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Conoil Grows Q1 Profit to N3.3bn

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Conoil
  • Conoil Grows Q1 Profit to N3.3bn

Indigenous petroleum marketer, Conoil Plc, has reported a gross profit of N3.318bn for the first quarter of 2017, representing 67.66 per cent earnings rise compared to N1.979bn posted in the first quarter of 2016.

The improved financial performance for the first quarter ended March 31, 2017, showed a revenue of N24.474bn, which is an increase of 28 per cent over the N19.042bn recorded in the corresponding period of 2016.

Its profit after tax stood at N174.458m in 2017, compared with a loss of N944m in 2016, a statement by the oil major said.

Thus, it added that it was raising investors’ expectations for another bountiful harvest at the end of the year.

The frontline petroleum marketer, had last Wednesday announced a profit after tax of N2.837bn and proposed a dividend of 310 kobo per share for the 2016 financial year.

Analysts in the capital market had said the positive performance indicated bright prospects ahead for the shareholders of the company. The firm, last Wednesday, reported a revenue of N85bn, up from N82.919bn in 2015. Cost of sale reduced from N71.381bn to N70.8bn in 2016, bringing the gross profit to N14.14bn, compared with N11.53bn in 2015.

The oil firm said it reduced distribution expenses to N2.534bn, from N2.69bn after adopting a cost optimisation strategy. Its finance cost fell significantly from N3.75bn to N1.76bn.

Conoil, thus ended the year with profit before tax of N4.28bn, showing an increase of 24 per cent above the N3.44bn in 2015. Profit after tax rose by 23 per cent to N2.397bn to N2.837bn. Earnings per share also increased by 23 per cent from 333kobo in 2015 to 409kobo in 2016.

It said the improved 2016 performance resulted from its sustained culture of financial discipline, prudent and efficient execution of projects and plans, aggressive product development and marketing, supported by cutting-edge customer service delivery.

Conoil said, “Amid the challenging economic environment, our team proactively identified potential business risks and suggested quick fix solutions to optimally manage and minimise the risks, which helped in achieving efficiency in the way we do our business.”

The Chairman of Conoil Plc, Dr. Mike Adenuga had assured shareholders that in the face of the gloomy economy, the company would always strive to be one of the fastest growing and profitable companies in the country.

He assured that it will consolidate its gains and ensure greater returns on investment for its teeming shareholders.

While promising that the company’s ultimate goal to its customers will always be excellent service and products, he maintained that its promise for its shareholders remains maximum value.

Adenuga stressed, “We will drive our business to greater heights by re-establishing commanding presence in retail business, lubricants, aviation, liquefied petroleum gas, specialised products and non-fuel retail services .”

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.

Finance

Union Bank Secures US$40 Million Facility from IFC Global Trade Finance

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Union Bank Secures US$40 Million Facility from IFC Global Trade Finance

Union Bank of Nigeria Plc said it has secured a US$40,000,000 finance guarantee facility from the IFC, a member of the World Bank Group.

In a note to the Nigerian Stock Exchange, the lender said the facility would help boost access to finance for local businesses and enable increased international trade for Nigeria.

It explained that the facility “will support Union Bank to establish working partnerships with nearly 300 major international banks within the GTFP network, thereby broadening access to finance and reducing cash collateral requirements for Nigerian businesses.

“The facility will enable the continued flow of trade credit into the Nigerian market at a time when imports are critical, and the country’s exports can generate much-needed foreign exchange.

Under the IFC’s Global Trade Finance Program (GTFP) terms of the agreement, GTFP offers benefiting banks partial or full guarantees covering payment risk on Union Bank’s trade-related transactions.

Accordingly, these guarantees are transaction-specific and may vary depending on underlying instruments like letters of credit, trade-related promissory notes, guarantees, bonds, and advance payment guarantees.”

Emeka Emuwa, Chief Executive Officer of Union Bank, said, “Union Bank is pleased to join the IFC’s Global Trade Finance Program. This is a significant achievement as we continue to expand our trade financing offerings to our
customers. Even in these peculiar times, we remain focused on contributing to economic growth by developing tailored solutions that help our customers harness the teeming opportunities that still exist in the Nigerian market.

