Oando Raises Turnover by 26%, PAT by 117% in 6 Months
By Modupe Gbadeyanka
Leading indigenous energy group in Nigeria, Oando Plc, on Monday announced its audited results for the six months period ended June 30, 2017.
It is no doubt that the first half of this year witnessed the country’s production levels steadily recovering to normalcy largely due to relative peace in the oil-rich Niger Delta region.
In addition, the more recent resumption of activity on the Trans Forcados Pipeline has resulted into increase in the volume of oil produced by the nation.
There is also optimism around the approval of the Petroleum Industry Governance and Institutional Framework Bill (PIGB), which should result in a more efficiently regulated sector and a conducive business environment for industry players.
During the period under review, Oando Plc recorded an increase in its turnover by 26 percent, closing at N267.1 billion compared with N213.3 billion recorded in the first half of last year.
Also, its gross profit recorded a growth of 76 percent, finish at N33.4 billion on June 30, 2017, against N19 billion in the corresponding period of 2016.
Furthermore, the oil company posted a profit after tax of N4.6 billion in contrast to N26.9 billion loss it recorded a year ago, indicating a rise by 117 percent.
Commenting on the financial statements, the Group Chief Executive Officer of Oando Plc, Mr Wale Tinubu, stated that, “With security concerns in the Niger Delta receding, Nigeria’s economic recovery has been buoyed by a boost in oil output, while the legislative approval of certain segment of the Petroleum Industry Bill (PIB) provides greater long-term policy certainty for the sector.
“Our returns underline our continued successful foray into the upstream. Within the prevalent crude price regime, we remain committed to optimising out overall production base, seeking unique profit-driven opportunities to further partner with IOCs, while firming up our balance sheet to provide greater shareholder value.”
It was disclosed that Oando Energy Resources (OER) recorded an average production of 39,950 boe/day compared with 44,892 boe/day in the first half of 2016. This reduction was primarily due to significant reductions in gas production and delivery caused by a ruptured Gas Transmission System (GTS-4) gas line, which supplies the firm’s contractual gas to the Nigerian Liquefied Natural Gas Limited (NLNG).
Also, the Trans Forcados Pipeline continued to suffer downtime in the first five months of the year and due to repairs and planned maintenance activities which resulted in reduced production from Ebendo.
In June 2017, the company successfully realised N3.2 billion in net cash from the crystallisation of the Corporate Facility hedges (1,590 bbls/day) via early settlement with hedging counterparties N3.5 billion relating to settlement of hedges offset against N336.5 million representing the cost of the planned reset, which will be utilised in paying down its existing debt obligations.
Participants Learn Money Management, Sustainable Investing Skills
By Aduragbemi Omiyale
Over the weekend, more than 3,000 Nigerians joined a public forum organised by the Nigerian Exchange (NGX) Limited to educate them on money management and sustainable investing skills.
The programme, moderated by US-based financial planner and author, Mr Kalu Aja, was held via a Twitter Spaces session, with the different products available on the exchange, including equities, fixed income, Exchange Traded Funds (ETFs), mutual funds and Exchange Traded Derivatives (ETDs) explained to them by the Head of Product Development at NGX, Ms Chidinma Chukwueke-Okolo.
She spoke about ETFs and mutual funds, which give investors options to diversify their investments and reduce risk in the market, listing examples on NGX.
“ETFs are low-cost passive investment schemes that track the performance of listed indices on the Exchange and help to diversify while Mutual Funds are portfolios of different investor funds pooled by a fund manager to invest actively in the market,” Ms Chukwueke-Okolo added.
She also spoke on responsible investing in accordance with the theme of Global Money Week, explaining to the participants how to access sustainable investment products on NGX.
The capital market expert informed prospective investors to watch out for the recently approved NGX Technology Board, which will feature listings from tech companies who wish to gain access to the capital market, urging investors to take advantage of NGX’s website to do their research on the market and improve their knowledge.
Also speaking, the chief executive of MoneyAfrica and Ladda.ng, Ms Tosin Olaseinde, gave practical investing tips to listeners and stressed the importance of long-term investing, budgeting and saving on financial security.
“You have to be intentional about cultivating good financial habits. Also, understand your risk appetite and diversify between low, medium and high-risk investments,” she posited.
AM Best Affirms AXA Mansard Insurance Credit Ratings
By Modupe Gbadeyanka
The credit ratings of a leading underwriting company in Nigeria, AXA Mansard Insurance Plc, have been affirmed by a reputable rating agency, AM Best.
The ratings affirmed were the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good), with the outlook stable.
AM Best explained that the ratings reflect the strength of AXA Mansard’s balance sheet, which it said was strong.
“The ratings also reflect rating enhancement, in the form of lift, from AXA Mansard’s ultimate parent, AXA S.A,” a statement from AM Best said.
