By Dipo Olowookere
**Says Financial Position May be Threatened
Shareholders of Chemical and Allied Products (CAP) Plc who had hoped to receive cash reward from the company for the 2019 financial year have been jilted.
This is because the board of the firm said it could not recommend dividend payment this year for the year ended December 31, 2019 due to the havoc caused by coronavirus outbreak.
In the previous fiscal year which ended December 31, 2018, the organisation put smiles on the faces of its shareholders when it paid N2.90 for every unit of the company’s stock in their possession.
In its financial statements for FY2019 released to the Nigerian Stock Exchange (NSE), the directors of CAP clearly stated that, “In light of economic uncertainties related to the corona virus pandemic, the Directors do not recommend the payment of dividend for the financial year ended December 31, 2019 (2018: 290k per share).”
The board also stressed that the continued spread of COVID-19 “will most likely impact [its] financial position and results” in the current financial year, which ended December 31, 2020.
In the 2019 fiscal year, the company increased its turnover to N8.4 billion from N7.8 billion, while the cost of sales rose to N4.4 billion from N4.0 billion.
Also, the gross profit increased to N4.0 billion from N3.6 billion, while the sales and distribution expenses jumped to N584.2 million from N262.5 million. This was largely due to a spike in the amount spent on marketing, communication and entertainment (N393.9 million in FY19 versus N137.2 million in FY18).
According to the results analysed by Business Post, CAP said its administrative expenses slightly increased to N1.4 billion from N1.2 billion, while other income rose to N97.9 million from N64.3 million. The rise in the other income was boosted by the N18.9 million made from sale of scrap items (versus N5.3 million in FY18) and the N65.2 million raked from the income generated from management services rendered to the company’s key distributors (N57.5 million in FY18).
However, the operating profit decreased in the period under review to N2.1 billion from N2.3 billion in the prior year, while the finance income increased to N426.5 million from N327.3 million and this was helped by the increase in the interest income on short-term bank deposits.
The finance cost drop to less than N1 million from N14.6 million in 2018. This left the company’s net finance income at N425.6 million as at December 31, 2019 in contrast to N312.6 million as at December 31, 2018.
Business Post further reports that while the profit before tax of the firm remained flat at N2.6 billion over the two different years being compared, the net profit dropped to N1.7 billion in 2019 from N2.0 billion in 2018. Also, its retained earnings reduced to N2.2 billion from N2.4 billion within a year.
CAP is a company based in Lagos that is involved in the manufacturing and sale of paints. The firm is one of the key players in the sector.
NNPC’ll Earn More Revenue—Kyari
By Adedapo Adesanya
The Nigerian National Petroleum Company Limited (NNPC) is set to earn more revenue for the country as the federal government has positioned it to become the most capitalised company in Africa, says the Chief Executive Officer (CEO) of the company, Mr Mele Kyari.
This will happen as the central government has commenced full implementation of the Petroleum Industry Act (PIA) in earnest.
Mr Kyari made this assertion while addressing staff in a town hall meeting at the weekend said the PIA had put “all money-making options on the table; it is up to us to take advantage of it”.
Highlighting the significance of the PIA to the NNPC and by extension the Nigerian economy, Mr Kyari said the new legislation has raised shareholders’ expectations on the company, even as it has given it wide room to make progress.
He said as a result of the new legislation, NNPC Limited would not only shed some of its toxic liabilities but will be the largest and most capitalised company in the whole of Africa and, potentially, the most profitable on the entire continent.
The CEO charged employees of the organisation to ensure that the company becomes a commercially viable entity and a multi-billion-dollar company that will continuously deliver value to its shareholders–the over two hundred million Nigerians.
Business Post had reported that President Muhammadu Buhari recently instituted the board of NNPC Limited led by Mrs Margery Chuba Okadigbo, Chairman, Mr Mele Kolo Kyari, Chief Executive Officer, Mr Umar I. Ajiya, Chief Financial Officer, Mr Tajudeen Umar (North East), Mrs Lami O. Ahmed (North Central), Mallam Mohammed Lawal (North West), Mr Henry Obih (South East), Barrister Constance Harry Marshal (South-South), and Mr Pius Akinyelure (South West).
Others included Mr Nasir Sani Gwarzo, Permanent Secretary, Ministry of Petroleum Resources and Mr Aliyu Ahmed, Permanent Secretary, Minister, Finance, Budget and National Planning.
