Connect with us
nairametrics
UBA ads

Business News

Global Spectrum Energy Services Limited lists on the Nigerian Stock Exchange

Published

on

Oscar Onyema, C.E.O, Listing, Nigeria Stock Exchange

Global Spectrum Energy Services Limited yesterday listed 800 million ordinary shares at N5 by introduction on the Nigerian Stock Exchange (NSE). Stockbrokers/Lead Financial Advisers to the offer were Compass Investment Securities Ltd/Goldbanc Managment Associates Limited.

The company also used the opportunity to hold a facts behind the figures investor presentation for the investing public after the listing ceremony. Management of the firm was led by its Chairman Engineer Godwin Omene, while the Chief Executive Officer of the Exchange Oscar Onyema was present.  Here are a few highlights from the facts behind the figures presentation.

UBA ADS

What does the company do ?

The company’s activities are divided into the provision of Complimentary Offshore Support Vessel Services, Maritime Security, Logistics, and Engineering Services.

Future plans

GTBank 728 x 90

The company plans to spend a total of $200 million on its expansion projects with a pipe mill expected to gulp a total of $150 million on a line pipe manufacturing plant. A feasibility study for the plant was paid for by Shell international and Nigeria currently has no such plant.  In addition, the firm plans to spend $15 million on tank farm for which it has acquired land in rumuolumeni, Port Harcourt. A lubricant blending plant will also be constructed at the same location.

Returns for shareholders

Managing Director of the firm, Colm Doyle during the presentation stated that shareholders will be rewarded with 30% of Profit After Tax as dividends.

Deal book 300 x 250

GlobaL Spectrum Energy Service Shares closed at N5.51 in today’s trading session on the NSE.

 

app

 

Patricia

 

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business News

Nigeria’s foreign reserves hit $36.57 billion; Emefiele keeps his word on defending the naira

Nigeria’s foreign exchange reserves now stand at $36.57 billion, having increased sharply from $33.42 billion as of April 29, 2020.

Published

on

IMF, COVID-19, CBN OMO ban could give stocks a much-needed boost , CBN’s N132.56 billion T-bills auction records oversubscription by 327% , Nigeria pays $1.09 billion to service external debt in 9 months , Implications of the new CBN stance on treasury bill sale to individuals, Digital technology and blockchain altering conventional banking models - Emefiele  , Increasing food prices might erase chances of CBN cutting interest rate   , Customer complaint against excess/unauthorized charges hits 1, 612 - CBN , CBN moves to reduce cassava derivatives import worth $600 million  , Invest in infrastructural development - CBN Governor admonishes investors , Credit to government declines, as Credit to private sector hits N25.8 trillion, CBN sets N10 billion minimum capital for Mortgage firms, CBN sets N10 billion minimum capital for Mortgage firms , Why you should be worried about the latest drop in external reserves, CBN, Alert: CBN issues N847.4 billion treasury bills for Q1 2020 , PMI: Nigeria’s manufacturing sector gains momentum in November, CBN warns high foreign credits could collapse Nigeria’s economy, predicts high poverty, MPC Member, BVN, Fitch, Foreign excchange (Forex), Overnight rates crash after CBN’s N1.4 trillion deduction, Nigeria’s foreign reserves hit $36.57 billion; Emefiele keeps his word on defending the naira

The macro fundamentals surrounding Nigeria’s major export, including the recent jump in crude oil prices to about $40, seem to have helped Nigeria’s foreign reserve to rise at a steady pace.

According to the latest data obtained from the Central Bank of Nigeria (CBN), Nigeria’s foreign exchange reserves now stand at $36.57 billion, having increased sharply from $33.42 billion as of April 29, 2020. This shows a gain of $3.15 billion dollars in 33 days.

UBA ADS

What you need to know about Nigeria’s foreign reserves

Foreign exchange reserves are financial assets held in reserve by CBN in foreign-dominated assets. These foreign financial dominated reserves are used to meet payment or debt obligations. They also influence monetary policies and include foreign-dominated currencies, foreign-dominated bonds, and other International backed securities. 

