- Shell Nigeria Output Hits Five-Year High
Global oil Giant, Royal Dutch Shell, on Thursday announced that its total oil production in Nigeria grew to a five-year high in 2019 at 176,000 barrels of oil equivalent per day.
In the company’s fourth quarter report released on Thursday, Shell’s profit declined by 23 percent from $21.4 billion recorded in 2018 to $16.5 billion in 2019, largely due to unstable global oil prices.
The company’s profit had rose by 36 percent from $16.18 billion in 2017 to $21.4 billion in 2018 when OPEC+ were able to curtail falling oil prices through production cap.
Shell’s total production in the country stood at 161,000 boepd as at 2018, up from 159,000 boepd in 2017. However, the company’s liquid production available in Nigeria increased from 47,000 barrels per dayd in 2017 and 51,000 bpd in 2018 to 65,000 barrels per day in 2019.
Gas production available for sale in Nigeria rose to 642 million standard cubic feet per day from 632 million scfpd in 2018 and 647 million scfpd in 2017.
Shell reported a drop in profit from $5.7 billon announced in the final quarter of 2018 to $2.9 billion in the final quarter of 2019.
Lower oil prices, decommissioning costs and write-offs related to its business in Albania plunged the company’s revenue from exploration and production by $787 million when compared with a profit of $1.6 billion generated the same quarter ago.
Ben van Beurden, the Company’s Chief Executive Officer, said Shell faced “challenging macroeconomic conditions” in its petroleum refining and chemicals business, “as well as lower oil and gas prices” last year.
Flour Mills of Nigeria Repays N51.64 Billion Series 2 Commercial Paper
Flour Mills of Nigeria Plc (FMN) has successfully repaid its N51.64 billion Series 2 Commercial Paper as revealed in a statement issued by the company.
This follows the earlier repayment of its N13.33 billion Series 1 Commercial Paper in August 2023.
Both the Series 1 and Series 2 Commercial Papers, totaling N64.97 billion, were initially issued on February 22, 2023, under FMN’s N200 billion Commercial Paper Programme.
The Series 1, with a yield of 13.0%, raised N13.3 billion, while the Series 2, with a yield of 14.0%, raised N51.64 billion.
FMN had launched its N200 billion Commercial Paper Programme on February 10, 2023, reflecting the company’s strategic financial planning.
The Group Chief Finance Officer, Mr. Anders Kristiansson, expressed satisfaction with the timely and successful repayment of the Series 2 Commercial Paper.
He emphasized FMN’s commitment to financial prudence and acknowledged the confidence placed in the organization by the investing public.
Kristiansson expressed gratitude to stakeholders for their continuous support, reiterating FMN’s dedication to delivering sustainable value and upholding the highest standards of corporate governance.
In addition to the successful repayment, FMN tapped into the market for its Series 3 Commercial Paper in June 2023, with subscriptions from banks and Pension Fund Administrators, contributing 39.7% and 40.8%, respectively.
The transaction was managed by FBNQuest Merchant Bank Limited as the Lead Arranger, with ChapelHill Denham Advisory Limited, FCMB Capital Limited, and United Capital PLC serving as Joint Arrangers.
African Airlines Projected to Cut Losses to $400m in 2024, Says IATA
The International Air Transport Association (IATA) has forecasted a reduction in losses for Nigerian and other African airlines from $500 million in 2023 to $400 million in 2024.
The Switzerland-based IATA made this projection while presenting the global airline industry outlook in Geneva, Switzerland, on Wednesday.
IATA’s Director-General, Willie Walsh, shared the outlook, stating that global airlines are expected to generate approximately $964 billion in revenue in the coming year.
The report indicated that airline industry net profits are anticipated to reach $25.7 billion in 2024, reflecting a slight improvement over the projected $23.3 billion net profit for 2023.
Despite the challenges faced by the aviation industry in recent years, IATA sees the $25.7 billion net profit in 2024 as a testament to aviation’s resilience.
Walsh acknowledged the impressive speed of recovery but emphasized that the net profit margin of 2.7% remains below industry expectations.
IATA estimates that around 4.7 billion people will travel in 2024, surpassing the pre-pandemic level of 4.5 billion recorded in 2019.
However, Walsh highlighted ongoing challenges, including regulatory burdens, fragmentation, high infrastructure costs, and a supply chain populated with uncertainties.
He emphasized the need for the industry to build a resilient future, given its significant contribution to global GDP and livelihoods.
Fuel prices are expected to average $113.8 per barrel in 2024, accounting for 31% of all operating costs, totaling $281 billion.
Walsh concluded by expressing optimism about more normal growth patterns for both passenger and cargo in the post-pandemic era.
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