Eme Essien Lore, IFC’s Country Manager for Nigeria, said, “Keeping trade moving is essential to growth and job creation, especially during the challenging economic times we are living through today. We welcome Union Bank to IFC’s Global Trade Finance Program and value a partnership that will make a positive impact on Nigeria’s economy.

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Apapa Customs Command Generate N367.6bn in Nine Months

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Nigeria Customs Service

Customs Command Apapa Realises N367.6bn Between January and September

The Nigeria Customs Service, Apapa Command, said it generated N367.6 billion in the nine-month ended September 2020.

Mohammed Abba-Kura, the Customs Area Controller, disclosed this while speaking with newsmen in Lagos.

He said a total of 328 containers of goods worth N19.5 billion were seized during the period. This, he said represents an increase of 37 containers when compared to the same period of 2019.

Speaking further, Abba-Kura said the N367.6 billion realised in the first nine months of the year, represented a 17 percent or N54.1 billion increase from N313.5 billion it collected during the same period of 2019.

The Apapa Command generated N14.3 billion as revenue in the third quarter from customers’ duty and other charges.

He said “The difference recorded was made possible as a result of resilience of officers in ensuring that importers and agents are made to do proper declarations, adhere strictly to import/export guidelines in tandem with extant laws.”

Commenting on the seizures, Abba-Kura said, “These items were seized mainly because of various forms of infractions which range from false declarations, non-adherence to import/export guidelines and failure to comply with other extant regulations as enshrined in the Customs and Excise Management Act.

“In the area of export trade, the period under review recorded exportation of goods worth N26,273,706,822 exported from the country.”

“These exported goods include mineral resources, steel bars, agricultural products among others with a total tonnage of 378,447 million tonnes free on board value of $85.8m. Similarly, the volume of export from January to September 2020 stood at N78.6bn with FOB $257,003,965.”

He added that the compliance level rose to about 60 percent during the period, highlighting the reason for the surge in the number of seizures made.

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Nigeria’s Foreign Reserves Dip Further to $35.69 Billion

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Global debt

Nigeria’s External Reserves Decline by $50.84 Million to $35.69 Billion

Nigeria’s foreign reserves declined by $50.84 million in eleven days to $35.69 billion, according to the latest data from the Central Bank of Nigeria (CBN).

In the data released on the apex bank website, the nation’s foreign reserves stood at $35.75 billion as of October 2, 2020 but depreciated to $35.69 billion on October 13, 2020.

The foreign reserves plunged from $44.25 billion posted on August 19, 2019 to $41.85 billion as of September 30, 2019 before sustaining the downward trend to $36.30 billion on June 19, 2020 despite the Central Bank of Nigeria devaluing the Naira twice to prevent huge capital flight that trailed COVID-19 outbreak.

Weak oil prices amid low demand for the commodity compounded Nigeria’s woes as the central bank continues to struggle to sustain foreign exchange intervention and ease dollar scarcity in a nation that depends on imports for most of its consumption.

However, the plunge in revenue generation alongside low foreign direct investment due to the weak economic outlook and low investment sentiment, negatively impacted the attractiveness of Nigerian assets.

The apex bank, in its monthly report released for May, said “Nigeria’s international reserves decreased marginally from $36.43bn at end-April to $36.19bn at end-May 2020.

“The net decrease in reserves was due to the sales of foreign exchange at the Secondary Market Intervention Sales and Investor and Exporter windows as well as payments to external creditors.

“Thus, the level of import cover for goods and services, decreased from 4.0 months in April to 3.9 months in May 2020, but remained above the IMF threshold of 3.0 months.

“A comparative analysis of reserves per capita in May 2020 showed that Nigeria’s reserves per capita was $176.58, compared to $889.73 for South Africa, $491.10 for Angola, $218.94 for Egypt and $24.10 for Ghana.

It explained that “Sequel to the COVID-19 pandemic, the viability of the external sector in 2020 is expected to deteriorate, given the present worsening current account balance and depletion of external reserves driven, largely, by decelerating export receipts, particularly oil.

“Specifically, the degree of external reserves accumulation is expected to decelerate, as outflows are expected to outweigh inflows.

“As a result, external reserves are expected to lie between $29.9bn and $34.3bn at end-December 2020 (predicated on current declining oil price between $20 and $40).”

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