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Corporate Actions: MEGA LOSSES, and the end of a drought

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Corporate Actions

Corporate actions are decisions taken by companies’ boards of directors or management teams, that could have impacts on the firms themselves or shareholders. 

Examples of corporate actions include the release of quarterly and full year results,  payment of dividends, closing of shareholders’ registers, announcing qualification dates and Annual General Meeting (AGM) dates.  

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Corporate Actions that held last week 

Last week saw a flurry of results released, as companies strove to beat the 90day deadline after their financial year. Companies releasing their results after the deadline, are fined. 

Majority of listed firms have December as their financial year end. Regulatory deadline, therefore, is March 31st, 2019. 

 Dangote Flour Mills 

Dangote Flour Mills released its results after closing hours. The company recorded a N1.1 billion loss for the 2018 financial yearas against a N15 billion profit after tax recorded in 2017. 

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UACN impairs N9.5 billion 

UAC of Nigeria Plc also recorded a loss. The conglomerate made a loss after tax of N9.5 billion for the 2018 financial year.

The poor results were due to other operating losses of N8.9 billion pertaining to UPDC and its joint ventures which were impaired.  

The firm however declared a dividend per share of N0.64.  

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Fewer palm kernels 

Okomu Oil Palm also released its full year 2018 results. Revenue was flat at N20.2 billion, while profit before and after tax dipped slightly. The firm recorded a profit after tax of N8.5 billion, N800 million lower than the N9.3 billion recorded in 2017. Nevertheless, it has declared a dividend of N3 per share.  

A mega loss  

Medview Airlines recorded a N10.3 billion loss after tax for the 2018 financial year. The firm attributed this to lack of aircraft and a high cost of maintenance.  

A higher spectrum  

Global Spectrum Plc, an oil and gas servicing company, saw an increase in both top and bottom lines for the 2018 financial year. The company made a profit after tax of N547 million, nearly 5 times the N110 million recorded in 2017.  

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Smaller profits at Capital Hotel 

Capital Hotel (parent company of the popular Sheraton Abuja) recorded a slight increase in revenue, but profit after tax dipped sharply from N935 million in 2017 to N379 million in 2018. The fall was due to smaller earnings from the other operating income segments. The directors have recommended a dividend for the 2018 financial year. 

Smaller losses at Scoa 

Scoa Plc had an increase in revenue for the 2018 financial year, with revenue hitting N2.4 billion. Loss after tax dropped sharply to N45.8 million due to an income tax write back of N461 million.  

Increase in expenses cause ETranzact losses 

ETranzact international Plc recorded a loss after tax of N3.1billion for the 2018 financial year, as against N208 million profit made in 2017.  This was largely due to a spike in operating expenses. The company also had to make provision for aN11 billion fraud case.  

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Union Dicon Salt Plc 

Union Dicon Salt Plc recorded a loss after tax of N135 million, for the second consecutive year running. The loss is also the fourth in almost half a decade of operations.  

End of a drought  

Wema Bank ended an almost 10year dividend drought, with its proposed three kobo dividend. The company released its full year 2018 results on Friday. 

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Gross earnings for the group rose from N65.2 billion in 2017 to N71.5 billion in 2018. Profit after tax also rose from N2.2 billion in 2017 to N3.3 billion in 2018.  

A pharma loss 

Pharmadeko Plc recorded a N265 million loss after tax for the 2018 financial year, as against a N12.6 million profit recorded in 2017. The company may also have been hard hit by the codeine ban, which led to the stoppage of sales of its key product, Parkalin cough syrup.  

Berger Paints 

Berger Paints declared a final dividend of N0.65 for the 2018 financial year.  

Initiates on a roll  

The initiates Plc, a company involved in waste managementrecorded an increase in both top and bottom lines. Revenue hit N700 million in 2018, while profit after tax stood at N102 million. 

