Japaul Oil and Maritime Services Plc has witnessed significantly large trading volumes and price appreciation in the last trading week.  

The stock gained a whopping 40%, opening at N0.20 and closing at N0.28, up N0.08.  

It also traded significantly large volumes last week. 69 million shares were traded on April 23, 2019which was the first trading day of last week. 92.3 million shares were then traded the following day. On April 25, 94.4 million shares were traded, and on April 26, which was the last trading day of the week, 56.5 million shares were traded.  

The trend seems to have continued this week, as the stock gained 7.14%. opening at N0.28 and closing at N0.30, up N0.02 or 7.14%. 60.4 million shares were traded.  

Poor fundamentals 

The heavy trades may be indicative of insider trading, as the company’s poor fundamentals have largely put retail investors off the stock. 

Results for the financial year ended December 2018 show that revenue fell from N1.9 billion in 2017 to N936 million in 2018. Losses, though lower year on year, remain dire. The firm made a loss after tax of N6.5 billion in 2018as against a loss after tax of N13.2 billion recorded in 2017.  

The company’s auditors, PKFhave flagged the firm’s going concern assessment as a key audit matter.  

The group’s shareholder funds have been eroded to the tune of N34.6 billion, as at 31st December 2018. These have culminated from past operating losses in the last four years.

Total indebtedness stood at N58.35 billion as at the 31st of December 2018 with a gearing ratio of 169:1

Aborted fund raise  

The company in May last year pulled out of a  $350 million equity financing facility with Milost Global Inc. 

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In a statement signed by its Acting Managing Director, Akin Oladapothe company noted that in view of the several red flags associated with the planned equity injection, the company had decided to pull out of the deal. 

 About the firm  

Japaul Oil & Maritime Services Plc was incorporated on 29 June1994 as a private limited liability company and commenced business in January 1997. Japaul Oil is in the business of oil and maritime services. The company’s shares were listed on the Nigerian Stock Exchange (NSE). 

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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

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