The President charged the board members to enforce the reforms put forward by the Petroleum Industry Act (PIA) 2021, which seeks to reposition the Nigerian petroleum industry to a commercially viable and competitive industry in line with global business dynamics and best practices.
“The Nigerian National Petroleum Company Limited is mandated to focus on profitability and continuous value creation beyond the simple fulfilment of legal and regulatory requirements.
“NNPC Limited is expected to operate at par with its industry peers across the world while acting as Enabler Company that will foster the development of other sectors of our economy,” he said.
Gains in NDEP, Nipco Push NASD Exchange 0.25% Higher
By Adedapo Adesanya
The week ended in the positive territory on the floor of the NASD Over-the-Counter (OTC) Securities Exchange following a 0.25 per cent rise on Friday, January 14.
The favourable outcome came on the back of gains recorded by the duo of Niger Delta Exploration and Production (NDEP) Plc and Nipco Plc.
NDEP Plc appreciated by N2.5 or 1.1 per cent during the session to close at N238.00 per unit as against N235.50 per unit it finished at the preceding session, while Nipco Plc improved by N6 or 8.7 per cent to close at N69.00 per unit compared with N63.00 per unit it closed at the previous session.
As a result of the good performances put up by the two stocks, the NASD unlisted security index (NSI) moved up by 1.86 points to 750.02 points from 748.16 points, while market capitalisation gained N1.58 billion to wrap the day at N635.10 billion in contrast to N633.52 billion it closed on Thursday.
There was no price loser during the trading day, through the trading volume slid by 36.9 per cent as a total of 207,618 units of shares exchanged hands compared with 329,347 units transacted on Thursday.
But the trading value rose by 15.6 per cent to N10.7 million from the previous day’s value of N9.3 million, while the number of deals depreciated by 36.4 per cent as only seven deals were carried out compared to the 11 deals executed at the previous session.
Central Securities Clearing Systems (CSCS) Plc remained as the most active stock by volume (year-to-date) as it has traded 1.02 million units of its shares for N19.9 million. Friesland Campina WAMCO Nigeria Plc was in second place for transacting 40,804 units of its stocks valued at N4.8 million, while NDEP Plc was in third place with 28,289 units valued at N6.7 million.
Also, CSCS Plc ended the session as the most traded stock by value with a turnover of 1.0 million units exchanged at N19.9 million, NDEP Plc trailed with 28,289 units worth N6.7 million, while Friesland Campina WAMCO Nigeria Plc has exchanged 40,804 units worth for N4.8 million.
28.7% Drop in I&E Turnover Strengthens Naira to N416.00/$1
By Adedapo Adesanya
The Naira closed the week stronger against the US Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Friday, January 14.
At the I&E window, the local currency appreciated by 0.06 per cent or 50 kobo to trade at N416.00/$1 as against N416.50/$1 it closed on Thursday.
The strengthening of the local currency happened on the back of a 28.7 per cent or $49.59 million fall in turnover at the market segment as data obtained by Business Post from the FMDQ Securities Exchange showed that transactions worth $123.4 million were carried out compared with the $172.99 million recorded at the previous session.
However, at the interbank window of the market, the Naira recorded a flat outcome against the United States Dollar, closing at N414.79/$1, the same rate of the preceding day.
In the same vein, the domestic currency closed flat against the Pound Sterling on Friday at N565.57/£1 and against the Euro, the exchange rate of the indigenous currency remained intact at N475.22/€1.
Meanwhile, at the cryptocurrency market, six of the 10 digital currencies tracked by the newspaper across several trading platforms appreciated in value.
The highest gainer was Cardano (ADA) as it moved higher by 7.4 per cent to trade at N783.58, Tron (TRX) made a 3.8 per cent gain to sell at N40.46, Litecoin (LTC) improved by 3.5 per cent to trade at N82,485.74, Ripple (XRP) appreciated by 1.8 per cent to sell at N450, Binance Coin (BNB) rose by 0.7 per cent to trade at N205,719.75, while Dogecoin (DOGE) grew by 0.2 per cent to trade at N105.12.
However, Dash (DASH) went down by 1.6 per cent to sell for N80,050.10, Ethereum (ETH) depreciated by 0.5 per cent to sell at N1,896,100.03, the United States Dollar Tether moved down by 0.3 per cent to trade at N783.58, while Bitcoin (BTC) declined by 0.2 per cent to quote at N24,576,842.26.
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