NCR profits dips sharply 

NCR Nigeria Plc saw a slight decline in revenue and a sharp fall in profit. Revenue fell by N300 million to N6.9 billion.   

CHI’s flat profit

Consolidated Hallmark Insurance had an uptick in gross premium written, but a flat profit after tax, due to an increase in premiums paid. Gross premium rose by 21% to N6.8 billion in 2018, while claims paid rose by 26% to N1.7 billion. Profit after tax came in at N406 million.  

The company has declared a N0.02 dividend.   

Forte Oil profit falls sharply 

Forte Oil’s profit after tax (and continuing operations) dipped sharply, despite a rise in revenue. Revenue rose from N86.1 billion to N134 billion in 2018. Profit after tax, however, fell from N1.3 billion in 2017 to N361 million in 2018. This was due to financing costs which rose from N2 billion in 2017 to N3 billion in 2018.  

Eterna profit dips  

Eterna Plc saw an increase in revenue, but a decline in profit due to an exchange rate loss and an increase in finance costs. Revenue rose from N173 billion in 2017 to N251 billion in 2018. Profit after tax, however, fell from N2 billion in 2017 to N1 billon in 2018.  

Oando profit rises due to a tax credit. 

Oando Plc saw an increase in both revenue and profit after tax. Revenue rose from N497 billion in 2017 to N679 billion in 2018. Profit after tax rose from N13.4 billion in 2017 to N28.7 billion in 2018.  

 MRS Oil slips into loss territory  

MRS Oil had a decline in revenue and a loss after tax in the 2018 financial year. Revenue fell from N107 billion in 2017 to N89 billion in 2018. Loss after tax stood at N1.2 billion in 2018,  compared to a N1.3 billion profit recorded in 2017.  

A recovery at Japaul  

While Japaul’s revenue dipped, the company cut down on its losses. Revenue dipped from N1.9 billion in 2017 to N936 million in 2018. Losses, however, dropped from N13.2 billion in 2017 to N6.5 billion in 2018.  

STrebounds  

Sovereign Trust Insurance released its full year 2018 results. Gross premium written rose by 23% to N10.5 billion, while profit after tax jumped 118% to N344 million.  

AXA Mansard profit dips  

AXA Mansard profit dipped slightly for the 2018 financial year. While gross premium written increased from N26.8 billion in 2017 to N33.9 billion in 2018, profit after tax dipped from N2.6 billion in 2017 to N2.4 billion in 2018.  

Unilever Nigeria  

Unilever Nigeria saw an increase in both topline and bottom-line. Revenue rose from N85.1 billion in 2017 to N92.8 billon in 2018. Profit after tax also rose from N7.4 billion in 2017 to N10.5 billion in 2018.  

A dividend of N1.50 per share has been declared.  

Total Nigeria Plc  

Total Nigeria Plc had a slight increase in revenue and a dip in profit. Revenue rose by 7% from N288 billion in 2017 to N307 billion in 2018. Profit after tax, however, dipped from N8 billion in 2017 to N7.9 billion in 2018. 

The company declared a final dividend of N14 per share.  

Tranex slips into loss mode 

Trans-Nationwide Express slipped into a loss in its 2018 financial year. Revenue rose by 11% in 2018 to N775 million. Loss after tax stood at N26.4 million in 2018, as against a N3.6 million profit recorded in 2017.  

Good times at Berger  

Berger Paints Plc had an uptick in both topline and bottom-line. Revenue rose by 12 % to N3.7 billion in 2018. Profit after tax rose by 30% to N320 million in 2018.  

The company has declared a N0.65 dividend, N0.15 higher than 2017.  

Mixed fortunes at Meyer  

For Meyer Plc, 2018 saw a slight dip in revenue, with the company returning to profitability. Revenue dipped slightly from N1 billion in 2017 to N970 million in 2018. Profit after tax stood at N319 million, as against a N267 million loss for the corresponding period of 2017.  

