Economy
Global Spectrum Energy Services Quits Stock Exchange After Five Years
By Dipo Olowookere
An integrated oil & gas offshore support vessel services company, Global Spectrum Energy Services Plc, has decided to call it quits with the Nigerian Exchange (NGX) Limited.
In November 2017, the firm joined the local stock exchange by listing 800 million ordinary shares of 50 Kobo each at N5 per share on the NGX’s trading platform, boosting the value of the market by N4 billion.
But after five years of being in the kitchen, it could no longer withstand the heat and has opted to leave the scene for others.
In a regulatory document, it was observed that Global Spectrum Energy Services exited the stock market of its volition.
Its application to voluntarily delist its entire 800 million ordinary shares from the daily official list of the Nigerian bourse was approved on December 29, 2022.
Business Post reports that the request for the company to part ways with the Nigerian exchange was filed by its stockbroker, Compass Investments and Securities Limited.
Five years ago, when it joined the exchange, its Managing Director, Mr Colm Doyle, stated that the company planned to increase its profit over a five-year period from N847.87 million in 2018 to N2.62 billion by 2022.
According to him, as the company continues to implement its expansion plan that will ensure a year-on-year increase in profit, the firm has decided to give out a minimum of 30 per cent of its profit as dividends to its shareholders.
A look at the performance of the company on the stock market showed that as of January 5, 2023, when it recorded the last transactions, its share price closed flat at N2.48 per unit, which is 50.4 per cent or N2.52 lower than its listing price of N5.00.
The audited results of Global Spectrum Energy Services for 2021 showed that revenue went down by 11.96 per cent to N1.954 billion from N2.220 billion, as profit-after-tax dropped 39.46 per cent to N127.0 million from N209.8 million.
In the first quarter of 2022, the firm grew its revenue to N670.8 million from N346.4 million, while the net profit jumped to N89.9 million from N15.2 million.
In the second quarter of the year, this feat was repeated as revenue rose to N699.2 million from N445.7 million, leaving the half-year earnings at N1.4 billion versus N786.3 million in H1 of 2021, while the post-tax profit dropped to N56.5 million in Q2 from N65.7 million in Q2 of 2021, though the HY of 2022 jumped to N146.4 million from N90.9 million in HY of 2021.
In the third quarter of last year, its earnings rose to N861.2 million from N506.1 million, with the nine months at N2.2 billion versus N1.3 billion in the corresponding period of the preceding year, while the net profit from July to September 2022 stood at N54.4 million, in contrast to N37.5 million in the same months of 2021, leaving the nine-month profit at N200.7 million versus N128.3 million.
In 2017, the organisation made a projection that by 2022, its turnover was expected to grow from N3.88 billion in 2018 to N8.1 billion.
A five-year review of the company’s performance before joining the bourse showed that turnover declined from N986.45 million in 2013 to N934.62 million in 2017, while profit before tax grew from N165.31 million in 2013 to N347.13 million by October 2017.
By Adedapo Adesanya
The duo of Geo-Fluids Plc and Afriland Properties Plc propelled the NASD Over-the-Counter (OTC) Securities Exchange up 0.13 per cent on Friday, January 10.
Investors gained N1.4 billion during the trading session after the market capitalisation of the bourse ended at N1.053 trillion compared with the previous day’s N1.052 trillion, and the NASD Unlisted Security Index (NSI) increased at the close of business by 4.07 points to wrap the session at 3,073.93 points compared with 3,069.86 points recorded at the previous session.
Geo-Fluids added 25 Kobo to its value to close at N4.85 per unit compared with the previous session’s N4.60 per unit, and Afriland Properties Plc gained 24 Kobo to close at N16.25 per share versus Thursday’s closing price of N16.01 per share.
There was a 35.4 per cent fall in the volume of securities traded in the session as investors exchanged 4.3 million units compared to 6.6 million units traded in the preceding session, the value of shares traded yesterday went down by 37.4 per cent to N17.2 million from the N27.5 million recorded a day earlier, and the number of deals decreased by 47.2 per cent to 19 deals from the 36 deals recorded in the preceding day.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and Industrial and General Insurance (IGI )Plc with 10.7 million units sold for N2.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.
By Adedapo Adesanya
The Naira witnessed a depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 10.
