 44.4 per cent in its finance income as N107.8 million was made, while the previous year’s amounted to N193.9 million, but the finance cost skyrocketed by 142.1 per cent to N342.6 million from N141.5 million in the comparative period.

In terms of Profit Before Tax (PBT), 11 Plc made N4.1 billion, 7.9 per cent more than N3.8 billion from the same period in 2020, while the basic earnings per share dropped 26 kobo to N6.72 from N6.98.

The energy firm is repositioning to focus on revenue generation, strategic opportunities, and to boost alliances and collaborations.