MRS has a new director 

The board of directors of MRS Nigeria Plc has appointed Chris Okorie as a director. Okorie is the Group Executive Director at MRS Holdings Limited.  

 

RAK Unity’s numbers dip 

RAK Unity, a small company in the downstream petroleum spacesaw a slight dip in its numbers. Revenue fell from N10.3 billion in 2017 to N9.5 billion in 2018. Profit before tax was essentially flat at N45.2 million. Profit after tax dipped slightly by 2.43% to N29.6 million.  

Unity returns to profit  

Unity Bank returned to profit in its 2018 financial year. While gross earnings fell sharply from N89.9 billion in 2017 to N37.3 billion in 2018. The bank however made a N1.2 billion profit after tax in 2018, as against a N14.9 billion loss recorded in 2017.  

 

Ikeja Hotel’s profit jumps  

Ikeja Hotel’s profit after tax rose sharply in 2018. While turnover rose from N12.1 billion in 2017 to N13.2 billion in 2018, profit after tax jumped from N603 million in 2017 to N1.1 billion in 2018.  

 

Livestock Feeds Plc  

Livestock Feeds had lower turnover, but declined in losses in 2018. Revenue fell from N10.1 billion in 2017 to N7.8 billion in 2018. However, losses declined from N725 million in 2017 to N620 million in 2018.  

 

Ekocorp still swimming in losses 

Ekocorp Plc’s losses dropped in the 2018 financial year. While revenue remained essentially flat year on year at N1.4 billion, loss after tax dropped from N1.2 billion in 2017 to N328 million in 2018.  

 

A Jaiz Bounce  

Jaiz Bank had a slight increase in gross earnings, and a sharp increase in profit after tax in 2018. While gross earnings increased by 11% to N8.7 billion, profit after tax rose by 55% to N823 million in 2018.  

 

A good year for Caverton  

Caverton Offshore Support Group (commonly known as Caverton) had a decent performance in 2018. Revenue rose by over 50% to N32 billion in 2018. Profit after tax also rose by 61% to N4.2 billion in 2018.  

The company declared a dividend of N0.25 per share, up from the N0.15 paid in 2017.  

 

SUNU Assurances 

SUNU Assurances had a slight decline in gross premium written, but slipped into a loss in 2018. Gross premium fell from N3.1 billion in 2017 to N3 billion in 2018. The firm made a loss after tax of N41 million, as against a N5.6 million profit made in 2017.  

 

CAP Plc 

Revenue rose by 9% to N7.7 billion in 2018. Profit after tax rose by 35% to N2 billion in 2018.  The company declared a dividend of N2.50 per share.  

ABC Transport Plc 

ABC Transport had a dip in revenue and suffered a loss in 2018. Revenue dipped from N7.1 billion in 2017 to N6.8 billion in 2018. The company however made a loss after tax of N110 million in 2018, as against a profit after tax of N513 million in 2017.  

CCNN Plc  

CCNN had a sharp increase in revenue and profit in 2018. Revenue rose by 62%  to N31.7 billion in 2018. Profit after tax rose even higher by 78% to N5.7 billion in 2018. 

The firm declared a dividend of N0.40 per share.  

 

A N1.30 Glass 

Revenue rose from N22.1 billion in 2017 to N26.3 billion in 2018. Profit after tax also increased from N4.1 billion in 2017 to N5 billion in 2018.  

Beta Glass declared a dividend per share of N1.30 for the 2018 financial year.  

 

Sterling Bank  

Sterling Bank had an increase in gross earnings and profit in 2018. Gross earnings increased from N133 billion in 2017 to N152 billion in 2018. Profit after tax however rose at a much smaller rate from N8 billion in 2017 to N9.2 billion in 2018.  

The bank declared a dividend of N0.02 per share.  

Fidelity Bank Plc 

Fidelity Bank had an increase in gross earnings and profit in 2018. Gross earnings increased from N180 billion in 2017 to N188 billion in 2018. Profit after tax also rose from N17.7 billion in 2017 to N22.9 billion in 2018.  

