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CORPORATE ACTIONS: An Early Call and A Lost Case

@letsfeelfree listing was the highpoint of corporate actions that took place on the @nsecontact this week

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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. 

Here is a review of corporate actions that took place last week, and those expected this week.

Corporate Actions that took place last week

A red listing

Airtel Africa was listed on Tuesday, July 9, 2019. The listing was earlier scheduled for Friday July 5, 2019 but got postponed.

3.7 billion shares were listed at N363 per share. Airtel Africa is the first dually listed telco on the Nigerian Stock Exchange, and the third biggest company on the exchange by market capitalization.
The stock has however performed poorly since listing, and closed down 10.88%, ending Friday’s session at N323.50.

Rumours Addressed

Access Bank Plc and Union Bank Plc both denied rumours that there were plans by the former to acquire the tier two lender.

Seplat capital market day

Seplat Petroleum Development Company Plc, had a ‘Facts Behind the Figures’ session for analysts and investors. The session was focused on the Assa North and Ohaji South (“ANOH”) gas project.

Clearing the stables

Shareholders of Trans Nationwide Express Plc seem to be fed up with the company’s poor performance, as they sacked three of the company’s non Executive Directors: Alhaji Umaru Jimada, Mrs Aderonke Fatade and Mrs Nneka Ikejiani. This took place at the firm’s Annual General Meeting (AGM) which was held last week.

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Another non Executive Director, Ms Oluwatoyin Adebayo, subsequently resigned effective Friday.

A Lost Case 

Stanbic IBTC Bank (a subsidiary of Stanbic IBTC Holdings which is the listed entity) provided an update pertaining to a 10 year legal tussle which was concluded at the Supreme Court. The bank paid a judgement sum of N2.5 billion to Longterm Global Capital Limited & Mr. Patrick Akinkuotu,
A full provision for this judgment was made in 2013, and as such, the payment of the judgment sum will have no impact on the bank’s current liquidity position and profitability.

An early call

Ecobank Trans International announced the redemption of a $250 million Eurobond by its Nigerian subsidiary, Ecobank Nigeria. The bond, which was issued in August 2014, will be redeemed in August 2019, two years ahead of its 2021 maturity. Accrued interest will be paid.

A new Chairman

University Press Plc announced the resignation of Dr Lekan Are, its Chairman, effective July 31, 2019. Obafunso Ogunkeye, a sitting non Executive Director has been appointed Chairman effective August 1, 2019. Olayinka Lawal has also been appointed as a non Executive Director effective August 1, 2019.

Two vacant spots

Notore Chemical Industries Plc announced the resignation of two non Executive Directors, Oluwaseyi Owodunni and Olusoji Emiola.

Stanbic 728 x 90

Omatek wakes up

Omatek Plc sent a notice last week, informing the NSE and the investing public that a board meeting would hold on July 18, 2019. Issues to be discussed at the meeting include the approval of the firm’s 2017 and 2018 audited financial statements, as well as issues relating to the regularization of the company’s listing status.

Markdowns

Presco Plc was marked down by N2 and its ex dividend price was N44.80. NPF Microfinance Bank Plc was marked down by N0.05, and its ex dividend price was N1.08. NAHCO Aviance Plc was marked down by N0.25, and its ex dividend price was N2.95.
A mark down is the subtraction of a declared dividend from a company’s share price.

Results released

LASACO Assurance FY 2018

Lasaco Assurance Plc released its results for the 2018 financial year. Gross premium written increased by 35% from N6.6 billion in 2017 to N9 billion in 2018. Underwriting income went up by 39% from N3.9 billion in 2017 to N5.2 billion in 2018.

Profit before tax increased by 12% from N854 million in 2017 to N958 million in 2018. Profit after tax was up 11% year on year from N661 million in 2017 to N736 million in 2018.

The company declared a dividend of 5 kobo per share.

SAHCO Plc FY 2018 and Q1 2019

SAHCO Plc released its results for the 2018 financial year and first quarter ended March 2019.

