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NLNG set to expand capacity by 40% with two additional facility

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LNG

Nigeria Liquefied Natural Gas (NLNG) has announced plans to invest more than $10 billion into the gas company to boost its capacity by 40%. This according to the company will allow it export 66 million cubic metres a year to markets in Europe and Asia.

According to Bloomberg, NLNG’s major shareholders Royal Dutch Shell, Total SA and the Nigerian National Petroleum Corporation (NNPC) are, however, skeptical about the profitability of the new expansion drive.

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The report noted that the high level of insecurity in the oil-rich Niger-Delta, higher taxes, and unstable gas prices are some of the major concerns delaying the implementation of the new expansion project.

Nigeria, last year, shipped an estimated 46 million cubic metres of Liquefied Natural Gas (LNG), making it the fourth largest exporter of LNG in the world.

The new expansion will see the construction of two new processing trains to add to an existing six trains.

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Speaking at the World LNG Summit held in Portugal recently, Tony Attah, Managing Director and Chief Executive Officer of Nigeria LNG Limited, noted that the company is making steady progress towards achieving Final Investment Decision (FID) on its Train 7 Plus (7+) projects.

He further noted that the gas company has grown from an initial investment of about $6 billion, into a $15.6 billion worth investment with an asset base of about $11 billion.

Nigeria LNG Limited was incorporated as a limited liability company on May 17, 1989, to harness Nigeria’s vast natural gas resources and produce LNG and Natural Gas Liquids (NGLs) for export.

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It is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation (NNPC) – 49%, Shell Gas B.V. – 25.6%, Total Gaz Electricite Holdings France – 15%, and Eni International – 10.4%.

Patricia

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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Financial Services

Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19

Note that some companies have had to revise their earnings estimates due to pandemic.

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Guinea Insurance Plc

Guinea Insurance Plc is being very optimistic, having projected a 78.6% rise in gross premium written to N1.8 in Q3 2020, up from N1 billion during the comparable period in 2019. The insurer also forecasted a profit after tax of N185.8 million for the period, indicating an expected better performance compared to N735 million loss recorded in Q3 2019.

The earnings forecast, which was sent to the Nigerian Stock Exchange earlier today, also estimated that reinsurance expense for Q3 will be at N337.5 million. Claims expenses, underwriting expenses, and other operating experiences were equally put at N331.3 million, N292.6 million, and N692.2 million, respectively.

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Note that this forecast is coming amid the negative economic impacts wrought by the Coronavirus pandemic. But while a growing list of companies (including Guinness Nigeria Plc) has downgraded their 2020 earnings and profitability forecasts, Guinea Insurance is expecting growth and that is good.

In Q1 2020, Guinea Insurance Plc reported gross premium written OF N207 million and a profit after tax of N12.6 million. The company’s consolidated half-year 2020 financial has not been released and is expected sometime between this month and next month.

The company’s share price ended today’s trading on the Nigerian Stock Exchange at N0.20. Year to date, this stock has not recorded any price movement.

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Economy & Politics

CBN unification of exchange rate a welcome development – MAN

Ahmed urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates.

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CBN unification of exchange rate a welcome development-MAN

The President of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, announced on Friday that the recent CBN unification of Nigeria’s exchange rate is a welcome development that will boost investor confidence in Nigeria.

He said the exchange rate unification will enable stable planned production for manufacturers in Nigeria leading to economic growth, adding that the Manufacturers Association had urged for an exchange rate unification to enable a market-friendly business environment in Nigeria.

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“Clearly, this is a welcome development and a laudable initiative that has come at the right time.”

“This is more so, particularly, now that the economic outlook is gloomy in light of the impact of the ravaging COVID-19 pandemic that has culminated in uninspiring macroeconomic situations,” he said.

He revealed that the World Bank had attributed Nigeria’s falling Foreign Direct Investment (FDI) to the multiple exchange rates as investors felt a “manipulation of the foreign exchange market.”

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“The unification will also boost investors’ confidence, control rising inflation, and promote transparency, entrench better exchange rate management and eradicate distortions to the barest minimum,” he added.

READ MORE: After hitting a 3-year low during the week, Naira stabilizes as traders wonder what next)

He urged the CBN to tackle activities that made speculators manipulate the multiple exchange rates like “round-tripping” which he says expand the inflows of foreign investment into the economy.

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He called on the Central Bank to implement 2 strategies to ensure a smooth transition into a unified exchange rate system.

“The first is to limit the short-term pains until efficiency gains materialize by responding swiftly with an inward-oriented rescue guideline while the second should seek to boost the pace at which such efficiency gains materialize,” he said.

He advised, it’s necessary the CBN “submit all the instruments of exchange rate determination” towards a free-market approach.

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Appointments

Seplat appoints Emeka Onwuka as CFO

Onwuka has over 30 years’ experience in financial services across Sub-Saharan Africa. 

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Seplat appoints Emeka Onwuka as CFO

Seplat Petroleum Development Company Plc. has appointed Mr. Emeka Onwuka as Chief Financial Officer and Executive Director, Lagos, and London.

The appointment takes effect from August 1, 2020.

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The appointment was announced in a notice sent to the Nigeria Stock Exchange on Friday and has been ratified by the company’s board of directors.

According to the notice which was signed by the company secretary and chief governance compliance officer, Mrs. Edith Onwuchekwa, the Board of Seplat is confident that “the wealth of knowledge and experience Onwuka brings will be a great addition to the Company”.

Mr. Onwuka has over 30 years’ experience in financial services across Sub-Saharan Africa. Mr Onwuka is a Partner at Andersen Tax Nigeria and holds various Board positions as Chairman; FMDQ Securities Exchange Limited; Director FMDQ Holdings Limited; Director, Ecobank Nigeria Limited; and Director, Bharti Airtel Nigeria.

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He was also the former Group Managing Director /CEO of Diamond Bank Plc and former Chairman of Enterprise Bank Limited.

READ MORE: This is what Ngozi Okonjo-Iweala is up against

He is a Chartered Accountant, a Fellow of the Institute of Chartered Accountants of Nigeria, and a Fellow of Chartered Institute of Taxation of Nigeria.

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Mr. Onwuka received his B.SC. in Political Science from the University of Nigeria, Nsukka, and holds an MBA from the University of Benin.

He is an alumnus of the Lagos Business School, Wharton Business School and Harvard Business School.

Onwuka also holds the Nigerian National Honor, Officer of the Order of the Niger (OON).

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