Economy
Notore Chemical Makes Move to Address Red Flag Raised by Auditors
By Dipo Olowookere
This week, precisely on Tuesday, December 31, 2019, the Nigerian Stock Exchange (NSE) posted the audited financial statements of Notore Chemical Industries Plc for its full year ended September 30, 2019 on its online platform.
In the brief analysis of the results by Business Post, it was observed that the revenue generated by the firm in the period under review depreciated to N21.4 billion from N26.8 billion, while the gross profit reduced to N4.0 billion from N9.6 billion, with operating profit going down to N3.4 billion from N9.2 billion.
In the period under review, the company declared a loss before tax of N10.3 billion against N3.5 billion a year earlier and a loss after tax of N5.8 billion in contrast to N1.9 billion 12 months ago.
The firm enjoyed a deferred income tax of N4.5 billion in the period under consideration, higher than the N1.6 billion it similarly had in the corresponding period of 2018. A look at the earnings per share (EPS) showed a -N3.57 compared with -N1.18 in the previous financial year.
One of the things that caught the attention of Business Post in the results is the report of the auditors, PwC, which said Notore Chemical may be unable to realise their assets and discharge their liabilities in the normal course of business.
“We draw attention to Note 29 to the consolidated and separate financial statements, which indicates that the group and company incurred net losses of N5.75 billion and N5.68 billion respectively for the year ended September 30, 2019 and, as of that date, the group and company had net currency liabilities of N37.03 billion and N37.71 billion respectively.
“As stated in Note 29, these events or conditions, along with other matters as set forth in Note 29, indicate that a material uncertainty exists that may cast significant doubt on the group and company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter,” the auditors stated.
A check on the Note 29 showed that the company agreed with the red flag raised by PwC, but said it was putting up measures to return the company to profitability and improve working capital.
“Management has embarked on a Turn Around Maintenance (TAM) of its production plant and equipment to improve its reliability and increase production output. The TAM programme will involve replacement/rehabilitation of some critical production equipment, stock up of some critical equipment spares and acquisition of a back-up 44 megawatts gas turbine,” the firm said in the financial statements.
“This will be funded by a seven-year tenured loan of $37 million to be obtained from the African Export-Import Bank. The approval for disbursement of the loan has been obtained,” it added.
Notore Chemical said some equipment in the TAM programme have already been purchased and installed using the company’s operating funds, while some other critical equipment with long lead times have been ordered and are awaiting delivery.
“The early works done under the TAM programme have begun to have some positive impact on plant reliability and sustained production, as the plant recorded a remarkable landmark achievement of uninterrupted round the clock operations of 100 consecutive days on December 15, 2019. This is the longest period of uninterrupted consecutive plant operations achieved in the history of the company,” it further said.
It further said the TAM programme is estimated to last a period of 12 months with completion time set for end of Q3 of 2020, adding that the TAM programme, once completed, is expected to improve significantly the plant’s reliability and production output to meet and sustain its 500,000 MT per annum design nameplate capacity.
“Achieving this level of production output will not only lead to significant improvements in the Group and company cashflows from operations, but also significantly increase annual revenues post the TAM programme,” the Note 29 pointed out.
“The directors are of the firm belief that upon implementation of the plans mentioned above, there would be significant reduction in the company’s debts, whilst also improving the reliability of the plant, thereby returning the company to profitability,” it added.
On Friday, Notore Chemical, in a disclosure, said the TAM programme is expected to “also increase reliability index from the current level of 67 percent to 95 percent” especially with the acquisition of N13 billion loan facility from African Export-Import Bank and with the objective “to accomplish the maintenance activities within a period of 30-day production to production.”
By Adedapo Adesanya
APM Terminals Apapa has reported a 31.5 per cent increase in export volumes for April 2025, reaching its highest monthly figure since operations began in 2006.
The terminal handled 8,687 twenty-foot equivalent units (TEUs) of export cargo, up from 6,606 TEUs in April 2024.
According to the terminal manager, Mr Steen Knudsen, this underscores a major milestone in Nigeria’s growing export momentum and reflects years of sustained growth and strategic investment in export infrastructure.
“It’s advantageous for Nigerian shippers when ships depart our ports fully loaded with exports. Preventing ships from leaving empty positively influences the overall cost of shipments into Nigeria,” he said.
Mr Knudsen attributed the growth to targeted operational improvements and alignment with national economic priorities.
“Our aim aligns with the Federal Government’s vision of transforming Nigeria into an export-driven economy. To support this, we launched a new rail service in February to expedite the movement of goods from the hinterland to Apapa port,” he revealed.
