Economy

NLNG Revenue Declines to $4.7b in 2016

Published

9 years ago

30/03/2017

By Modupe Gbadeyanka

Nigeria Liquefied Natural Gas (NLNG) has released its unaudited financial statement for the year ended December 31, 2016, declaring a decline in its earnings for the period under review.

In the statements, the firm said its revenue slumped by 30.98 percent from $6.84 billion recorded in 2015 to $4.72 billion in 2016.

The company said despite the sharp drop in its revenue, its capital investment appreciated slightly by 1.98 per cent to $881.84 million from $864.76 million recorded in the previous year.

However, the drop in revenue, negatively affected its dividends payout, as it paid $737.086 million in dividends to its shareholders — the Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni 2016.

The amount paid as dividends in 2016 represented a 65.89 percent decline when compared to total dividends of $2.161 billion paid to shareholders in 2015.

In addition, the report pointed out that $717.72 million was expended by the NLNG to purchase gas from the NNPC in 2016, compared to $1.18 billion in the previous year, while $593.16 million worth of gas was purchased by the NLNG from Shell, Total, Agip and Conoco Philip in 2016, compared to $961.97 million in 2015.

The NLNG, according to the report, also paid local contractors $565.64 million for goods and services, dropping by 7.4 percent from $610.82 million paid out to local contractors in 2015.

To this end, the report stated that the NLNG had from 1999 to December 31, 2016, recorded total revenue of $95.09 billion; total capital investment of $16.57 billion; total dividends paid to the NNPC stood at $15.7 billion; while Shell, Total and Eni received $16.45 billion as total dividends in the 18-year period.

Also, NLNG’s total gas purchases from the NNPC from 1999 to 2016 stood at $12.588 billion; gas purchases from Shell, Total, Agip and Conoco Philip stood at $10.29 billion over the same period; while total payments to local contractors for goods and services from 1999 to 2016 stood at $5.66 billion.

The NLNG disclosed that in a proactive bid to discover more Nigerian sources, Nigerian Content surveys and vendor forums were conducted at scheduled intervals to identify indigenous companies capable of providing the goods and services required by NLNG.

It also stated that through its initiative to empower local contractors via the Finnima Legacy Project, five host community-based contractors had made capital investments in their companies thereby expanding their operating capacity, while it had also strategic partnerships between the more established Nigerian vendors and the community vendors.

The NLNG further disclosed that about 54 vendors had been trained at the Bonny Vocational Centre to improve their skills in business development and project management, while its deliberate strategies implemented to increase spend in some communities had led to a significant increase in year-on-year spend with direct spend increasing by over 100 percent between 2011 and 2013 and even further in 2014.

It said, “Doing business with Nigeria LNG has engendered improvement in some of our vendors’ business processes, and led them to upgrade their facilities and capacity to meet very stringent requirements.

“In the past, for instance, NLNG worked with Dorman Long Nigeria Limited and Nigerdock Nigeria PLC to enhance their galvanisation capability, with Nexans Kabelmetal to increase manufacturing capacity and with Nigerian Foundries to improve their processes for the manufacture of trench gratings and manhole covers.”

http://sweetcrudereports.com/

Economy

Lokpobiri Hails Petroleum Reforms Amid Surge in Investments

Published

1 hour ago

15/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said ongoing reforms and strategic policy implementation in Nigeria’s petroleum sector are driving significant investments and strengthening the country’s position as a leading energy destination in Africa.

Mr Lokpobiri stated this at the Management Retreat of the Ministry of Petroleum Resources, where he stressed the need for improved institutional performance and accountability to sustain growth in the sector.

According to the Minister, the federal government has deliberately pursued far-reaching reforms aimed at creating a stable and investor-friendly environment capable of attracting local and foreign capital into the oil and gas industry.

“From far-reaching institutional reforms to the effective implementation of strategic policies, we have remained committed to carrying all stakeholders along, fostering a conducive environment for investments to flourish,” Mr Lokpobiri said.

“As a result, our petroleum sector has witnessed significant investments that continue to strengthen Nigeria’s position as a leading energy destination.”

The Minister noted that the gains recorded in the sector were the product of collective efforts across the Ministry and its agencies, commending staff for their dedication and professionalism.

“The Management Retreat of the Ministry of Petroleum Resources provided an important platform to reiterate that these accomplishments would not have been possible without the collective dedication, professionalism and teamwork of every staff member across the Ministry and its agencies,” he stated.

Mr Lokpobiri said the retreat, themed Driving Institutional Performance and Accountability in the Petroleum Sector for Sustainable National Development, underscored the importance of continuous improvement in service delivery and operational efficiency.

Drawing lessons from the theme, he urged officials of the Ministry and regulatory agencies to intensify efforts toward enhancing institutional effectiveness and strengthening governance frameworks.

“I encouraged that we must redouble our efforts, continuously improve the quality of our services, and strengthen institutional performance,” he said.

The Minister further emphasised the continued relevance of fossil fuels in the global energy mix, stressing that Nigeria must leverage its hydrocarbon resources to drive economic growth while ensuring citizens benefit from ongoing reforms.

“With fossil fuel as the dominant source of energy, we must ensure that Nigerians experience the benefits of our progress and that Nigeria remains the preferred investment destination in Africa and a globally competitive hub for energy investments,” Mr Lokpobiri added.

Economy

Universal Insurance Extends N3.2bn Rights Issue to June 22

Published

1 hour ago

15/06/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.

The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.

The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.

In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.

Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.

The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).

Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.

Economy

4.964 billion Shares Worth N207.5bn Exchange Hands in 235,966 deals in Four Days

Published

2 hours ago

15/06/2026

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.

In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.

Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.

The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.

Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.

A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.

ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.

The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.

As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.

Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.