“AXA Mansard’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
“Capital consumption is primarily driven by asset risk, which incorporates the company’s substantial real estate investments,” it added.
The rating firm said it expects prospective operating performance to be supported by corrective underwriting measures in the health portfolio, as well as positive contributions from the company’s life book, affirming that the insurance company has a solid foothold in its domestic market where it ranks among the largest non-life companies, and it enjoys a leading market position in the health segment.
“With good long-term growth prospects, AXA Mansard is expected to further strengthen its competitive market position over the coming years,” a part of the statement noted.
Commenting on the ratings, the Chief Financial Officer of Axa Mansard, Ms Ngozi Ola-Israel, said “the affirmation of our ratings by an agency like AM Best lends credence to the significant improvement in our internal capital generation abilities with a strong focus on continuously improving our underwriting performance through technical excellence.”
Also speaking on the ratings, the Chief Executive Officer of Axa Mansard, Mr Kunle Ahmed, said the efforts put in place by the team to build a world-class insurance company were yielding positive results.
“The affirmation of our ratings as stable and the retention of our FSR and ICR ratings despite the exposure to the high levels of economic, political and financial system risks further testify to our strong leading position and capacity to provide security for our stakeholders and ability to protect what truly matters to them,” he stated.
AM Best Company is a global credit rating agency with over 100 years of history of providing quantitative and qualitative assessments for Insurance companies, with its Best’s Credit Rating Methodology used to determine the financial strength and creditworthiness of insurance companies.
AM Best is the world’s oldest and most authoritative insurance rating and information source.
Over-the-Counter Stock Market Swells by N49.17bn in Week 12
By Adedapo Adesanya
The value of the NASD over-the-counter Securities Exchange increased in the 12th week of trading last week for the fifth straight week by N49.17 billion or 5.1 per cent to N1.01 trillion from N961.12 billion in the previous week.
This was influenced by the admission of Purple Real Estate Income Plc into the OTC stock market and it made it the second time the bourse was hitting the N1 trillion mark after Access Bank Plc pushed the market to that region last year.
Business Post observed that the inclusion of Purple Real Estate Income into the platform caused the expansion, but the market on its own closed weaker as the NASD Unlisted Securities Index (NSI) fell by 0.15 per cent or 1.07 points to settle at 730.37 points compared with 731.44 points recorded in the previous week.
In the week, 11 Plc lost 6.7 per cent to close at N140.00 per unit versus N150.00 per unit, Central Securities Clearing System (CSCS) depreciated by 1.4 per cent to N14.00 per share compared with N14.02 per share, First Trust Microfinance Bank Plc declined by 9.6 per cent to close at 47 Kobo per share from 52 Kobo per share, and Industrial and General Insurance (IGI) Plc shed 12.5 per cent to end at 7 Kobo per unit, in contrast to the preceding week’s 8 Kobo per unit.
On the flip side, FrieslandCampina Wamco Nigeria Plc appreciated by 1.2 per cent to N76.00 per share from N75.11 per share, and Geo-Fluids jumped by 32.4 per cent to N1.8 per unit from N1.36 per unit.
On the activity chart, IGI Plc was the most traded stock by volume last week with 45.96 million units, Geo-Fluids Plc traded 36.90 million units, and First Trust Microfinance Bank Plc transacted 4.89 million.
Conversely, Geo-Fluids Plc was the most active stock by value with N56 million, Nipco Plc followed with N9 million, FrieslandCampina Wamco Nigeria Plc posted N9 million, and 11 Plc raked in N4 million.
At the close of transactions, there was a 61.1 per cent decrease in the trading value to N88.8 million from N228.5 million, while the trading volume rose by 109.3 per cent to 88.2 million units from 42.1 million units, with the number of deals declining by 4.3 per cent to 45 deals from 47 deals.
In the year, the alternative stock exchange has recorded a turnover of 700.3 million units of securities valued at N2.60 billion traded in 735 deals.
Latest News on Business Post
- Bigi Cherry Cola Lover Wins Car in 3rd Watch and Win Promo March 27, 2023
- Participants Learn Money Management, Sustainable Investing Skills March 27, 2023
- Lagos Laments Return of Commercial Motorcycles in Eti-Osa, Others March 27, 2023
- The Exciting Relationship Between Women and Mobile Money in Africa March 27, 2023
- Osun to Access $618m Creative, Digital Fund March 27, 2023
- UNN Confers Doctorate Degree on Zenith Bank’s Ebenezer Onyeagwu March 27, 2023
- Stanbic IBTC Commends Customers for Embracing Savings Culture March 27, 2023
- AM Best Affirms AXA Mansard Insurance Credit Ratings March 27, 2023
- Over-the-Counter Stock Market Swells by N49.17bn in Week 12 March 27, 2023
- ILO Lauds Nigeria on Pro-Labour Commitments, Policies March 27, 2023