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For the 2018 financial year, revenue increased by 24.4% from N4.9 billion in 2017 to N6.1 billion in 2018. The firm made a loss before tax of N302 million in 2018, as against a profit before tax of N125 million made in 2017. Loss for the year stood at N665 million, as against a profit after tax of N217 million made in 2017.

For the first quarter ended March 2019, revenue increased from N1.3 billion in 2018 to N1.9 billion in 2019. Profit before tax surged 1284% from N22.6 million in 2018 to N313 million in 2019. Profit after tax stood at N313 million, as against a N25.3 million loss recorded in 2018.

Flour Mills Nigeria FY 2018/2019

Flour Mills of Nigeria Plc released its results for the financial year ended March 2019, after trading hours. Revenue dipped slightly by 2.84% from N542 billion in 2018 to N527 billion in 2019.

Profit before minimum tax fell by 38.7% from N16.5 billion in 2018 to N10.1 billion in 2019. Profit after tax also dropped sharply by 66.1% from N13.6 billion in 2018 to N4 billion in 2019.

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The company however increased its dividend payout by 20% from N1 to N1.20. Earnings per share for the 2019 financial year was N1, indicating that the firm may have dipped into its retained earnings in a bid to increase its dividend payout.

Conoil Q1 2019

Conoil Plc released its results for the first quarter ended March, 2019. Revenue increased from N31.3 billion in 2018 to N35.6 billion in 2019. Profit before tax rose by 53.9% from N310 million in 2018, to N478 million in 2019. Profit after tax also rose by 53.9% from N211 million in 2018 to N325 million in 2019.

Austin Laz and Company Plc HY 2019

Austin Laz and Company Plc released its results for the half year ended June 2019. Revenue increased from N191 million in 2018 to N205 million in 2019. The firm made a profit before tax of N10.7 million in 2019, as against a N24 million loss recorded in the comparative period of 2018. Profit after tax stood at N10.6 million, as against a N24.8 million loss recorded in 2019.

Corporate Actions for this week

Abbey Mortgage Bank Plc and Tourist Company of Nigeria Plc will be holding their Annual General Meetings on the 15th and 18th of July 2019 respectively.

Red Star Express Plc will be closing its shareholders register from 17 to 19 July, 2019. Qualification date for the dividend payment is July 18, 2019.

Lafarge Africa Plc will hold a ‘Facts behind the Figures’ presentation event at the Nigerian Stock Exchange on July 18, 2019.

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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Business

#DigitalSkillsTraining: FG announces conclusion of selection process

Only successful applicants that are contacted by the Ministry are to report at the training venue.

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President Buhari to address Nigerians on Lekki toll plaza shootings after investigation , Youth Investment Fund:  Ministry of Finance and CBN to launch provision of funds- Minister, Federal Ministry of Youth and Sports launch DEEL initiative

The Federal Government through the Ministry of Youth and Sports disclosed that the selection process for the upcoming Digital Skills Training has been concluded for the #DigitalSkillsTraining from April 11th to 30th, 2021.

This was disclosed in a statement by the Ministry of Youth and Sport on Sunday evening.

“The Federal Ministry of Youth and Sports Development wishes to inform the general public and all Nigerian Youths that the selection process has been concluded for successful applicants for the #DigitalSkillsTraining scheduled for April 11 to 30, 2021,” the statement said.

The Ministry added that only successful applicants that were contacted by the Ministry are to report at the training venue. Those who were not successful but arrive at the training would not be admitted.

Upcoming #DigitalSkillsTraining Programmes of the Ministry will be widely publicized on youthandsport.gov.ng , on : noya.ng and on the Ministry’s social media handles,” the statement added.

What you should know 

Recall that Nairametrics reported in November 2020, that the Ministry of Youths and Sports Development announced it will scale up its digital skills training to cover 500,000 youths across the country after securing funding under the COVID-19 stimulus budget.

