Economy
Caverton Rules Out Fresh Capital Raising For Now
By Adedapo Adesanya
Caverton Offshore Support Group (COSG) Plc has disclosed that raising additional capital is not the current focus of the group.
This was disclosed by the Chief Executive Officer (CEO) of the company, Mr Olabode Makanjuola, during a chat with Business Post and two others after the company’s Facts Behind the Figures at the Nigerian Stock Exchange (NSE) in Lagos on Monday.
“We are not exactly coming to the market to raise additional capital. I think one of the things we realized is that we’ve been focused too much on the traditional business,” he said.
Mr Makanjuola admitted that the group’s engagement with the capital market since it joined the NSE in 2014 has been “quite weak,” stating that looking at the company’s debt profile, yesterday’s event was a good opportunity to meet with some of its stakeholders.
“We needed to engage [with the investing community] to make them know what we exactly want to do. We do intend to come to the market at some stage [to raise funds, but] today is not that day.”
Speaking further, he said, “We don’t have a timeline yet [for the capital raising]. Like the CFO (Chief Financial Officer), we’ll be assessing our various contracts and then make a decision based on our capital requirements. We are not coming to the market just because of our debt profile.”
“We are already looking at our debt profile as well as infrastructural development and our expansion drive.”
Earlier at the event, the Chief Financial Officer (CFO) of Caverton Offshore, Mrs Titi Adigun, said that the company recorded a total increase of N2.6 billion in its revenue for the nine month period that ended on September 30, 2019.
According to her, Caverton’s revenue for the period stood at N25.8 billion against the N23.3 billion, which was recorded in the same period of 2018 and this was as a result of revenue growth caused by the increase of Helicopter/Airplane contracts and agency service income.
The company also saw an increase in its profit before tax for the period to N3.9 billion from N2.6 billion in 2018 despite a seven percent increase in direct operating costs.
She noted that the administration expenses also increased by N850 million due to rise in employee benefits amounting to N735.5 million and as well as increase in salaries of ground staff.
She further said the group has improved cost efficiencies with liquidity ratio stable under the review period and also having a steady capital adequacy ratio balancing the support for growth initiatives.
Speaking on the company’s Maintenance, Repair, Overhaul (MRO) at the Murtala Muhammed Airport, Lagos, the CEO said this would be “one of its kind” and noted that the group was looking at a completion in Q4 2020.
He, however, called for a better infrastructure, which according to him, is one of the major challenges in the sector.
Caverton Offshore Support Group operates in the marine and aviation logistics sector in Nigeria and Sub-Saharan Africa, and the group is looking at extending operations into Cameroon, Ghana, Equatorial Guinea, Mozambique, and Angola.
Business Post recalls that soon after its Initial Public Offering (IPO) worth $197 million in 2014, Caverton announced plans to raise fresh funds.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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