This feat recorded above (rising FX reserves) has given the CBN Governor, Godwin Emefiele, more ammunition to defend the naira.

(READ MORE: Investors cash in N1.2 trillion at Nigeria’s stock market for the month of May)

GTBank 728 x 90

Also, the macro fundamental of Nigeria’s currency presently shows that Mr. Emefiele has kept his word on hitting currency speculators hard.

The naira has been stable in the short term, even though data obtained from Everdon Bureau de Change showed that the currency had failed to break the resistance price level of N450 to $1 in the last 6 days in Nigeria’s parallel market.

Weeks ago, the naira traded as high as N475 to $1. However, on Thursday morning it was sold at N446 to $, proving that Nigeria’s monetary captain is bent on stabilizing the currency for the long haul. Recall that the CBN Governor had warned currency speculators and hoarders to stop manipulating Nigeria’s exchange rates. He also recommended that Nigerians should stop patronizing black market currency operators. According to him, the rates they are buying the dollar from the black market are unrealistic.

(READ MORE:Naira strenghtens further at the parallel market)

In addition, Nigeria’s central bank recently re-started the weekly dollar sales of $100 million for small businesses and individuals who are in genuine need of foreign exchange.

app

Philip Anegbe, Team Lead at CardinalStone Research, had recently told Nairametrics that the pressure on the naira would ease off soon. He said:

Patricia

“I believe some of the recent pressures on FX is driven by speculators’ panic responses to weakness in dollar earnings, the decline in FX inflow through the I and E window, and suspension of dollar sales to BDCs (Bureau De Change operators). 

“The imminent resumption of BDC activities is therefore likely to slightly ease Naira pressures in the parallel markets, but we believe the underlying medium-term fundamental concerns facing the Naira still remain.”

Continue Reading

Business News

U.S dollar gains, America sanctions Chinese Airlines from flying into the U.S.

Nigerians hoping for transactions via the U.S dollar to countries like France would have the need to pay fewer dollars to fulfill such transactions. 

Published

on

dollar foreign debt, Foreign investors trapped in the debt market as dollar scarcity persists, U.S dollar gains, America sanctions Chinese Airlines from flying into the U.S. , U.S dollar gains, America sanctions Chinese Airlines from flying into the U.S.

The American dollar was up on Thursday morning based on global investors returning to the safe-haven asset as America-China tensions strengthened exponentially.

The American Dollar Index that checks the U.S dollar against a basket of other major currencies such as (Japanese yen, Euro, British pounds sterling, Swedish krona, Canadian dollar, Swiss France) was up 0.21% to 99.46 by 5:30 am Nigerian local time.

UBA ADS

The U.S dollar index also helps to track the strength of the U.S dollar in correlation to the biggest forex trading partners around the world. 

What it means: Nigerians hoping to meet foreign exchange debt or payment obligations, transactions via the U.S dollar to countries like France, United Kingdom, Australia, Germany Japan, would have the need to pay fewer dollars to fulfill such transactions.

(READ MORE: U.S dollar falls as investors panic over U.S-China relationship)

GTBank 728 x 90

The political fundamentals among these major powers turned ugly as the U.S government suspended Chinese airlines’ flight from flying into the U.S coming to effect from June 16 after the Chinese barred U.S carriers from re-entering China.

U.S dollar gains, America sanctions Chinese Airlines from flying into the U.S.

Relations between the two countries soured after China’s approval of the enactment of national security laws in Hong Kong and Macau last month.

Hong Kong’s Legislative Council passed a national anthem bill, a precursor to the national security laws, earlier in the day.

According to a recent poll conducted by Reuters, the majority of currency experts believe that there was an elevated risk that the US-China tensions will renew safe-haven bets in the next 6 months, meaning the dollar could resume its bullish momentum in the mid-term.

app

The report from the poll concluded that:

Patricia

 “More than 70% of 57 currency analysts said the risk was “high” that the U.S.-China standoff would renew bets in favor of safe-haven currencies over the next six months. 