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Currencies

Naira appreciates at NAFEX as Nigeria’s external reserve is set to get a boost

Naira gained against the US Dollar at the NAFEX window on Friday to close at N409/$1.

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Naira falls across forex markets as businesses resume after public holidays

Friday, 9th April 2021: The exchange rate between Naira and the US Dollar closed at N409/1$ in the Importers and Exporters window, where forex is traded officially.

Naira gained against the US Dollar at the NAFEX window on Friday to close at N409/$1. This represents a 0.16% gain when compared to N409.65/$1 recorded on Thursday, as the country’s external reserve is set to receive a boost with the planned issuance of $500 million Eurobonds.

Meanwhile, the naira maintained stability at the parallel market on Friday, 9th April, 2021 to close at N485 to a dollar, the same rate as maintained since last week.

Trading at the official NAFEX window

Naira appreciated against the US Dollar at the Investors and Exporters window on Friday to close at N409 to a dollar. This represents a 65 kobo gain when compared to N409.65/$1 recorded on Thursday, 8th April 2021.

  • The opening indicative rate closed at N409.79 to a dollar on Friday. This represents a 71 kobo gain when compared to N410.50/$1 recorded on Thursday.
  • Also, an exchange rate of N420 to a dollar was the highest rate recorded during intra-day trading before it closed at N409/$1. It also sold for as low as N395/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped by 41.1% on Friday, 9th April 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover declined from $93.69 million recorded on Thursday, April 8, 2021, to $55.21 million on Friday, April 9, 2021.

Cryptocurrency watch

The world’s most popular digital currency, bitcoin recorded a 3.05% increase in value on Saturday evening, 10th April 2021.

  • Bitcoin went up by 3.05% to trade at $59,907 on Saturday evening, compared to $58,135 recorded at the close of trade on Friday.
  • This is coming after it had risen to $61,222.22 on Saturday, its highest in nearly a month, propelled by talks of constrained new supplies against evidence of wider adoption.
  • Bitcoin (BTC) is up 116% from the year’s low of $27,734 on January 4. It crossed the $60,000 mark for the first time on March 13, hitting a record $61,781.83 on Bitstamp exchange, just after U.S. President Joe Biden signed his $1.9 trillion fiscal stimulus package into law.
  • The digital currency has been widely adopted by many, replacing gold as the global digital-reserve asset.

Oil price gain

Brent crude oil price declined on Sunday evening as it closed at $63.02 per barrel, indicating a 0.28% drop compared to $63.2 recorded at the close of trade on Friday.

  • This is as the fall in oil prices especially towards the end of last week can be attributed to demand concerns and Covid-19 lockdowns in some major economies, due to a spike in infections.
  • The Russian government has said that the coronavirus pandemic could continue to impact on global oil demand until 2024.
  • Crude oil prices had recorded a marginal increase during the week despite the decision of the OPEC+ to ease production cuts in the coming months. However, US Shale Giant has commended the OPEC+ group for bringing supply and demand back to balance.
  • Brent Crude closed at $63.02 (+0.11%), WTI Crude closed at $59.39 indicating 0.12% gain, Bonny Light, $61.55 (+0.46%), OPEC Basket (+0.89%) to close at $61.22 while Natural gas gained 0.67% to close at $2.543.

External reserve

Nigeria’s external reserve gained $29 million on Thursday, 8th April 2021 to close at $35.006 billion, being the highest external reserve position recorded in over a month.

  • This indicates a 0.08% increase when compared to $34.977 billion recorded on Wednesday, 7th April 2021.
  • It also represents an increase in the country’s external reserve position for the 13th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $590 million in 13 days.
  • This recent increase in Nigeria’s external reserve could however be attributed to the increase in crude oil prices recorded earlier in March before the recent bearish trade in the crude market.
  • It could be attributed to the possible increase in diaspora remittance as the CBN offers incentives for every unit of a dollar received in Nigeria from diaspora remittance.
  • The external reserve is likely to get further boost as the Federal Government recently announced plans to issue $500 million Eurobonds for 2021.

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