- Forte Oil’s Outlook Stable, Say Rating Agencies
Foremost ratings and research agencies, Agusto & Co and Global Credit Rating Co, have affirmed Forte Oil Plc’s investment grade rating.
In addition, both agencies stated that the long-term outlook for the oil and gas company remained stable.
A statement on Sunday said that the credit ratings were accorded Forte Oil Plc based on the its top-tier position in the Nigerian downstream sector, underpinned by a strong and visible brand, significant assets across the energy value chain, and stable management team.
The Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa said, “This is an affirmation of trust in the company. It further reinstates that the company is on a solid financial footing and is navigating the difficult business environment within the country today through prudent management and presence in strategic parts of the energy value chain.
“This rating provides additional comfort to all stakeholders that their investment in Forte Oil is safe and secure in line with our vision of being the investment of choice in the energy sector.”
The statement recalled that Forte Oil had reported improved results for the first quarter ended March 31, 2017.
It also reported profit after tax of N1.9bn in the Q1 of 2017, showing a jump of 98 per cent from N1bn recorded in the corresponding period of 2016.
In all, Forte Oil had recorded a revenue of N33 billion, down 7.3 per cent from N35.67bn; its cost of sales was reduced by 11.7 per cent from N30.8bn to N27.2bn, while distribution expenses were reduced by 45 per cent from N911m to N501m, leading to a growth of 20.8 per cent in gross profit to N5.8bn, from N4.8bn in 2015, it added.
It also stated that Forte Oil Plc last year raised N9bn bond under its N50bn bond issuance programme in bid to reduce its finance cost and refinance existing short-term commercial bank loan obligations. The funds were also meant to refinance its retail outlet expansion.
Investors Oversubscribed for FGN Bonds by N205.87 Billion in October
FG October Bonds Oversubscribed by N205.87 Billion
The Debt Management Office (DMO) has said investors oversubscribed for the Federal Government’s October bonds by N205.87 billion.
The DMO stated this after concluding the monthly FGN bonds auction on Wednesday.
Two instruments of 12.5 per cent FGN March 2035 re-opening 15-year bond and 9.8 per cent FGN July 2045 re-opening 25-year bond were auctioned.
The two bonds of N15bn each with a total auction figure of N30bn received a subscription of N235.87bn.
The 15-year tenor and 25-year tenor bonds received 99 and 67 bids but recorded 21 and 26 successful bids respectively.
The amounts allotted for each of the bids were N20bn and N25bn respectively.
According to the DMO, successful bids for the 15-year tenor bond and 25-year tenor bonds were allotted at the marginal rates of 4.97 per cent and six per cent respectively.
However, it added, the original coupon rates of 12.5 per cent for the 12.5 per cent FGN March 2035 bond and the 9.8 per cent for the 9.8 per cent FGN July 2045 bonds would be maintained.
Lafarge Africa Sustains Growth in Third Quarter, Reports N53.3bn Revenue
Lafarge Africa Grows Revenue by 31.4 Percent to N53.3bn Revenue in Q3 2020
Lafarge Africa Plc, a cement manufacturer headquartered in Lagos, sustained its strong growth in the third quarter (Q3) ended September 30, 2020.
In the company’s financial results released on the Nigerian Stock Exchange on Friday, the cement manufacturer’s revenue rose by 31.4 percent from N45.172 billion posted in the third quarter of 2019 to N59.337 billion in the third quarter of 2020.
Similarly, operating profit grew by 7.2 percent from N7.746 billion in the corresponding quarter to N8.302 billion in the quarter under review. This strong performance continues across the board as net income expanded by 2.8 percent to N4.867 billion, up from N4.734 billion posted in the third quarter of 2019.
Lafarge earnings per share rose by 2.8 percent to 30 kobo in the third quarter, again up from the 29 kobo posted in the same period of 2019.
On the outlook for the company going forward, the company said:
Market demand is expected to remain strong in Q4.
Naira devaluation and inflation remain a concern in Q4.
The implementation of our “HEALTH, COST & CASH” initiatives would continue to deliver
improvement in our performance.
We will maintain a healthy balance sheet.
Speaking on the company’s performance, Khaled El Dokani, CEO, Lafarge Africa Plc, said “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH” initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.”
Despite COVID-19 Pension Assets Hit N11.4 Trillion
Total Pension Assets Expand to N11.35 Trillion
The National Pension Commission has revealed that the total pension assets rose to N11.35 trillion as of the end of August 2020 despite the COVID-19 pandemic that disrupted businesses and economic productivity.
According to the latest figures from the National Pension Commission, the commission assets expanded from N11.08 trillion in June 2020 to N11.3 trillion in July.
The report noted that 66.27 percent or N7.51 trillion of the funds had been invested in the Federal Government’s securities.
While some of the funds were also invested in domestic and foreign ordinary shares, corporate debt securities, local money market securities and mutual funds.
In the commission’s second quarter (Q2 2020) report, it said that following “the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by recovery agents, 16 of the affected employers remitted N261.33 million during the period.
“PenCom said this represents a principal contribution of N152.79 million and penalty of N108.54 million during Q2 2020.”
In the commission’s Q2 2020 report, it said “the pension fund administrators (PFAs) 2,839 contributors under the micro pension plan, remitted a total of N7.4 million to the RSAs as pension contributions.”
Also in the same quarter, it said the PFAs recaptured 56,990 RSA holders and uploaded their data to the enhanced contributory registration system (ECRS).
PenCom further said the growth in the industry’s membership was driven by the RSA scheme, which had an increase of 41,147 contributors, representing 0.46 percent.
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