11 Plc Post 40% Decline in Profit in Q2 2020

11 Plc, formerly known as Mobil Oil, reported a 13 percent decline in revenue from N92.805 billion filed in the second quarter of 2019 to N80.539 billion in the same quarter of 2020.

The company’s profit before tax depreciated by 39 percent from N6.186 billion achieved in Q2 2019 to N3.753 billion in Q2 2020.

This decline continues despite the tax paid during the period reducing by 39 percent to N1.235 billion.

Profit after tax plunged by 40 percent from N4.173 billion in the corresponding quarter of 2019 to N2.518 billion in Q2 2020.

Accordingly, earnings per 50k share (kobo) depreciated by 40 percent, while total assets expanded by 16 percent from N81.399 billion in the second quarter of 2019 to N94.261 billion in Q2 2020.

However, capital expenditure during the period grew by 444 percent from N2.115 billion in Q2 2019 to N11.512 billion in Q2 2020.

Commenting on the performance, the company said “the COVID-19 crisis continues to impact all businesses, with the effect expected to be more pronounced in the future. The priority for us is to protect the health, safety and welfare of all stakeholders under our duty of care as well as support the Government and its agencies as they work to reduce the impact of the outbreak.

“At this stage, it is not possible to determine the financial impact of COVID-19 on our Company given the lack of visibility on the end date of the pandemic or on how long it would continue to impact the Nigerian economy. The Company has a strong Balance Sheet and the Board and Management are focusing on efforts to mitigate the impact on our business.”