“International rates to borrow dollars on cross-currency basis swaps, which were extremely high in mid-March, have hit low levels, with the latest euro-dollar three-month swaps rate suggesting it has become more costly to borrow the euro instead.” 

 

 

app
Continue Reading

Business News

Lagos discloses strategies to best manage revenue in COVID-19 era, reduces land use charge

Dr. Rabiu Olowo disclosed strategies adopted by the state to keep its finances intact and optimize the revenue potentials

Published

on

Lagos discloses strategies to best manage revenue in covid-19 era, reduces land use charge

The Lagos State Government has announced strategies adopted by the state to keep its finances intact and optimize the revenue potentials in the face of the devastating effect of the coronavirus pandemic on the economy.

This was disclosed by the Lagos State Commissioner for Finance, Dr. Rabiu Olowo, while presenting the scorecard of his ministry at the ministerial press briefing to make Governor Babajide Sanwo-Olu’s first year in office at Alausa, Ikeja.

UBA ADS

Dr. Olowo said that Lagos state achieved a 106% performance with respect to revenue against the budget in the first quarter of 2020.

He said that, although the direct impact of the pandemic has led to a drop in the State’s internally generated revenue and Federal Allocation, potential decline of Foreign Direct Investment (FDI) and increased pressure on income and purchasing power of Lagosians, the present administration had in a swift response re-ordered the 2020 Budget and re-prioritized it’s Capital Expenditure to reflect current realities.

(READ MORE:Lagos Auditor-General calls for amendment of financial management law)

GTBank 728 x 90

The review of the 2020 budget assumptions was due to the devastating effects of the coronavirus pandemic and the dwindling oil prices.

Lagos discloses strategies to best manage revenue in covid-19 era, reduces land use charge

The Commissioner explained that, apart from the re-ordering of the 2020 budget, the government has also initiated and adopted some other strategies to manage the impact of the pandemic.

These strategies include the principal and Interest moratorium for Small and Medium Scale Enterprises (SMEs) with loans from the Lagos State Employment Trust Fund (LSETF); Extension of Tax Filling; management and control of dedicated funds for COVID-19 response; timely payment of hazard allowance and arrangement of Special Peril Insurance for frontline health workers and volunteers.

Dr. Olowo also said that the government had succeeded in restructuring all existing internal loan facilities previously at the rate of 18%-20% to 14%, bringing about huge savings on the State’s loan repayments, thereby increasing cash flows.

app

On Revenue Optimization, the Commissioner revealed a number of initiatives put in place in the last one year by the present administration such as F.O.R.C.E (Focus On Revenue Creation Everywhere), an initiative conceived to monitor, review and drive innovative revenue performance whilst providing revenue assurance and the deployment of E-Tax platform for tax operations and administration matters, aimed at improving convenience in the payment of taxes to promote compliance.

Patricia

(READ MORE:Lagos State partners Microsoft to train 18,000 teachers)

He also pointed out that the automation of the operations of Lagos State Lottery Board is among the improvements that will guarantee sustainable revenue optimization to aid the finance infrastructural projects that will improve the lives of Lagosians, create jobs, and stimulate the economy through government spending.

 

On Land Use Charge (LUC), Dr. Olowo stated that the LUC reform is necessary to accommodate the agitations of Lagosians and to reduce the financial pressure on citizens.

app

According to him, “As we are aware, in 2018, there was an increase in LUC rate and at the same time a revaluation of property; this twin-shock had a sporadic increase in LUC assessment. The soon to be revealed reform will among other things, reverse the rate to pre-2018 rate”.

He explained that the intention of the State government is to keep economic activities going, without necessarily causing any untold hardship that will further aggravate the present financial hardship confronting all sectors of the State’s economy.

The finance commissioner also recalled that Governor Babajide Sanwo-Olu had in January this year, signed the Issuance of N100bn Series III Bond (the largest Bond Issuance ever raised by any Sub-National entity in the country) under its N500 Billion Bond Issuance Programme, to assist the State meet its huge infrastructure needs in critical sectors across Health, Environment and Roads, among others.

 

Continue Reading