Skyway Aviation Handling Company Plc (SAHCO), reported revenues of N3.1 billion in the second quarter of 2020 compared with N3.5 billion in the same period in 2019. This represents an 11.9% decrease relative to the same period last year.

SAHCO Plc, formerly known as Skypower Aviation Handling Company Plc, prior to its privatization, is 100% owned by the Sifax Group, and incorporated as an Aviation Ground Handling Service Provider under the Nigerian Company & Allied Matters Act of 1990. SAHCO Plc’s duties involve all the actions that take place from the time an aircraft touches down on the tarmac, to the time it is airborne. The company also ensures that the right assignment is carried out in an efficient, speedy, and safe manner, deploying the right tools.

A careful analysis of the latest results of the company indicates that revenues dipped as a result of COVID-19 travel restrictions. Travel restrictions affected SAHCO Plc’s operations, but an increase in revenues from domestic and foreign cargo handling gave the company a lifeline amidst business uncertainties.

SAHCO Plc has 10 revenue-generating segments: foreign handling, domestic handling, cargo handling – export, DCS/PAX handling, cargo handling – domestic, equipment rental, investment property, pilgrimage, haulage/crew bus services, and airport security services.  Revenues from eight of these segments declined in Q2 2020, compared with the same period last year; however, revenues from cargo handling increased.

(READ MORE:NAHCO retrieves Ethiopian Airlines handling deal)

Revenues from cargo handling – income increased by 16.04% to N2.2 billion in the current period, compared with  N1.9 billion in the same period last year. Revenues from cargo handling – export increased by 8.26% to N146.7 million in the period under review, relative to N135.5 million in the same period last year.

It is expected that performance would improve, following the lifting of foreign travel restrictions on the 5th of September 2020. However, things may not transform sooner, as there are one or two challenges facing the sector. For example, although travel restrictions have been lifted, the conditions passengers have to meet before travel, may be overwhelming for some people to go through; thus, the number of travelers is not expected to peak yet.

The Earnings Per Share (EPS) of the company declined by 92.11% in Q2 2020, from 12.67 kobo to 1 kobo, compared with the same period last year. The decline in distributable profit by 93.34% to N11.42 million in Q2 2020, relative to N171.50 million in Q2 2019, contributed to this decline.

SAHCO Plc’s shares were listed on the floor of the NSE on April 26th, 2019. The shares currently trade at N2.93 per unit. The highest price for a unit of share in 52 weeks was N4.19 and the lowest N1.42. A total of 20,391 units was sold in the last seven days trades. Shares outstanding is 1,353,580,000 units and its market capitalisation is N3,965,989,400 billion.

(READ MORE:FG travel restrictions on 13 countries: A little too late?)

Nigerian Aviation Handling Company Plc (NAHCO), operates in the same sub-sector as SAHCO Plc – transport-related Services. NAHCO Plc’s share price is N2. The highest price for a unit of share in 52 weeks was N3.01 and the lowest is N1.90. A total of 8,162,828 units was sold in the last seven days trades. Shares outstanding is 1,624,218,750 units, and its market capitalisation is N3,248,437,500 billion.

With the surge in cargo revenues, SAHCO Plc recently received delivery of new Ground Support Equipment (GSE). This is expected to improve its ground power operations, in terms of cargo and passenger loading operations, as well as aircraft mobility. The newly acquired fleet of equipment consisted of 50 Cargo pallet dollies, 45 container dollies, 3 passengers step loaders, and 50 baggage tag machines. The company also recently introduced a branded Ankara uniform for its frontline operating staff. The MD of the company, Mr. Basil Agboarumi, noted that the reasoning behind the branded uniform is to showcase the Nigerian culture to the world.

Oil prices dragged lower at Monday’s trading session in Asia. Traders are deeply worried over rising COVID-19 cases upsetting hopes for a smooth recovery in energy demand, with both main oil benchmarks on track for their first monthly declines in multiple months after last week’s plunge.

What we know: Brent crude (LCOc1) dropped by 0.69%, to trade at $41.63 a barrel by 05.54 GMT after losing 2.9% last week.

West Texas Intermediate (CLc1) was down, trading at $39.44 a barrel, losing about 0.77%, following a 2.1% decline last week.

READ: NNPC says local operators must improve capacity to achieve low cost of oil production

Oil traders are concerned about the blurred demand outlook in the short term, as an unexpected build in oil production coupled with additional oil supplies by Libya, rattled the nerves of oil traders.

Still, OPEC Secretary-General, Mohammad Barkindo, disclosed yesterday that commercial oil inventories in OECD countries are expected to stand only slightly above the five-year average in the first quarter of 2021, before falling below that level for the rest of 2020.

READ: Gold prices suffer worst W/W decline since March

Stephen Innes, Chief Global Market Strategist at AxiCorp, in a note to Nairametrics, spoke on political macro weighing down on oil prices at the moment. He said:

“Reports that ministers in the UK are preparing to enforce ‘total’ social lockdown across many Northern Britain and London could cap prices this morning. Sure, this could be an ‘overreaction’ in an attempt to clamp down on further anti-lockdown protests after the massive anti demonstration at Trafalgar square on the weekend, which could eventually prove to be a Covid-19 hot spot.” 

READ: S&P 500 futures suffer longest run of losses since February

The surge in the Covid-19 onslaught, marked by record numbers of cases in Western Europe and the United States, prompted the strengthening of various countries’ COVID-19 restrictions which continue to weigh heavily on demand for gasoline.

There are now over 18,500,000 BTCs in circulation. A tweet, recently released by ChartBTC disclosed that the amount of BTC left is about 18.5 million.

This means that there is less than 2.5 million BTCs left, or about 11.9% of the total Bitcoin to be generated.

READ: Bullish Signs: 2.6 million Bitcoins are being held on crypto exchanges

The Bitcoin network has passed 18,500,000 BTC in circulation. Less than 2,500,000 left and half of those will be mined in the next 4 years. #bitcoin pic.twitter.com/0yPo57XIaR

— ChartsBTC (@ChartsBtc) September 27, 2020

Explore the Nairametrics Research Website for Economic and Financial Data 

As the issuance of new BTCs is halved every 4 years, the last BTC is not expected to be mined until 2140. No new Bitcoin can be mined after that year.

Recall that about three months ago, Nairametrics wrote on how Bitcoin was becoming difficult, as about 60% of BTCs in circulation (18.5 million BTCs) were held by business entities or individuals that had never sold more than 25% of BTCs that they had been holding as long-term investments.

READ: An all-time high 26,054,215 BTC wallets are smiling to the bank

What you need to know: Only 21 million BTCs are ever going to be produced in total, and presently, there are about 18.5 million BTCs in circulation. This shows a differential of about 2.5 million BTCs that are left to be produced.

Chainalysis, a crypto analytic firm, wrote a report explaining how most BTCs are held by those who treat it as digital gold, stating;

READ: BTC bounty: 69,000 Bitcoins worth $700 million waiting for you

“This digital gold is supported by an active trading market for those who prefer to buy and sell frequently. The 3.5 million Bitcoins used for trading supplies the market and in interaction with the level of demand, determines the price. With more people looking to trade Bitcoin, which is only becoming scarcer following the recent halving.”