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NERC: Togo, Others Owe Nigeria N37bn for Electricity



Power - Investors King
  • NERC: Togo, Others Owe Nigeria N37bn for Electricity

Three of Nigeria’s international customers who were supplied up to 300 megawatts (MW) of electricity in 2018, are still indebted to the country, a quarterly report from the Nigerian Electricity Regulatory Commission (NERC) has disclosed.

The countries – Togo, Benin and Niger Republics, are represented in the trans-border power trade with Nigeria by two firms – Société Nigérienne d’Electricité, Nigerien Electricity Society (NIGELEC) which is the government firm responsible for electric power generation and transmission in Niger, and Communauté Électrique du Bénin (CEB Sakete) which services both Togo and Benin Republic.

According to the NERC report obtained, the three countries as at September 2018, had not paid any money for electricity sent to them. Cumulatively, their debt to Nigeria’s power market for the first three quarters of 2018 was N37.045 billion ($121.062 million).

The report noted that from January to September, NIGELEC owed N10.086 billion, while CEB Sakete owed N26.959 billion. Both international customers reportedly did not make any attempt to pay for electricity sold to them.

The development followed a recent claim by electricity generation companies (Gencos) in Nigeria the federal government was taking power from them and selling to countries in the West African region under the West African Power Pool (WAPP) on non- commercial but diplomatic terms.

The Gencos had stated that the agreement on the daily export of about 300MW of electricity to African countries did not take into account the commercial framework in Nigeria’s electricity market such as the Multi Year Tariff Order (MYTO) upon which they also produce power, and had insisted that the deal was shrouded in opacity as they often do not know the monetary benefit accruing to them from such sales.

However, in the NERC report, NIGELEC accumulated electricity bills of N0.778 billion; N0.925 billion; N1.190 billion; N1.181 billion; N1.202 billion; N1.181 billion; N1.190 billion; N1.206 billion; and N1.233 billion between January and September, while CEB Sakete raked in N2.33 billion; N2.525 billion; N2.852 billion; N2.775 billion; N3.381 billion; N3.103 billion; N2.635 billion and N2.742 billion in electricity bills to Nigeria within the period.

Meanwhile, the NERC also reported that service complaints received by the 11 electricity distribution companies (Discos) in the country in the third quarter of 2018 were 128,791 against 153,227 received in the second quarter of 2018.
It noted that while the number of complaints decreased within the period under consideration, the proportion of the number of complaints resolved by Discos also improved to 75.6 per cent from the 61.2 per cent recorded in the second quarter of 2018.

According to the regulator, Benin Disco had the highest number of complaints followed by Ikeja Disco, while Yola Disco recorded the lowest customer complaints.
In terms of complaint resolution, Eko Disco had the highest resolution rate of 98.9 per cent followed by Yola Disco which recorded a resolution rate of 97.9 per cent; and Jos – 90.1 per cent. It added that the development reflected better performance in dealing with customer complaints.

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

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Company News

BUA Cement Announces 24.6 Percent Increase in Profit to N43.4 Billion in H1 2021



BUA Cement stock - Investors King

BUA Cement Plc, Nigeria’s second-largest cement manufacturing company, on Thursday reported a 22.7 percent increase in revenue in the six months ended June 30, 2021.

Revenue rose from N101.261 billion recorded in the first half (H1) of 2020 to N124.278 billion in the first half of 2021.

The company disclosed in its unaudited financial statements release through the Nigerian Exchange Limited and seen by Investors King.

As expected, the cost of sales inched higher by 19.1 percent from N55.539 billion in H1 2020 to N66.158 billion in H1 2021. While gross profit expanded by 27.1 percent to N58.120 billion in H1, up from N45.723 billion.

The cement manufacturing company grew other income by 52.3 percent from N47.653 billion filed in H1 2020 to N72.6 billion in H1 2021.

Administrative expenses rose to N4.17 billion in the period under review, representing an increase of 57.9 percent when compared to N2.643 billion recorded in H1 2020.

Operating profit increased by 23.8 percent from N40.809 billion in the corresponding period of 2020 to N50.524 billion in the period under review.

Profit before income taxes rose by 26.9 percent to N49.700 billion in H1 2021 from N39.165 billion in H1 2020.

