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Pharma-Deko Posts N110m Loss as Bear Run Persists

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Pharma Deko Plc
  • Pharma-Deko Posts N110m Loss as Bear Run Persists

Pharma-Deko Plc yesterday reported a loss of N110 million for the nine months ended September 30, 2015, as against a profit of N149 million in the corresponding period of 2015.

The company ended the period with a revenue of N743.97 million in 2015, showing a fall of 66 per cent from N1.13 billion in 2015. Cost of sale fell from N536 million to N393 million. The company reduced sales and distribution expenses to N136 million from N190 million. However, loss after tax stood at N110 million as against a profit of N149 million in 2015.

The company attributed the fall in revenue to non-availability of key products during the half year and the delay in the completion and overhauling of equipment and factory extension.

It said the increase in cost of sales resulted from high cost of operations and increase in exchange rate of the United States dollar.

The company said once the factory becomes operational, it will fill the gap in revenue.

Meanwhile, the bearish trend at the stock market was extended for the second day yesterday. The Nigerian Stock Exchange (NSE) All-Share Index fell by 1.95 per cent to close at 26,364.27. Similarly, market capitalisation shed N180 billion to close at N9.1 trillion.

The depreciation recorded in the share prices of Lafarge, Forte Oil, Zenith Bank, Dangote Cement and GTBank were responsible for the loss recorded in the NSE ASI. Year-to-date the ASI has depreciated by 7.95 per cent.

However, Champion Breweries Plc led the price losers with 9.4 per cent, trailed by Forte Oil Plc and UAC of Nigeria Plc with 5.0 apiece. Lafarge Cement went down by 4.9 per cent, just as Okomu Oil Palm Plc and Dangote Cement shed 4.8 per cent each.

On the positive side, Glaxosmithkline Consumer Nigeria Plc and CAP Plc led the price gainers, appreciating by 5.0 per cent apiece.

Also, sector performance was largely bearish as all indices closed lower save for the Consumer Goods index which rose 0.52 per cent on the back of gains in Guinness Nigeria (+2.9 per cent) and Nigerian Breweries Plc(+1.4 per cent). The Industrial Goods Index fell 4.5 per cent as investors took profit in Lafarge Africa (-4.9 per cent) and sold off on Dangote Cement (-4.9 per cent).

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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Oil

The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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