The bank  initially declared a N0.22 dividend, before issuing a notice stating a N0.11 dividend.  

 

FCMB  

FCMB had a sharp increase in profit in 2018. Gross earnings increased from N169 billion in 2017 to N177 billion in 2018. Profit after tax however rose sharply from N8.6 billion in 2017 to N14.9 billion in 2018.  

The bank declared a dividend of N0.14 per share.  

 

Portland Paints 

Revenue rose from N2.3 billion in 2017 to N2.8 billion in 2018. Profit after tax rose sharply from N58.1 million in 2017 to N206 million in 2018.  

The firm declared a dividend of N0.05 per share

 

Ecobank profit rises sharply 

Gross earnings rose by 1% to N773 billion in the 2018 financial year. Profit after tax rose sharply by 46% to N102 billion in 2018.

 

GSK Consumer Nigeria  

The pharma giant had an increase in its topline and bottom-line in 2018. Revenue rose from N16 billion in 2017 to N18.4 billion in 2018. Profit after tax also increased from N486 million in 2017 to N617 million in 2018.  

The firm declared a dividend of N0.50 per share.  

 

A new MD  

UAC of Nigeria Plc announced the appointment of a new MD in the person of Fola Aiyesimoju. Fola is the founder of Themis Capital Management. Themis, a private equity firm, took a key stake in the conglomerate last year.  

http://www.nse.com.ng/Financial_NewsDocs/25450_U_A_C_N__OF_NIGERIA_PLC._CORPORATE_ACTIONS_MARCH_2019.pdf 

Custodian Investments Plc  

Custodian Investments Plc released its results for the 2018 financial year. Gross revenue increased from N43 billion in 2017 to N50 billion in 2019. Profit before tax rose slightly, but profit after tax dipped. Profit before tax increased from N8.9 billion in 2017 to N9.5 billion in 2018. Profit after tax dipped from N7.3 billion in 2017 to N7.1 billion in 2018. 

The company declared a final dividend of N0.35 kobo, bringing the total dividend paid to N0.45 in 2018.  

 

Bad year loading for PZ Nigeria 

PZ Cussons Nigeria released its results for the nine months ended February 2019. Topline and bottomline dipped. Revenue fell by 12% to N55 billion in 2018. Profit before tax fell by 52% from N1.9 billion in 2017 to N936 million in 2018. Profit after tax also dropped from N1.3 billion in 2017 to N807 million in 2018.  

 

 Corporate actions for this week

Fidelity Bank Plc will also be holding an investor call on Monday the 1st of April to discuss its FY 2018 results which were released on Friday. 

FCMB Group Plc will be holding an investor call on Tuesday the 2nd of April, following last week’s release of its full-year 2018 audited results.  

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 [email protected]

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Cryptocurrency

Dogecoin gains 50% in less than 24 hours, highest single-day gain since 2017

The fast-growing altcoin has a block period of 1 minute, and the total supply is unlimited.

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The world of cryptocurrency got another shocker as a fast-growing altcoin gained 50% some hours ago, the highest single-day percentage gain since 2017. This was captured by a leading crypto researcher, Ryan Watkins.

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Data from Coinmarketcap shows that the cryptocurrency is the 27th most valuable crypto asset, with a market capitalization of $528.3 million.

Dogecoin is presently trading at $0.004217 up 51.93% at the time this report was drafted.

Quick fact: Dogecoin is a type of digital coin that is decentralized, and facilitates peer-to-peer digital transactions. This means you can send money online with much ease. It’s usually referred to as “the internet currency.”

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READ MORE: Best time to make money trading BTCs

It is different from BTC’s proof-of-work protocol in many ways, one of which is the Scrypt technology. The fast-growing altcoin also has a block period of 1 minute, and the total supply is unlimited, meaning that there is no limit to the amount of Dogecoin that can be mined.

