Chevron and Eni, two of the global oil majors operating in Nigeria, and their local counterparts such as Seplat and Oando may have been worst hit by the production disruptions occasioned by militant attacks in the Niger Delta, their financial results have shown.
Chevron Corporation, the second largest United States-based oil producer, lost $1.47bn in the second quarter of this year, its largest since 2001, compared with a net profit of $571m in the same period of 2015.
The company said last Friday that its worldwide net oil-equivalent production was 2.53 million barrels per day in the second quarter of 2016, compared with 2.60 million barrels per day a year ago.
Italian oil major, Eni, posted a net loss of €446m in the second quarter of 2016, as against a net profit of €498m in the same period of 2015.
Its oil and gas production fell by 2.2 per cent to 1.715 million barrels of oil equivalent per day, with liquids down by 5.6 per cent at 852,000 bpd.
The Chief Executive Officer, Eni, Claudio Descalzi, said the loss of Nigerian production over the period was 13,000 boepd, adding, “Hydrocarbon production beat expectations, offsetting the suspension of activity in Val d’Agri and the disruptions in Nigeria.”
Two other international oil companies in Nigeria, ExxonMobil Corporation and Royal Dutch Shell Plc, last week reported their lowest quarterly profits since 1999 and 2005, respectively.
Shell, which announced a 72 per cent drop in second-quarter earnings, said its liquids production available for sale in Nigeria plunged by 41 per cent in the second quarter of this year to 37,000 bpd.
Seplat Petroleum Development Company Plc, a major indigenous independent oil and gas company, recorded a net loss of $61m in the first half of the year, for the first time in its six years of operation.
The company said its average working interest production during the first six months was 25,695 boepd, compared to 32,580 boepd in 2015.
It said the reported production figures reflected the longer-than-expected suspension of oil production following the declaration of force majeure at the Forcados terminal by the operator, Shell Nigeria, on February 21 after the disruption in production and exports caused by a spill on the terminal subsea crude export pipeline.
The Chief Executive Officer, Seplat, Mr. Austin Avuru, said the first half results were heavily impacted by events outside of the company’s control.
He said, “The shut-in and suspension of oil exports at the Forcados terminal since mid-February mean we have faced significant challenges in the first half of the year. However, our underlying fundamentals remain strong and we continue to invest to grow our gas business at a rapid rate.”
Oando Plc announced on Tuesday that it made a loss-after-tax of N27bn in the first half of this year, compared to the N35bn lost a year ago.
The company said its daily production volumes dropped to about 45,000 boepd in the first half of this year from about 56,000 boepd in the same period of 2015 as a result of the operating challenges in the Niger Delta.
The Group Chief Executive, Oando, Mr. Wale Tinubu, said, “The first half of the year has attested to the deplorable state of security in the oil and gas environment in Nigeria, having experienced a 25 per cent decline in production volumes arising from the increased disruptions from militant activities.”
FG Starts Registration, Categorization For Nigerian Fish Farmers
The Federal Government of Nigeria, in its bid to solve the food crisis in the country, has kick-started the registration and categorization of all fish farms across the country. This move is also aimed at fighting the country’s economic challenges and encouraging export, inspection, data collection and record-keeping.
Investors King gathered that the Federal Department of Fisheries & Aquaculture, alongside states of the federation will commence the operation in the coming weeks.
This development was disclosed at the end of a capacity-building training for fisheries officers and stakeholders involved in fish farming, processing and export recently.
During the training which was organized by the Norwegian Seafood Council (NSC), participants urged the Federal Department of Fishery to hasten the completion and perfection of the Aquaculture Residue Monitoring Plan for approval, in order to enable the export of farmed fish into the European Union and other countries.
In the same vein, the Norwegian Customs has said that Nigerians can now export fish to Norway without duties. However, the products must be of standard quality.
“Exporters of Nigerian farmed fishes can only enjoy the zero duty rate the moment the ban on such fishes is lifted by the European Union”, the Customs said.
Meanwhile, the Central Bank Nigeria (CBN) has expressed concerns over the absence of off-takers for fishery farmers in Nigeria. The bank said the situation is affecting the Bank’s ability to intervene in the aquaculture Anchor Borrowers’ initiative.
At the training, an official of the Development Finance Department, CBN, Mr. Samson Alatise said that the CBN is set to support the growth of the fishery sector in Nigeria “if there are the willing anchors that will take up the farmed fishes from the farmers.”
Alatise stated that there is a committee set up by the federal government to checkmate the activities of the sector in the absence of an undertaker. He also said that the “development is limiting the Bank’s participation in funding the aquaculture of ‘Cat’ and ‘Tilapia’ fishes.
‘‘We are keen on funding aquaculture; the issue is that there is no viable anchor and this has limited the CBN’s participation in terms of growing the fishery sector.
“The CBN wants to see how it can be assisted to overcome the issue of non-availability of anchor,” Alatise added.
Walmart, Amazon, Apple, Others Top 2022 Fortune 500 List
Walmart took the top spot for the tenth year in a row, generating $5.1 trillion cumulative revenue over that time
Fortune Magazine has released the 68th edition of their annual list of the top 500 US companies with Walmart, Amazon, and Apple topping the list.
