The Nigerian National Petroleum Corporation, NNPC, weekend disclosed that it paid $48.99 million to the Federation Account in two months, June and July 2016.
The NNPC, in its Monthly Financial and Operations Reports, revealed that the payment was after its failure to make any dollar remittances to the Federation Account Allocation Committee, FAAC, for 14 months, from April 2015 to May 2016.
This, according to the report, is mainly due to declining crude oil earnings, which led to the NNPC transferring all dollar proceeds from crude oil and gas export sales to payments for Joint Venture Cash Call.
Specifically, the NNPC’s last foreign exchange (dollar) remittance to the Federation Account was in March 2015, when it paid $184.978 million to FAAC.
For the month of June 2016, the report pointed out that the NNPC remitted $4.866 million, while $44.125 million was remitted in the month of July 2016.
In addition, the report noted that in a 12-month period, from August 2015 to July 2016, only the amount remitted for June and July 2016, $48.99 million, had been paid into the Federation Account, while of a total NNPC crude oil and gas export sales proceed of $3.212 billion, $3.163 was utilised for Joint Venture cash call funding.
Giving further breakdown, the NNPC report said, “Total export revenue of $226.47 million was recorded in June, 2016 representing 21 per cent increase relative to preceding performance. Crude oil export sales contributed $153.011 million (or 67.56 per cent) of the dollar transactions compared with $68.89 million contribution in previous month. Also the export gas sales amounted to $73.46 million in the month of June, 2016. Twelve month crude oil and gas transactions indicate that crude oil and gas worth $3.254 billion was exported.
“Total export proceeds of $212.25 million were recorded in July 2016 as receipt. Contribution from crude oil amounted to $145.51 million while gas proceeds was $64.21 million and miscellaneous receipt amounting to $2.53 million.
Continuing, the NNPC said, “The poor performance is attributable to upsurge in attack and sabotage of oil facilities in the Niger Delta. At Forcados Terminal alone about 300,000 barrels of oil per day, bopd, were shut in since February 2016 following force majeure declared by Shell Petroleum Development Company, SPDC.
“A number of crude oil liftings were deferred until the repair is completed. Other major terminal affected by the renewed spate of vandalism includes Bonny, Usan and Qua Ibo terminals.
“Total export crude oil and gas receipt for the period of August 2015 to July 2016 stood at $3.21 billion. Out of which the sum of $3.16 billion was transferred to Joint Venture (JV) cash call in line with 2015/2016 approved budget and the balance of $0.49 billion was paid to Federation Account.
“However, this amount falls short of the calendarised appropriated amount of $615.80 million and $712.46 million for 2015 and 2016 respectively. This is due to worsening production and fall in crude oil price.”
Remits N98.8bn in two months
On the other hand, the report added that the NNPC remitted N98.844 billion in the months of June and July to the Federation Account from the domestic sales of crude oil and gas.
Specifically, N62.288 billion and N36.556 billion were remitted by the NNPC to the Federation Account in June and July 2016 respectively.
To this end, the report stated that out of total earnings of N993.33 billion from domestic crude oil and gas sales recorded from August 2015 to July 2016, N111.4 billion was utilised for Joint Venture cash call (naira only) payments, while N881.93 billion was remitted to the Federation Account in the 12-month period.
Unity Bank Forecasts N380.815 Million Profit for Q3 2021
Unity Bank Plc on Friday predicted profit after tax of N380.815 million for the third quarter (Q3) ending September 30, 2021.
This represents a decrease of N162.3 million year-on-year when compared to the N543.14 million recorded in the same quarter of 2020.
The lender projected gross earnings of N10.890 billion for the quarter while interest income was expected to hit N7.204 billion.
Interest expense was estimated at N5.351 billion for the period. Unity Bank puts net revenue from funds at N1.853 billion in Q3 2021.
Other incomes were expected at N3.686 billion and impairment for credit loss was projected at N885.663 million in the quarter under review.
The bank forecasts net operating income at N4.653 billion and puts operating expenses at N4.237 billion.
Profit before tax was projected to hit N416.191 million in the quarter, below the N590.4 million achieved in the same quarter of 2020.
Unity Bank’s Cashflow Projections for the Third Quarter Ending September 30, 2021 (₦)
Net cash provided by operating activities 1,720,815,055
Net cash flow provided by/(used) in investing activities (260,034,996,531)
Net cash flow from operating and investing activities (258,314,181,476)
Net cash used in financing activities 258,694,996,531
Net increase/(decrease) in cash and cash equivalents 380,815,055
Cash and cash equivalents, beginning of period 107,494,314,017
Cash and cash equivalents, end of period 107,875,129,072
Ecobank Raises US$350 Million Tier 2 Sustainability Notes
Ecobank Transnational Incorporated (“ETI”), a Lomé based parent company of the Ecobank Group listed on Nigerian Exchange Limited, announced it has successful raised US$350 million Tier 2 Sustainability Notes.
This represents the first ever Tier 2 Sustainability Notes by any financial institution in Africa.
The lender disclosed in a statement signed by Adenike Laoye, Group Head Corporate Communications/Chief of Staff to the Group Chief Executive Officer, Ecobank.
