Economy
NLNG Revenue Declines to $4.7b in 2016
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.”
By Modupe Gbadeyanka
The federal government, the 36 states of the federation and the 774 local government areas have received N1.727 trillion from the Federal Accounts Allocation Committee (FAAC) for December 2024.
The funds were disbursed to the three tiers of government from the revenue generated by the nation in November 2024.
At the December meeting of FAAC held in Abuja, it was stated that the amount distributed comprised distributable statutory revenue of N455.354 billion, distributable Value Added Tax (VAT) revenue of N585.700 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.046 billion and Exchange Difference revenue of N671.392 billion.
According to a statement signed on Friday by the Director of Press and Public Relations for FAAC, Mr Bawa Mokwa, the money generated last month was about N3.143 trillion, with N103.307 billion used for cost of collection and N1.312 trillion for transfers, interventions and refunds.
It was disclosed that gross statutory revenue of N1.827 trillion was received compared with the N1.336 trillion recorded a month earlier.
The statement said gross revenue of N628.972 billion was available from VAT versus N668.291 billion in the preceding month.
The organisation stated that last month, oil and gas royalty and CET levies recorded significant increases, while excise duty, VAT, import duty, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and EMTL decreased considerably.
As for the sharing, FAAC disclosed that from the N1.727 trillion, the central government got N581.856 billion, the states received N549.792 billion, the councils took N402.553 billion, while the benefiting states got N193.291 billion as 13 per cent derivation revenue.
From the N585.700 billion VAT earnings, the national government got N87.855 billion, the states received N292.850 billion and the local councils were given N204.995 billion.
Also, from the N455.354 billion distributable statutory revenue, the federal government was given N175.690 billion, the states got N89.113 billion, the local governments had N68.702 billion, and the benefiting states received N121.849 billion as 13 per cent derivation revenue.
In addition, from the N15.046 billion EMTL revenue, FAAC shared N2.257 billion to the federal government, disbursed N7.523 billion to the states and transferred N5.266 billion to the local councils.
Further, from the N671.392 billion Exchange Difference earnings, it gave central government N316.054 billion, the states N160.306 billion, the local government areas N123.590 billion, and the oil-producing states N71.442 billion as 13 per cent derivation revenue.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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