Fortune 500 list is an annual list of the top 500 largest companies in the United States, ranked based on the total revenue each of the companies generated in their respective fiscal years. It is compiled by Fortune Magazine.
A check by Investors King shows 2022 top 500 largest companies in the United States earned a combined $16.1 trillion in revenue and realised $1.8 trillion in profits. Indicating that the 2021 revenue grew by $6.4 billion, or 19% when compared to 2021 numbers.
Breaking down this year’s list, Walmart took the top spot for the tenth year in a row, generating $5.1 trillion cumulative revenue over that time. Amazon.com came second with a 22% increase in revenue in 2021 to cross the $450 billion threshold.
Apple, perhaps the most profitable company on the list for the eighth time in eight years, generated profits of $95 billion to sit in the number three position.
CVS Health and CEO Karen Lynch strive to produce Fortune 500 history as the highest-ranking firm ever led by a female CEO, at number 4.
UnitedHealth Group maintained its position as USA’s largest health insurance provider, with considerable growth in 2021. The corporation served 2.2 million more individuals this year than the previous year, and revenue increased by 12% to $287 billion, making it claim the 5th spot.
Exxon Mobil has risen from 10th to 6th place on the Fortune 500 after a difficult, pandemic-affected 2020. After COVID-related limitations drove energy consumption and oil and gas prices to plunge, Exxon Mobil trimmed costs to shore up its balance sheet, laying off 9,000 employees. These measures, combined with a resurgence in oil prices, let the business earn more than $23 billion in 2021, its highest annual profit in seven years.
Warren Buffet’s Berkshire Hathaway generated the second-largest profits among Fortune 500 firms last year, with $90 billion in net income. Its stock also soared, returning 23.2 percent in 2021, putting it in the 7th position.
Alphabet had a spectacular record, reaching $200 billion in sales for the first time. Alphabet was the best-performing Big Tech stock in 2021, with shares up nearly three times the Nasdaq’s 22 percent gain. It also put aside $50 billion for share repurchases and announced a 20-to-1 stock split to stimulate more investment. With steady growth in revenue and profit from 2006, Alphabet took the 8th spot.
Mckesson, one of the largest drug distributors in the country ranked 9th with a clear revenue of $238,228 million in the 2021 fiscal year despite a $4.5 billion loss.
Despite a fall in this year’s ranking, AmerisourceBergen increased its revenue by 12.7%, to $214 billion for the 2021 fiscal year. The company ranked 10th, following its counterpart, Mckesson.
2022 Top 10 Fortune 500 List
- CVS Health
- United Health Group
- Exxon Mobil
- Berkshire Hathaway
Kaduna Airport Finally Resumes Operation, Azman Air Becomes First Airline to Reopen
After it suspended all flight operations for almost two months, the Kaduna Airport has finally resumed its flight operations, starting with Azman Air.
The Federal Airports Authority of Nigeria (FAAN) announced that the Kaduna airport has commenced full flight operations after it was shut down due to an attack by gunmen.
The acting General Manager, Corporate Affairs, Federal Airports Authority of Nigeria (FAAN), Faithful Hope-Ivbaze, confirmed to newsmen on Monday that “Flight operations to Kaduna airport have commenced today with Azman Air.”
Investors King gathered that Azman Air, via its official Twitter account, announced the resumption of flights to the Kaduna airport, making it the first airline to resume operations.
The tweet reads: “Azman Air landed at Kaduna Airport today 23rd May 2022, to the elation and cheers of passengers, stakeholders, and staff.
“Azman Air is the first Airline to resume operations in the Kaduna Airport after it has been closed for almost two months.
“It was a defining moment for the aviation community as the airport is reopened after being closed for two months. It’s so exciting to be back!”
The airport manager, Aminat Salami, said: “As you can see, I have all my management staff here. We have been closed from the 26th of March, close to two months and I’m very sure and you can see we are all excited and happy and I’m praying that Azman will continue their operations successfully and they should not be discouraged by the first flight because people are not really aware”.
“We will try to do more of the video advert so that the passengers would improve as time goes on,” she added.
Recall that in March, it was reported that gunmen attacked the airport and killed a security guard while the Kaduna-Abuja train was also attacked on the same day.
The airline had stopped its flight operations into Kaduna following the attack at the airport eight weeks ago.
The attack was however repelled by the airport security operatives.
Finance3 weeks ago
Dollar to Naira Today Thursday, 5 May 2022
Finance4 weeks ago
Kigali to Host the Commonwealth’s Landmark African Anti-corruption Conference
Banking Sector4 weeks ago
FirstBank Wins Best Bank in Nigeria and Best Bank in Digital Transformation Nigeria 2022
Banking Sector3 weeks ago
FY 2021: Unity Bank Grosses N50.28bn in Earnings and N3.33bn in Profit
Banking Sector3 weeks ago
World Earth Day 2022: Unity Bank, RESWAYE Clean Lagos Beach, Plant Trees
Banking Sector3 weeks ago
FirstBank Goes Beyond Banking, Reiterates Commitment To Healthcare Via Pharmacy Credit Facility, Hospital Loans
Banking Sector3 weeks ago
Fidelity Bank Announces 29% Increase in Gross Earnings in Q1 2022
Investment2 weeks ago
72% of North American Quant Fund Managers Struggle to Access High Quality Data