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Economy

Briclinks Mulls New Business Opportunities

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Briclinks financial results

By Dipo Olowookere

The newest member of the Nigerian Stock Exchange (NSE), Briclinks Africa Plc, is considering exploring new business opportunities.

This it hopes will make it have better earnings and return to profitability.

On Friday, February 5, 2021, Briclinks was admitted to the growth board of the exchange through a listing by introduction. The firm quoted its 10 million ordinary shares of N1.00 each at N6.26 per unit on the platform.

At the ceremony to mark its entry into the space, the chief executive of Briclinks, Mr Mohammed Buhari, who controls 50 per cent stake of the firm, explained that, “We have dreamt about this day and worked towards it with effervescence right from the moment we decided to be listed on the NSE about 17 months ago.”

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He further said, “We have from this process emerged as a better entity well-tuned to corporate best practices and culture.”

Mr Buhari also stated that joining the NSE “will avail us the opportunity to build not just a company but an institution forged in the furnace of integrity, and excellence.”

While thanking the company’s financial advisers to the listing, Afrinvest Securities, and the NSE team for their untiring support and guidance in making this day a reality, he said Briclinks would aim to “become a force on a regional scale [as] being on the exchange is a testimony of strength, sustainability and worthy service.”

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This week, the board of the organisation released the financial statements of the firm for the period ended December 31, 2019, and from the analysis of Business Post, the bottom line was not impressive.

Briclinks said it recorded a pre-tax and post-tax loss of N7.3 million respectively, though the figures for the preceding year were not included in the results to indicate if it was an improvement or not.

The firm said in the year under consideration, it generated a revenue of N165.6 million and this came mainly from the sale of bandwidths to its customers.

It further said the cost of sales gulped N140.2 million in the year, majorly from marketing expenses, interconnect charge, bandwidth charge and licence/permit fees.

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As a result, the company was left with a gross profit of N25.4 million. This could not sustain the operating costs of N32.7 million incurred, which led to the loss before tax of N7.3 million the firm recorded in the year.

As analysis of the operating expenses showed that Briclinks paid N20.8 million as amortisation charge, N5 million for rent, N1.6 million for telecommunication and N496,800 as bank charges, while salaries and wages gulped N295,000 in the year.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

NGX Delists Four Firms for Poor Corporate Governance

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ATS Training NGX

By Dipo Olowookere

Four companies trading their shares on the Nigerian Exchange (NGX) Limited have been removed over poor corporate governance.

The affected firms; Evans Medical Plc, Nigerian-German Chemical Plc, Roads Nigeria Plc and Unic Diversified Holdings Plc have not been able to abide by the listing rules, including filing their financial results to the exchange.

The stock exchange requires companies trading their equities on its platform to regularly file their financial statements to enable shareholders and the investing public to have information that would enable them to make investment decisions.

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When organisations fail to submit their books for scrutiny, the exchange uses its big hammer, which usually comes in a form of sanction and when it becomes consistent, the firms are shown the way out.

As for the aforementioned four companies, they have failed over a period of time to adhere to the rules of the exchange, which necessitated the regulation action.

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In a regulatory document obtained by Business Post, the NGX disclosed that it removed the “entire issued capital” of the four organisations effective Monday, June 14, 2021.

It was stated that the delisting of the firms received the approval of the board of NGX Regulation Limited (NGX RegCo) on Wednesday, April 21, 2021.

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According to the exchange, the authorisation for the removal of the affected firms is in line with the regulatory delisting process of NGX.

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Economy

DPR Insists Petrol Marketers Must Submit Daily Stock Records

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Daily Stock Records

By Modupe Gbadeyanka

The Department of Petroleum Resources (DPR) has maintained that petroleum marketers in the country must submit daily stock records.

In a statement, the agency regulating the industry said this is one of the statutory requirements to be adhered to by the fuel sellers.

The DPR had requested licensed petrol stations to submit their daily transaction records, but the operators, through their group, the Independent Petroleum Marketers Association of Nigeria (IPMAN), threatened a strike action.

They alleged that officials of the agency were using the means to extort them, describing the request for daily transaction records from filling stations as unacceptable.

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“IPMAN has no other alternative other than instructing our members not to load from Suleja depot in Niger State to express our frustrations after all efforts to make DPR officials desist from unethical practices failed,” the Chairman of IPMAN in charge of Suleja/Abuja Unit, Mr Yahaya Alhassan stated.

But the DPR in the statement said the fuel marketers are not required to pay for filing the statutory report, urging them to submit the data via its website, www.dpr.gov.ng.

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In the statement issued by the Head of Public Affairs at the DPR, Mr Paul Osu, the agency explained that the reason for the request is to collate data on the consumption of the product in the country.

“We want to state for the records that request for daily stock of products supplied is a statutory regulatory requirement for any retail outlet license holder, which enables DPR to provide accurate petroleum products consumption data for the country. This regulatory oversight is at no cost to the retail outlets,” the statement said.

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According to the DPR, the provision of the daily stock report, which is also applicable to petroleum products depots, also enables DPR to provide investment guide to investors in line with its role as a business enabler and opportunity house for the oil and gas industry.

“The department wishes to inform all marketers that all applications and applicable statutory fees for retail outlet operations have been migrated online, www.dpr.gov.ng, in furtherance of the federal government’s ease of doing business policy,” it added.

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Economy

Joint Taskforce Destroys Sites Refining Shell Oil Illegally

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SNEPCo workers Shell

By Adedapo Adesanya

The Joint Military Taskforce operating in the Niger Delta, Operation Delta Safe, says it has conducted series of anti-illegal oil bunkering and raid operations, leading to the deactivation of several illegal oil refining sites across the region.

This was disclosed by the Acting Director, Defence Media Operations, Brigadier General Bernard Onyeuko after the raid.

He noted that several illegal pipelines connected to a pipeline operated by the Shell Petroleum Development Company of Nigeria Limited (SPDC) in Ibaa, Emuoha Local Government Area of Rivers State, were disconnected.

He added that troops, during the aggressive raids, conducted between June 3 and 16, 2021, recovered stolen items and sealed reactivated illegal oil refining sites, hence thwarting the activities of oil thieves in Rivers and Delta States.

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He further said some contraband vessels were also intercepted and confiscated by troops of Operation Delta Safe.

“These feats were achieved on 3rd and 4th June 2021, as troops conducted anti-illegal oil bunkering operations to deactivate illegal oil refining sites at Ibaa in Emohua LGA and Kumufari and Yalama Towns in Asari-Toru LGA of Rivers State.

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“During the operations, several barrels of illegally refined PMS and AGO were impounded and storage tanks immobilized.

“Relatedly, troops, while on patrol on 4 June, intercepted and impounded several wooden boats; some laden with large quantities of stolen crude oil, others loaded with vandalized pipes at DSC Roundabout in Udu LGA and Opuama Creek in Warri North LGA of Delta State.

“Additionally, troops on 5th June disconnected an illegal pipeline laid by criminals connected to SPDC pipeline around Ibaa in Emohua LGA of Rivers State.

“Troops also re-sealed some illegal oil refining sites reactivated by criminal elements at Koko Community in Warri North LGA of Delta State on 6th June 2021.”

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The Joint Military Taskforce was established across the Nigerian force and defence services to collaborate in tackling crude oil theft and attacks on oil and gas facilities across the nation.

SPDC had raised worries about the incessant theft of crude and the destruction of its pipeline facilities in Nigeria, a problem that has affecteded its profit turnover over the years.

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