The company paid N6.3 billion in income tax in the first half of 2021.

Therefore, profit after tax stood at N43.396 billion in the first six months of 2021, an increase of 24.6 percent when compared to N34.819 billion achieved in the same period of 2020.

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Seplat Energy Appoints Dr. Emma FitzGerald as an Independent Non-Executive Director



Seplat Energy Plc - Investors King

Seplat Energy Plc has appointed Dr. Emma FitzGerald as an Independent Non-Executive Director of the Company, the company disclosed on Thursday.

Dr. FitzGerald will replace Lord Mark Malloch-Brown who retired from the Board of the Company on 1st August 2021.

Dr. Emma FitzGerald Profile

Dr. FitzGerald is a seasoned executive in Energy & Water, with hands-on experience in transformation through her many years of working at Shell, ranging from building its lubricants business in China to running its Global Retail network.

From 2007-2010, she was accountable for Shell’s Downstream strategy and played a key role in reshaping Shell’s renewables strategy including the creation of Raizen, a game changing biofuels JV with Cosan. From 2013 to 2018 she ran gas distribution and water & waste networks for National Grid and Severn Trent where she successfully
positioned them as sustainability thought leaders in their Industries.

Most recently Dr. FitzGerald served as CEO of Puma Energy International, a global energy company owned by Trafigura and Sonangol, which is focused on high potential developing markets in Africa, Asia and Central America. In 2020 she set up Puma’s Future Energies division to play a critical role in helping customers and communities find the right energy solutions to support the energy transition. Over the last 10 years she has served on various Boards in executive and non-executive capacities and currently sits on the board of UPM Kymmene, an international paper & biomaterials business focused on innovating for a future beyond fossil fuels.

Commenting on the appointment, Dr. A. B. C. Orjiako, Chairman of SEPLAT Energy said: “The Board of SEPLAT Energy is indeed delighted to have Dr. Emma Fitzgerald on board as she brings vast knowledge in important areas such as the energy sector, renewables and sustainability. SEPLAT Energy has a great future ahead and looks forward to the enormous contribution she will make towards its continuing global success.”

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Company News

Robinhood IPO Priced at Lower End of Range, Firm Valued at $32B



Robinhood-Investors King

Stock and crypto-trading app Robinhood has secured a $32 billion valuation via its initial public offering (IPO) and is set to debut on the Nasdaq exchange on Thursday.

According to a press release on Wednesday, Robinhood has priced its offering at $38 per Class A common stock share.

The pricing is at the lower end of the $38-$42 per share price range the company had targeted and had planned on selling 5.5 million shares targeting a $1.89 billion raise.

Net proceeds from the sale will go toward working capital, capital expenditures, funding tax obligations, hiring efforts, customer support services, among others.

Shares will be listed on the Nasdaq Global Select Market on Thursday, according to the release.

Earlier this month, Robinhood began unconventionally offering a portion of its IPO to users via its app — a view some consider to be a risky gamble.

Known for its zero-fee trading structure, the company has continued to endure hits to its image as well as legal and political ramifications stemming from the fallout of the GameStop saga and limitations to users trading crypto.

The company is trying to reshape that image and is reportedly working on a new feature that will help protect users from crypto price volatility while hiring a former Google alumn to improve its overall product design.

“Robinhood intends to use the net proceeds for working capital, capital expenditures, funding its anticipated tax obligations related to the settlement of RSUs, and general corporate purposes including increasing its hiring efforts to expand its employee base, expanding its customer support operations and satisfying its general capital needs,” the firm said in the announcement.

Robinhood filed the public offering prospectus on July 1, noting at the time that 17 percent of its total revenue in Q1 came from crypto trading transaction fees, which represented a big jump from the 4 percent in Q4 2020.

“While we currently support a portfolio of seven cryptocurrencies for trading, for the three months ended March 31, 2021, 34 percent of our cryptocurrency transaction-based revenue was attributable to transactions in Dogecoin, as compared to 4 percent for the three months ended December 31, 2020,” the firm said in the initial filing.

Still, the company’s CEO Vlad Tenev is staring down allegations from the Financial Industry Regulatory Authority over his failure to register Robinhood Financial relating to compliance issues.

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