“The recent rise of dogecoin, a meme coin, should serve as a reminder to everyone in the space that the most popular use case for crypto is still pure speculation,” said Anil Lulla, a former analyst at Bloomberg and co-founder of cryptocurrency research firm, Delphi Digital.

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Global search interest on “How to buy a dogecoin” has also skyrocketed from a score of 25 to 100, the highest possible search popularity score, over the past few days, according to 12-month Google Trends data analyzed by CoinDesk.

Some of the videos on TikTok, a newly popular social media platform, garnered more than 100,000 “likes,” while all videos with the “dogecoin” hashtag amassed several million.

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Currencies

U.S dollar gains against major currencies, U.S Fed warning limits upside

The U.S. Dollar Index tracks the American dollar against a basket of other major currencies.

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U.S dollar rises against major currencies, U.S and China’s economic data support the dollar, U.S dollar gains ground, U.S. President Trump boosts investors’ Optimism

The American dollar gained on Wednesday at London’s trading session, with global investors and currency traders turning to the safe-haven asset amid a resurgence of COVID-19 caseloads.

The American Dollar Index, which monitors the U.S dollar against a basket of other currencies, gained 0.06% to 96.907 at 5.33 am local time.

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However, many currency traders’ positive bias on the greenback further weakened over a warning from several U.S. Federal Reserve officials that the rising number of COVID-19 caseloads could distort the fragile economic recovery, with some global central banks stimulus programs due to expire soon.

READ MORE: Novavax secures $1.6 billion funding for COVID-19 vaccine production

“The mood changes day by day, but the dollar looks to be supported for now as investors turn more cautious about the virus,” Yukio Ishizuki, foreign exchange strategist at Daiwa Securities, told Reuters.

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Quick fact: The U.S. Dollar Index tracks the American dollar against a basket of other major currencies (like the Japanese yen, British pound sterling, Swedish Krona, Euro). Individuals hoping to meet foreign exchange payment obligations, via dollar transactions to countries like Europe, and Japan, would need to pay less dollars in meeting such obligations.

READ MORE: Gold price rises further due to influx of new COVID-19 cases

“The Fed’s comments on the economy sound sombre. There’s reason to worry because it is hard to see when the virus will be brought under control,” Yukio added.

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Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, spoke about the fundamentals triggering the U.S index volatility. He said:

“The USD is stronger this morning, aided by risk aversion and perhaps the continued run of surprisingly strong US data.

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“However, the US data’s comfort blanket is being throttled by the rising COVID-19 case count in many US states that might point to renewed economic headwinds ahead.”

Patricia
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Currencies

Exchange rate remains stable as CBN “adjust official rates” from N360 to N381/$1 

The CBN still continues to warn against currency speculators who patronize the black market.

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Central Bank Continues intervention in Forex market to stabilize Naira, Naira to depreciate slightly over $1.52 billion maturing contracts expires, Naira hits N388.84 to $1 at the currency spot market, Investors and Exporters (I&E) window, Naira weakens against the dollar by 1.14% amidst uncertainty, Naira gains against the dollar at I&E window, forex liquidity up by 242%  

Data published on the website of the FMDQ on Tuesday reveals that the CBN official rate has been adjusted from N360 to a dollar to N381 to a dollar sending mixed messages to traders who wonder if the CBN has devalued again. However, the official rate quoted on the website of the CBN remains at N360/$1. 

According to Reuters, “the naira eased 5.5% on the official market on Tuesday, after the central bank sold dollars to lenders at a lower rate, bowing to pressure from international lenders to unify its multiple exchange rates.” Reuters also reports “the naira eased to 380.50 in off-market trades, from 360.50 close on Monday” quoting sources from traders. 

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Nairametrics cannot confirm if the latest adjustment is reflective of the SMIS rates or if the central bank has now taken a bold step towards unification and adjusted its official rate. Reuters claims it’s a move to “unify the exchange rate”. 