According to data from the FMDQ Exchange, the local currency weakened against the greenback yesterday by 0.12 per cent or N1.80 to sell for N1,543.03/$1 compared with the preceding day’s N1,541.23/$1.
The pressure on the domestic currency came as the access granted to the Bureaux de Change (BDC) operators by the Central Bank of Nigeria (CBN) to purchase FX from the official market through the Electronic Foreign Exchange Matching System (EFEMS) platform prepares to end next week, precisely on January 19.
The CBN had given a 42-day window to the operators to access the platform to help stabilise the Naira in December, and this expires next week.
On Friday, the Nigerian currency tumbled against the Pound Sterling in the official market by N30.78 to sell for N1,889.29/£1 compared with the previous day’s N1,858.51/£1, but gained N5.48 against the Euro to finish at N1,583.81/€1, in contrast to Thursday’s rate of N1,589.29/€1.
As for the parallel market, the Nigerian Naira remained stable against the US Dollar during the trading session at N1,650/$1, according to data obtained by Business Post.
In the cryptocurrency market, it was bearish as the US economy added 256,000 jobs last month, the Bureau of Labor Statistics reported on Friday, topping forecasts for 160,000 and up from 212,000 in November (revised from an originally reported 227,000).
However, the readings came after a number of recent economic reports triggered a broad-market pullback across asset classes such as crypto as investors quickly scaled back the idea of a continued series of Federal Reserve rate cuts in 2025.
Cardano (ADA) fell by 3.6 per cent to trade at $0.921, Solana (SOL) slumped by 2.8 per cent to $185.93, Ethereum (ETH) depreciated by 1.4 per cent to $3,233.27, Litecoin (LTC) lost 1.3 per cent to finish at $103.62, Dogecoin (DOGE) shed 0.5 per cent to sell at $0.3315, Bitcoin (BTC), waned by 0.2 per cent to $94,154.43, and Binance Coin (BNB) went south by 0.1 per cent to $693.30.
On the flip side, Ripple (XRP) jumped by 1.5 per cent to settle at $2.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
By Dipo Olowookere
Profit-takers took control of Customs Street on Friday, plunging it by 0.08 per cent at the close of trading activities.
The sell-offs were across all the key sectors of the Nigerian Exchange (NGX) Limited on last trading session of the week.
The insurance space went down by 1.53 per cent, the banking index depreciated by 0.41 per cent, the consumer goods sector weakened by 0.16 per cent, and the energy counter slumped by 0.08 per cent, while the industrial goods sector closed flat.
At the close of business, the All-Share Index (ASI) tumbled by 79.68 points to 105,451.06 points from 105,530.74 points and the market capitalisation retreated by N48 billion to N64.303 trillion from N64.351 trillion.
Yesterday, investors traded 1.5 billion shares worth N19.4 billion in 12,877 deals compared with the 489.5 million shares worth N13.1 billion transacted in 13,010 deals in the preceding day, indicating a decline in the number of deals by 1.02 deals and a rise in the trading volume and value by 203.14 per cent and 48.09 per cent, respectively.
Wema Bank was the busiest stock with 976.2 million units valued at N9.8 billion, Tantalizers traded 53.0 million units worth 129.6 million, Universal Insurance sold 34.8 million units for N26.8 million, Access Holdings exchanged 33.9 million units valued at N843.8 million, and Nigerian Breweries traded 27.3 million units worth N873.3 million.
The heaviest loss was suffered by Sunu Assurances with a decline of 9.99 per cent to trade at N7.30, Eunisell shed 9.96 per cent to N17.35, SAHCO crumbled by 9.87 per cent to N30.15, DAAR Communications plunged by 9.28 per cent to 88 Kobo, and Sovereign Trust Insurance went down by 7.04 per cent to N1.32.
On the flip side, C&I Leasing gained 10.00 per cent to close at N4.51, Honeywell Flour appreciated by 9.99 per cent to N10.02, Trans Nationwide Express jumped by 9.89 per cent to N2.00, RT Briscoe rose by 9.83 per cent to N2.57, and Secure Electronic Technology grew by 9.46 per cent to 81 Kobo.
Business Post reports that the bourse ended with 33 price gainers and 25 price losers, indicating a positive market breadth index and strong investor sentiment.
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