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Med-View Airline Considers Diversifying to Boost Earnings

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  • Med-View Airline Considers Diversifying to Boost Earnings

Med-View Airline, an airline company based in Lagos, has announced a possible diversification move to broaden revenue-generation and explore other options aside from the current focus.

The airline currently generates most of its revenue from air passenger, however, the management is considering diversification to up revenue generation, deepen the airline growth and deliver strong returns to shareholders.

Alhaji Muneer Bankole, CEO Med-View Airline, who disclosed this at the Company’s third Annual General Meeting (AGM) held in Lagos on Thursday, said the diversification program being considered requires a broad development of infrastructure to make Med-View Airline a Maintenance and Repair Organisation (MRO) and Aviation Training Organization (ATO).

He said: “The infrastructural development of Med-View’s (MRO) and ATO are aimed at addressing over-dependence on air passenger traffic to raise inflow. It will also generate more foreign currency, foreign direct investment (FDI) and restoration of fiscal sustainability. The company is in the final stage of embarking on the project in partnership with Chinese Construction Company (CCEC), who has submitted drawing plans and quotation to build the structure. This is done in order to foster continuous growth. The challenges associated with these anticipated projects will be significant but we remain optimistic on the sustainable growth in the company’s economic activity despite the current challenges.”

He also explained why the company recorded low profit in the last financial year. According to him, this was as a result of the reduction in the company’s fleet due to the C-Check in Med-view which in-turn affected the revenue company’s revenue.

“The lack of support and trust which banks in Nigeria have towards aviation business did not help matters as none of the banks take risks but were not willing to take up this in particular,” he said.

Nevertheless, the CEO assured the stakeholders that the management will continually strive to achieve the best for the company, stressing that ”Med-View is firmly on the path to improved performance, sustained growth, profitability and adequate returns to all stakeholders with the shortest possible period of time.”

 

Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

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Gold

Gold Gained Ahead of Joe Biden Inauguration 2021

Gold price rose from one and a half month low on Tuesday ahead of President-elect Joe Biden’s inauguration on Wednesday.

The precious metal, largely regarded as a haven asset by investors, edged up by 0.2 percent to $1,844.52 per ounce on Tuesday, up from $1,802.61 on Monday.

According to Michael McCarthy, the Chief Market Strategies, CMC Markets, the surged in gold price is a result of the projected drop in dollar value or uncertainty.

He said, “The key factor appears to be the (U.S.) currency.”

As expected, a change in administration comes with the change in economic policies, especially taking into consideration the peculiarities of the present situation. In fact, even though Biden, Janet Yellen and the rest of the new cabinet are expected to go all out on additional stimulus with the support of Democrats controlled Houses, economic uncertainties with rising COVID-19 cases and slow vaccine distribution remained a huge concern.

Also, the effectiveness of the vaccines can not be ascertained until wider rollout.

Still, which policy would be halted or sustained by the incoming administration remained a concern that has forced many investors to once again flee other assets for Gold ahead of tomorrow’s inauguration.

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Crude Oil

Crude Oil Holds Steady Above $55 Per Barrel on Tuesday

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Crude Oil Holds Steady Above $55 Per Barrel on Tuesday

Brent Crude oil, against which Nigerian crude oil is priced, rose from $54.46 per barrel on Monday to $55.27 per barrel as of 9:03 am Nigerian time on Tuesday.

Last week, Brent crude oil rose to 11 months high of $57.38 per barrel before pulling back on rising COVID-19 cases and lockdowns in key global economies like the United Kingdom, Euro-Area, China, etc.

While OPEC has left 2021 oil demand unchanged and President-elect Joe Biden has announced a $1.9 trillion stimulus package, experts are saying the rising number of new cases of COVID-19 amid poor vaccine distribution could drag on growth and demand for oil in 2021.

On Friday, Dan Yergin, vice-chairman at IHS Markit, said in addition to the stimulus package “There are two other things that are going with it … one is of course, vaccinations — in the sense that eventually this crisis is going to end, and maybe by the spring, lockdowns will be over.”

“The other thing is what Saudi Arabia did. This is the third time Saudi Arabia has made a sudden change in policy in less than a year, and this one was to announce (the) 1 million barrel a day cut — partly because they are worried about the impact of the surge in virus that’s occurring,” he said.

Also, the stimulus being injected into the United States economy could spur huge Shale production and disrupt OPEC and allies’ efforts at balancing the global oil market in 2021.

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Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

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Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

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