According to the bank, the Tier 2 issuance is the first to have a Basel III-compliant 10NCS structure outside of South Africa in 144A/RegS format and will be listed on the main market of the London Stock Exchange. The bond, which matures in June 2031, has a call option in June 2026 and was issued with a coupon of 8.75 percent with interest payable semi-annually in arrears.
The lender said an equivalent amount of the net proceeds from the notes will be used by ETI to finance or re-finance, new or existing eligible assets as described in ETI’s Sustainable Finance Framework, available at https://ecobank.com/group/sustainability-financeframework on which DNV has issued a Second Party Opinion.
Speaking on the issuance, Ade Ayeyemi, Group Chief Executive Officer of ETI, stated: “This is a landmark issue for Ecobank, and indeed the success of this first Sustainable Tier 2 issuance is testament to our clear strategy, solid positioning across the pan-African banking space as well as our deliberate and long term focus on sustainable initiatives. We are particularly pleased with the diverse orderbook which reflects the confidence investors have in Ecobank to deliver on our commitment to sustainable financing.”
Investor interest for this Sophomore Eurobond issue was global, including United Kingdom, United States, Europe, the Middle East, Asia and Africa, achieving a 3.6x oversubscribed orderbook, of over US$1.3 billion at its peak.
The transaction was anchored at the start by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (“FMO”), a Dutch development bank, with a committed US$50 million order. The notes saw significant demand from asset managers from Europe on opening (including the UK) demonstrated by a number of large tickets.
Overall, investor interest was global including accounts from the United States, the Middle East, Africa and Asia.
CBN Debunks Report on Planned Nationalisation of Unity Bank
The Central Bank of Nigeria (CBN) has denied planning to nationalise Unity Bank Plc as alleged by an online news medium.
Reacting to the report, the Acting Director, Corporate Communications Department, CBN, Osita Nwanisobi, described it as, “fake news” and should be discarded in its entirety.
He said: “The report is fake news. There is no iota of truth in it.” He added that the public should disregard such news.
The report had claimed that the apex bank’s target examination of Unity Bank showed that the Tier 2 lender is in ”grave financial condition”, with Capital Adequacy Ratio (CAR) and Non- Performing Loans (NPL) ratio that breached prudential standards.
However, analysts note that just last month, the CBN’s Monetary Policy Committee ( MPC) noted in the communiqué it issued at the end of its meeting that the banking industry is in good health.
According to the communique: “the Capital Adequacy Ratio (CAR) and the Liquidity Ratio (LR) both remained above their prudential limits at 15.8 and 38.9 per cent, respectively. The Non-Performing Loans (NPLs) at 5.89 per cent in April 2021, showed progressive improvement compared with 6.6 per cent in April 2020.”
Unity Bank’s audited FY’ 2020 results showed improved performance in key parameters. For instance, the Bank’s gross loans portfolio increased by 92.9 per cent to N206.2 billion in 2020 from N106.9 billion in 2019.
The bank’s total assets rose by 67.90 per cent when compared with N293.05 billion achieved in the comparative period of 2019. Also, the lender posted gross earnings of N42.71 billion compared with N44.59 billion recorded in the comparative period of 2019, reflective of its business and economic realities of the time.
Its customer deposit portfolio grew by 34.4 per cent to N356.62 billion in 2020, up from N257.69 billion posted in the corresponding period of 2019. Profit after tax stood at N2.09 billion, while profit before tax was N2.22 billion during the year under review amidst the tough macroeconomic environment where it operated. Its net operating income rose to N25.46 billion from N23.21 billion in the corresponding period of 2019, representing a 9.71 per cent increase.
This is even as the net interest income recorded a significant jump, as it rose by 7.60 per cent to N17.75 billion from N16.49 billion in the corresponding period of 2019.
Furthermore, the bank sustained the growth momentum demonstrated in its 2020 full year earnings as it recorded an impressive performance of 43 per cent in both profit before and after tax in Q1 2021.
The Bank’s unaudited Q1 results show that the retail lender profit before tax (PBT) grew by 43 per cent to N784.3million from N550.1 million recorded in the corresponding period of 2020.
The profit after tax (PAT) for the period, which also grew by 43 per cent stood at N721.5million compared to the N506.1million recorded in Q1 2020.
As an outcome of increased focus on supporting local enterprises and industry, the asset portfolio also showed significant growth in loan book of 76 per cent as net loans and advances to customers increased to N223.2 billion, from N126.6 billion recorded in the corresponding period.
The total assets of the bank for the period showed an appreciable growth of 42 per cent to close at N521.5 billion, from N366.8 billion in the corresponding period of 2020.
The balance sheet of the bank had been considerably de-risked with the non-performing loan (NPL) ratio of near-zero per cent, which it has consistently maintained over time. With this, the bank ranks topmost in risk management assessment.
The bank recorded gross earnings of N11.5 billion, representing a marginal decline of three per cent when compared to N11.9billion posted in the corresponding period of 2020.
The bank has assuredly intensified its recapitalization efforts by the recent updates the lender provided to the supervisory authority and significant mileage is currently being recorded as part of its corporate transformation and renewal programmes.
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