“We’ve expanded our yard capacity for exports and introduced dedicated truck lanes to streamline the process, reducing the time exports spend in the terminal and ensuring timely ship departures,” he added.
Mr Knudsen praised top agencies including Nigerian Ports Authority (NPA) and Nigerian Railway Corporation (NRC) for their support in enabling the terminal to focus on delivering top-tier services to its customers.
Since acquiring the Apapa concession, the company has made significant capital investments to boost capacity, efficiency, and overall terminal productivity.
In the last four years, APM Terminals Apapa has recorded a steady rise in export volumes. In 2022, the terminal handled 53,807 TEUs of exports. This number rose to 70,432 TEUs in 2023 and 77,631 TEUs in 2024.
As Nigeria’s largest container terminal and a subsidiary of the A.P. Moller Maersk Group, APM Terminals Apapa continues to play a central role in the modernization and expansion of the country’s maritime logistics network.
By Aduragbemi Omiyale
President Bola Tinubu’s Senior Special Assistant on Entrepreneurship Development in Communications, Innovation and Digital Economy, Ms. Chalya Shagaya, has commended Legend Internet Plc for listing its shares on the Nigerian Exchange (NGX) Limited.
Last month, the internet service provider (ISP) listed about two billion stocks valued at N12.4 billion on the local bourse, becoming the first indefinite telecom operator in Nigeria to do so, reflects strong investor confidence in nation’s digital economy.
Speaking during a visit to the headquarters of the organisation, Ms Shagaya praised the team led by Mr Bruce Ayonote for the achievement.
“The listing of Legend Internet Plc is not just a corporate achievement, it is a national win. It sends a powerful message to indigenous digital and tech companies that the capital markets are within reach,” Ms Shagaya stated.
The President’s aide further highlighted the alignment of this success with the Renewed Hope Agenda of her boss, emphasising the administration’s dedication to building a business-friendly environment driven by digital transformation and inclusive economic growth.
She also applauded the tech firm for its inclusivity efforts, noting that the majority of its executive and senior members of staff are women, describing this as a progressive example of gender representation in leadership, which aligns with national goals for women’s inclusion in economic development.
Ms Shagaya expressed her readiness to support Legend Internet and its affiliate company, Suburban, in future initiatives, including expansion of digital infrastructure, innovation policy development, and capacity building programs for entrepreneurs.
She also stressed the ripple effect such achievements could have on the broader ecosystem, from enhancing local content development and broadband access to creating jobs and fostering innovation, encouraging the organisation to further engage in mentorship, tech training, and entrepreneurship support initiatives.
“Legend Internet’s story is one of vision, resilience, leadership, and inclusivity. It is the kind of story this administration is proud to champion and we look forward to partnering with more companies that are pushing the boundaries of what is possible,” she stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.64 per cent increase on Monday, May 12, with its total value rising by N12.46 billion to N1.947 trillion from the N1.935 trillion quoted at the preceding session, as the NASD Unlisted Security Index (NSI) went up by 21.28 points to 3,326.06 points from 3,3204.74 points.
The expansion recorded during the first trading session of the week was influenced by price appreciation in the shares of three companies admitted to the platform.
Central Securities Clearing System (CSCS) went up by N2.25 to trade at N24.85 per unit versus last Friday’s N22.60 per unit, FrieslandCampina Wamco Nigeria Plc improved its value by 40 Kobo to settle at N40.43 per share from the previous closing value of N40.03, per share, and Geo-Fluids Plc added 10 Kobo to end at N1.91 per unit, on contrast to the preceding session’s N1.81 per unit.
During the trading day, the volume of shares bought and sold by the market participants decreased by 99.7 per cent to 673,233 units from the 231.6 million units traded in the previous trading day, the value of securities transacted by investors moderated by 98.9 per cent to N6.3 million from N606.4 million, and the number of deals retreated by 38.6 per cent to 35 deals from 57 deals.
When trading activities finished for the day, the most active stock by volume on a year-to-date basis remained Impresit Bakolori Plc with a turnover of 534.0 million units worth N521.1 million, followed by Geo-Fluids Plc with 266.4 million units valued at N470.5 million, and Okitipupa Plc with 153.6 million units sold for N4.9 billion.
The most traded stock by value on a year-to-date basis also remained Okitipupa Plc with the sale of 153.6 million units for N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 20.0 million units valued at N768.5 million, and Impresit Bakolori Plc with a turnover of 534.0 million units worth N521.1 million.
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