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Total Nigeria’s Profit After Tax Drops by 46% to N8.019bn

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  • Total Nigeria’s Profit After Tax Drops by 46% to N8.019bn

Total Nigeria Plc yesterday reported its audited results, showing a 42 per cent drop in profit before tax from N20.353 billion to N11.795 billion, while profit after tax depreciated by 46 per cent from N14.794 billion to N8.019 billion.

The results also showed that the oil firm recorded a turnover of N288.1 billion, down from N291 billion in 2016. Cost of sale rose from N241.9 billion to N258.8 billion. Gross profit fell from N49.1billion to N29.3 billion. Finance cost jumped from N852 million to N3.1 billion.

Despite the decline in profits, the company has recommended a final dividend of N14.00 per share for the year ended December 31, 2017, bringing the total dividend for the year to N17.00, having paid an interim dividend of N3.00 last year.

The Chairman of Total Nigeria Plc had last year restated the firm’s commitment to growing its business in Nigeria in particular and Africa at large.

The Chairman of Total Nigeria Mr. Stanislas Mittelman, who disclosed this at the 2016 annual general meeting (AGM) in Lagos, assured that the company would continue to invest in the Nigeria and African business to grow its market share and boost profitability.

“Some international competitors made strong choices years ago to withdraw from Nigeria for most of them to raise loan from Africa. As far as Total is concerned, we made an opposite strategy, we keep investing in Africa. Today Africa is, of course with France, a core of our business especially the downstream business. Our ambition is not to withdraw or divest but to grow with all our strength.

Mittelman disclosed that the company was developing its solar business with ambition to cover all the different parts of solar business.

He informed the shareholders that the company would continue to invest in its lubricant facilities as well as improve the depots and logistics. Although he said 2017 would be a challenging year, he assured them the company would continue to grow in all indices for enhanced shareholders’ value and improve its customer service delivery.

Meanwhile, the equity market closed on a bearish note as the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.66 per cent to close at 42,299.56.

The fall resulted from a renewed sell pressure amidst weakening investors’ sentiment.

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

More Retirees Quit Pension Scheme, Collects N28.46 Billion

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Pensioners

114,837 Retirees Quit Pension Scheme, Collects N28.46 Billion

Thousands of retirees whose employers did not adequately fund their Retirement Savings Accounts and retired with balances below N550,000 have collected their contributions and quit the Contributory Pension Scheme (CPS).

A total of 114,837 employees who retired after attaining the age of 50 and had less than N550,000 in their CPS account had collected their contributions and left the scheme as of the end of June 2020.

This includes contributors from the state, federal and private sectors.

In the quarterly report released on Friday by the PenCom, these retirees withdrew a total sum of N28.46 billion since the inception of the scheme till June.

The report showed about 6,561 of the total retirees that left the program were from the Federal Government sector while 3,879 and 104,397 were from the state and private sectors, respectively.

The report also showed that some of those who collected their contributions included foreign nationals who retired and returned to their countries of origin.

A further breakdown showed as of the end of third quarter of 2019, a total of 109,284 retirees with similar low balances withdrew N27.09 billion. While by the final quarter of 2019, 2,241 retirees withdrew about N569.27 million.

In the first quarter and second quarter of 2020, about 2,227 and 1,085 retirees withdrawn N531.95 million and N274.09 million, respectively. Bringing the total from inception to N28.46 billion.

PenCom stated in its Q2 report on en-bloc payments that, “The commission granted approval for the payment of the entire RSA balances of the categories of retirees whose RSA balances were N550,000 or below and considered insufficient to procure a programmed withdrawal or annuity of a reasonable amount over an expected life span.

“Approval was also granted for payment of RSA balances to foreign nationals who decided to return to their home countries after making contributions under the CPS.

“Accordingly, the sum of N274.78m was paid to 1,085 retirees, which comprised 140 from the public sector retirees (FGN and state) and 1,085 from the private sector retirees during the second quarter.

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Central Bank to Promote Zero Balance Account Opening to Drive Financial Inclusion

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Central Bank

Banks Now Accept Zero Balance Account Opening to Deepen Financial Inclusion

In an effort to boost financial inclusion in the country, the Central Bank of Nigeria has said it would start promoting zero balance account opening to encourage and lure the unbanked into the banking system.

The apex bank disclosed this in its report titled ‘Monetary, credit, foreign trade and exchange policy guidelines for fiscal years 2020/2021’.

The report read in part, “As part of its effort towards promoting greater financial inclusion in the country, the bank shall continue to encourage banks to intensify deposit mobilisation during the 2020/2021 fiscal years.

“Accordingly, banks shall allow zero balances for opening new bank accounts and simplify their account opening processes, while adhering to Know-Your-Customer requirements.

“Banks are also encouraged to develop new products that would provide greater access to credit.”

The apex bank said the Shared Agency Network Expansion Facility, launched to deepen provision of financial services in under-served and unserved locations and drive financial inclusion through agent banking, would continue in the 2020/2021 fiscal years.

Banks, mobile money operators and super-agents would also continue to render returns in the prescribed formats and frequency to the CBN.

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Finance

Investors Oversubscribed for FGN Bonds by N205.87 Billion in October

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bonds

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.

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