capital market
NGX GROUP announces 16.3% decline in revenue to N3.2bn
By Philemon Adedeji
Nigerian Exchange Group Plc (‘NGX Group’ or ‘The Group’) announced its unaudited results for the half year ended 30th June 2023, announcing 16.3 per cent declined in profit to N3.2 billion at the end of June 30th, 2023 from N3.82 billion reported in the comparable period of 2022
The decline in revenue was driven by 14.6 per cent decline in treasury investment income (27.1 per cent of revenue) to N869 million in June 2023 relative to N1,017.4 million in the comparative period in 2022 primarily driven by a comparative reduction in our treasury holdings year over year.
Gross earnings recorded a decrease of 12.5 per cent to N3.70 billion from N4.22 billion as of June 2022, while other income increased by 24.9 per cent to N490 million from N393 million in the same period.
Profit before income tax (PBT) declined by 40.6 per cent to N726 million in June 2023 from N1,223.2 million in the corresponding period in 2022 due to a reduction in the top line YoY.
Profit after income tax ( PAT) declined by 45.9 per cent to N444.1 million from N820.2 million. This also resulted in a decline in profit after-tax margin to 12.03 per cent from 19.45 per cent recorded in June 2022.
Total assets decreased by 3.7 per cent to N54.94 billion from N57.06 billion in December 2022, driven primarily by a 33.1 per cent decline in Trade and other receivables to N712.86 million from N1,065 million in December 2022, and moderated by a 5.31 per cent growth in Cash and Cash equivalent to N5 billion from N4.75 billion in Dec. 2022.
Total liabilities saw a 12.3 per cent reduction, falling from N20.3 billion in December 2022 to N17.8 billion. This decrease was primarily due to the repayment of a term loan that was used to finance investments in selected associates.
Commenting on the results, the Group Managing Director/Chief Executive Officer, Mr.Oscar N. Onyema (OON) said, “While our half-year financial results for 2023 may reflect the impact of economic headwinds, NGX Group demonstrated resilience by recording a profit before tax of N0.7 billion.
“We are optimistic that with market friendly pronouncements already made by the new government, trading and listing activities will continue the positive impact experienced in June 2023.
“Consistent with our strategic objective to maximise shareholder value, the Board of Directors has consented to an interim dividend of N0.25 Kobo per ordinary share of 50 Kobo. This translates to a total payout of N495,532,893 (Four Hundred and ninety-five million, five hundred and thirty-two thousand, eight hundred and ninety-three Naira).
“This initiative underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary. It also emphasises our continued commitment to working collaboratively with our shareholders and other stakeholders in creating and distributing value, even in challenging market conditions.”
Investors on Tuesday recouped losess from Monday’s trading gaining N25.72bn.
The market gain was fueled by strategic buying interests in NAHCO (+3.74%), FIDSON (+9.26%), ZENITHBANK (+2.59%), UBA (+2.25%), GTCO (+1.88%), NB (+0.34%), UCAP (+0.18%), and 16 others.
Consequently, investors gained N25.72bn, bringing the Market Capitalisation to N56.61trn, with a year-to-date return of 33.83%.
Meanwhile, the All-Share Index (NGXASI) gained 0.05 percent to close at 100,067.77 points, up from a 0.04 percent loss at 100,020.83 the previous day.
The total volume traded advanced by 33.11% to close at 365.64m, valued at N4.12bn and traded in 8,665 deals. UNIVINSURE was the most traded stock by volume, with N61.53m units traded, while UCAP was the most traded stock by value at N711.31m.
The Gote index declined 0.10 percent to close at 343.77 points, the Toni index rose 0.06% to close at 1,287.04 points, while the Samad index closed flat at 364.34 points.
Conoil Plc has declared A profit after tax of N9.87 billion in 2023 financial year, about 99 percent growth from N4.96 billion declared in 2022.
According to the company’s audited financial statement for 2023, the company posted a revenue of N201.4 billion, marking a 53per cent growth from the N131.4 billion revenue posted in 2022.
The company posted a gross profit of N19.8 billion, representing a 42per cent growth from the N14 billion gross profit posted in 2022.
There was however a slight decline in the gross margin, from 10.66 percent as of FY 2022 to 9.85 percent as at 2023.
The company also proposes to pay dividends of N3.5 per share, amounting to a dividend payout of N2.43 billion.
According to the audted statements, the oil company derived 97 percent of its revenue, amounting to N195 billion, from the sale of white petroleum products, including PMS, diesel, low-pour fuel oil, jet fuel, and kerosene, with the remaining 3 percent coming from lubricant sales.
The company’s petroleum purchases in 2023 increased by 68 percent from the previous year, rising from N109.4 billion in 2022 to N183.8 billion.
The company also generated N1.54 billion in FX gains during the fiscal year.
A review of the company’s balance sheet shows a 29per cent increase in trade and other receivables to N65.6 billion from N51 billion as of 2022. Part of the trade receivables include N34.3 billion from some of its trade debtors.
During the year, the company’s borrowings through overdraft hit N32 billion marking a 461% increase from the N5.7 billion overdrafts as of FYE 2022. According to the financial statement, the average interest rate on bank overdrafts in 2023 was 19per cent, in contrast with 14.7per cent in 2022.
It was also noted that the overdrafts were necessitated by a delay in outstanding subsidy claims from the Federal Government.
The Federal Government of Nigeria (FGN), through the Debt Management Office (DMO) has opened the sale of its Savings Bond to retail investors with a lower return than last four months auctions.
The offer which opened Monday July 1, closes on July 5 and the settlement date is July 10, 2024.
The government sells a two-year savings bond at 16.67 percent per annum, lower than the 17.41 percent it went for in June 2024.
The three-year bond sells at 17.67 percent, also lower than the 18.41 percent it was sold for in June 2024.
These are the lowest returns offered on FGN savings bonds since March 2024.
The interest payment will be paid quarterly with coupon payment dates on October 10, January 10, April 10, and July 10.
The 2-yr Savings Bond would be due on July 10, 2026, while the 3-yr Savings Bond would be due on July 10, 2027.
In March 2024, the government sold a two-year savings bond at 17.04 percent per annum, which is higher than the returns offered this month by 2.17 percent.
The three-year bond in March 2024 was also sold at 18.04 percent, higher than the offer for July 2024 by 2 percent.
According to the Debt Management Office (DMO), the minimum amount that can be invested in the Savings Bond is N5,000 while a maximum of N50 million can be invested.
The Debt Management Office also noted that interested investors should contact appointed stock-broking firms provided by the DMO.
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