Stock Market
Japaul Oil & Maritime Services plans to invest in gold mining
The company’s name will be changed from Japaul Oil & Maritime Services to Japaul Gold and Ventures Plc.
Japaul Oil & Maritime Services has announced its plan to change the name of the company to Japaul Gold and Ventures Plc in a bid to delve in mining and technology business activities.
This was disclosed in a notice, which was signed by the Company Secretary, Micheal Edeko, and sent to the Nigerian Stock Exchange (NSE). According to the notice, Japaul intends to seek investors’ consent to raise additional equity capital up to N27 billion whether by way of Right Issue, Public Offer or Private Placement.
It stated, “We intend to seek the approval of our shareholders to increase the authorised share capital from 6 billion to 60 billion ordinary and/or Preference shares and carry out share reconstruction.
“The Directors be, and are hereby authorised to do all things necessary and incidental to the achievement and fulfilment of the above special resolutions including amending the Memorandum and Articles of Association of the company.”
READ ALSO: How to Profit from Directors’ Share Dealing Notifications
According to the notice, the company’s 15th AGM would hold at the Japaul Corporate Head office, Ikeja, Lagos on July 29th, 2020. The consolidated statement of financial position of the company, as of December 31, 2019, would be presented to the shareholders at the virtual meeting.
What it means: If Japaul succeeds in increasing its share capital from 6 billion to 60 billion, it means bad and good news for investors. It could be bad because it represents the issuance of additional shares, which dilute the value of investors’ existing shares.
The good news is that additional share may benefit investors in the form of increased returns on equity, through capital gains, higher dividend payouts.
READ ALSO: Japaul Oil and Maritime’s share price is gaining momentum
Share reconstruction: Share Reconstruction otherwise known as a reverse stock split is a process whereby a company reduces the total number of outstanding shares it has by cancelling out shares it does not need.
How it may affect investors: While some argue that share reconstruction does not affect the value of investors’ shares in a company, others insist that the exercise can turn to a nightmare for shareholders. The market may feel the fundamentals of the company is so weak they do not even apply any sentimental value towards the share reconstruction.
For instance, if Japaul share price changed from 23kobo, as at June 19, 2020, to 46kobo after a scheme of Share Reconstruction, the market may still feel the value the company is worthless and price it less. Therefore the company can drop below 46kobo or lower than the 23kobo it was trading before the reverse split.
READ ALSO: Binance, Bitfinex, Coinbase, Huobi receive about 40% of all BTCs
Meanwhile, the results of the company for the financial year ended in December 2018 showed 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 2018, as against a loss after tax of N13.2 billion recorded in 2017.
The company’s auditors, PKF, have flagged the firm’s growing 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.
The share price of Japaul Oil & Maritime Services closed at N0.23 on Friday, June 19, 2020. While its price earning ratio stands at 0.04, the earning per share and price to book ratio stands at 6.53 and 0.2421 respectively.
Market Views
Nike stocks post gains, women’s apparel division grow by 200%
Nike has used the COVID-19 pandemic as leverage to expand its digital business as it reported a surge in its in online sales.
Nike, the most valuable fashion brand in the sports business, saw its stock price rising on Tuesday, as the company reported an 82% surge in online sales and offered an impressive outlook that calls for demand to grow through the holidays.
Nike has used the COVID-19 pandemic as leverage to expand its digital business, and its women’s apparel division grew by nearly 200%. Parents stocked up on back-to-school items, and its business picked up in key markets like China.
READ: Flour Mills and its diverse challenges
Highlights of the results
First-quarter reported revenues were $10.6 billion, down 1 percent on a reported basis, and flat to the prior year on a currency-neutral basis.
Nike’s direct sales were $3.7 billion, up 12 percent on a reported basis, and up 13 percent on a currency-neutral basis, with growth across all geographies.
Brand digital sales increased 82 percent, or 83 percent on a currency-neutral basis, with double-digit increases across North America, Greater China, and APLA and triple-digit growth in EMEA.
READ: Unmarked hotels and short-stay apartments report high occupancy rates during COVID-19
Diluted earnings per share for the quarter was $0.95, up 10 percent. Inventory rose 15 percent versus the prior year, but decreased 9 percent versus the prior quarter.
“Our results this quarter continue to demonstrate NIKE’s full competitive advantage, as we strengthen our position in the midst of disruption,” said John Donahoe, President, and CEO, Nike, Inc.
READ: UPDATED: Nigeria received $1.29 billion capital inflows in Q2 2020, down by 78.6%
“In this dynamic environment, no one can match our pace of launching innovative products and our Brand’s deep connection to consumers. These strengths, coupled with our digital acceleration, are unlocking NIKE’s long-term market potential.”
COVID-19 pandemic is also helping Nike’s digital potential. The company disclosed that its digital sales now make up at least 30% of its total quarterly sales, a threshold that Nike had previously aimed to hit in three years’ time.
“Nike is recovering faster based on accelerating brand momentum and digital growth,” CFO Matt Friend stated on Tuesday.
Full details of the results can be found here
Stock Market
MTN Nigeria records gain, investors profit up by N42 billion
REDSTAREX led 9 Gainers as against 17 Losers topped by UBN at the end of today’s session.
Stock Market
Nigerian Stocks immune to high sell-offs recorded in Global Stock Market
UACN led 9 Gainers as against 16 Losers topped by CHAMPION at the end of today’s session.
FG issues guidelines to access N75 billion MSME survival funds
Emerging concerns on crude oil price dents economic recovery
Fintech key to insurance penetration, processing of claims – LASACO MD
Tony Elumelu named in “Time 100” list of the 100 Most Influential People in the World 2020
Daily Parallel Market Exchange Rate – ₦460/$1
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦460/$1
NLC insists nationwide strike, protest to go ahead from September 28
Ripple’s chairman transfers 500,000,000 XRP
CBN gives up on its policy of attracting dollars
Anonymous
June 22, 2020 at 7:38 pm
I need information how to contact japaul oil and maritime company please.since year 2000 I haven’t been paid my dividends for shares.