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.”
Deposit Money Banks Start Debiting Debtors’ Other Bank Accounts
Banks Start Debiting Debtors’ Other Bank Accounts
Deposit Money Banks (DMBs) has commenced the implementation of the new Central Bank of Nigeria’s Global Standing Instruction directive that allows them to recover outstanding debts from debtors’ other bank accounts domiciled with other banks.
The initiative was in a move to reduce the size of the debt in the banking sector, according to Godwin Emefiele, the Governor, Central Bank of Nigeria.
Deposit Money Banks have commenced the implementation on August 1, 2020
Experts have said the implementation would differentiate real wealthy businessmen from debtors parading themselves as wealthy businessmen.
Peter Esele, a former President, Trade Union Congress, stated that the new rule was long overdue, adding that it was better late than never.
He said, “The financial system has been abused and it is baffling that one man would be owing six banks in the same country; it can’t happen anywhere else.
“What the CBN is doing now is that it is sanitising the industry and we now actually know who are the real businessmen and the real big men.
“Some men are wealthy from running banks down because a lot of the big men are running banks down.”
He added the central bank and the deposit money banks should start giving credit score.
Joseph Ajaero, the President, United Labour Congress, said, “Banks that are lending money to people should make sure that they have adequate collateral.
“Ordinarily, banks cannot on their own go to another bank and take the money that was kept in another bank; they are independent and should operate independently.”
He said deposit money banks ran into trouble because they were lending without collateral.
Ardova Revenue Declines to N35.3bn in Q2 2020
Ardova Posts Lower Profit After Tax in Q2 2020
Ardova Plc’s revenue declined from N40.227 billion filed in the second quarter (Q2) of 2019 to N35.262 billion in the quarter ended June 30, 2020.
In the unaudited financial statements released through the Nigerian Stock Exchange on Friday, the company gross profit expanded slightly from N2.519 billion in Q2, 2019 to N2.559 billion in Q2 2020.
Ardova, formerly known as Forte Oil, reported an operating profit of N787.407 million, up from N246.495 million decline reported in the corresponding period of 2019. While finance income depreciated from N4.254 billion in the Q2 of 2019 to N42.616 million.
Accordingly, profit before income tax dipped from N3.198 billion reported in the same period of 2019 to N591.087 million.
Similarly, profit after tax plunged from N2.126 billion achieved in the corresponding period of 2019 to N514.923 million.
Earnings per share declined from N1.63 to 39 kobo in the second quarter ended June 30, 2020.
The global pandemic that disrupted crude oil market eroded profits of oil companies and weighed on their entire operations, especially during the April-June quarter when oil prices dipped to their lowest on record.
Ardova was one of the numerous oil companies affected by the disruption in global commerce and economic activities.
The company’s total asset contracted from N47.089 billion to N45.341 billion in Q2 2020. While total liabilities declined from N30.856 billion in Q2 2019 to N28.165 billion in Q2 2020.
However, total equity expanded to N17.176 billion, up from N16.163 billion in the second quarter of 2019.
UBA Denies N41bn Fraud Involving NITEL
United Bank for Africa Denies N41bn Fraud Involving NITEL
United Bank for Africa (UBA) on Thursday denied the alleged N41 billion fraud linked to Mr. Tony Elumelu, its Chairman.
In the statement signed by Bili A. Odum, Company Secretary, UBA and released by the bank through the Nigerian Stock Exchange, the lender said the allegation was misleading, untrue and malicious. It, therefore, stated that it would be disregarding the allegation in its entirety.
The statement reads “The attention of United Bank for Africa (UBA) has been drawn to false reports circulating in the media alleging that UBA and some of its principal officers have been indicted in a NGN41 Billion fraud involving NITEL in Liquidation.
“We would like to use this medium to inform the general public that the reports are untrue, misleading, malicious, libellous and should be disregarded in its entirety.”
“UBA has set in motion all appropriate legal actions to ensure that the misleading reports are retracted and the perpetrators held accountable for their actions.
“UBA is a reputable global brand and responsible corporate citizen, operating in multiple jurisdictions, and will continue to conduct its business in line with global best corporate governance practices, extant laws and regulations, as it has done in over 70 years of operations.”
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