NAFEX: The exchange rate between the naira and dollar at the Investors and Exporters (I&E) window remained stable on Tuesday, closing at N386.50 to a dollar. This was the same rate that was recorded on Monday as traders continue to mull over CBN’s adjustment of the exchange rate at the SMIS window. The opening indicative rate was N387.18to a dollar on Tuesday. This represents an 18 kobo drop when compared to the N387 to a dollar opening rate that was recorded on Monday.      

Parallel Market: At the black market where forex is traded unofficially, the naira remained stable as it closed at N461 to a dollar on Tuesday which was the same rate that it exchanged on Monday.  

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Nigeria continues to maintain multiple exchange rates comprising the CBN official rate, the BDC rates, SMIS and the NAFEX (I&E window). Nairametrics reported last week that the government has set plans in motion to unify the multiple exchange rates in line with requirements from the World Bank. Nigeria is seeking a world bank loan of up to $3 billion.    

Forex Turnover   

Meanwhile, forex turnover at the Investor and Exporters (I&E) window had a rebound on Tuesday, July 7, 2020, as it gained 918.4% day on day, a significant increase from the figure that it achieved on Monday at the foreign exchange market. This is according to data from the FMDQOTC, an exchange where forex is traded by foreign investors and exporters.      

According to the data tracked by Nairametrics, forex turnover rosefrom $10.15million on Monday, July 6, 2020, to $103.37million on Tuesday, July 7, 2020, representing a 918.4% gain on a day-to-day basis. This is a reversal from the previous day’s drop in turnover but falls short of the $200 million mark that was in January and last week. 

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The improved liquidity appears to have brought some measure of temporary stability in the foreign exchange market.   

Forex Sales Data 

The latest figure from the CBN shows that the apex bank injected $11.5 billion foreign exchange into the economy in the first quarter of 2020. The data showed that CBN supplied $2.96 billion, $3.39 billion and %4.7 billion in the months of January, February and March respectively into the forex market. 

The I&E window, small and medium enterprises and invisible segments had a total of $7.23 billion, the BDC segment got $3.6 billion and the interbank and WDA/RDAS received $0.67 billion. 

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The CBN suspended the sales of forex due to the lockdown in the country in April which was triggered by the coronavirus outbreak. It however resumed partial sales of forex in May to commercial banks for households and SMEs making essential imports. 

Forex Liquidity Issues  

The volatility and uncertainty of the forex market still persist due to accumulated demand and liquidity shortages across markets.  The rise in demand and contrasting drop in supply has called for another round of devaluation, which the CBN has insisted it had plans to implement.   

The CBN on Friday adjusted the naira at the retail forex auction from N360 to a dollar to N381 to a dollar in a move that most analysts see as part of the plans to unify the exchange rate of the Naira. A devaluation last occurred in March. The apex bank wants to unify the exchange rate to conserve the dwindling external reserves which have been hard hit by demand by ever-increasing importers and the foreign investors wishing they exit the country.   

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This current step taken by the CBN has moved the retail auction for importers and individuals, which is the official rate, closer to the over-the counter-spot for investors and exporters. Nairametrics spoke to some traders who are still reviewing what the latest move by the CBN could mean on the future price of forex. Whilst some believe this is a major step towards reunification others believe the real test of the value of the exchange rate could be when the economy finally opens. For now, projection is all speculation, one trader informs Nairametrics.      

The CBN still continues to warn against currency speculators who patronize the black market, thus widening the gap between it and the I&E window. The CBN maintains that the perceived demand cannot be substantiated following the drop in economic activities induced by the COVID-19 pandemic suggest demand should be low due to travel restrictions and drop-in economic activities.      

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The further decline in liquidity could further fuel speculations in the black market where the exchange rate has traded at a premium of N60+ over the last few weeks. The CBN claims most of the demand being cited is not represented by any official documentation and that it has informed foreign investors with genuine forex demand to be “patient” and that they will get their forex.  

Patricia
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