capital market
Presco shareholders approve N24.3bn final dividends for 2023
…Total dividend yields hit 13.6%
Shareholders at the 31st Annual General Meeting (AGM) of Presco Plc, approved a final dividend of N24.30 per ordinary share of 50 Kobo, totaling N24.3 billion, as recommended by the Board of Directors for the financial year ended December 31, 2023.
This is in addition to an interim dividend of N2.00 per 50 kobo share, amounting to N2 billion. Consequently, the total dividend for the year amounts to N26.30 per share, aggregating N26.3 billion.
With a total dividend of N26.30 for FY 2023, Presco posted a dividend yield of 13.6 percent, making it one of the most profitable stocks in the NGX.
During the AGM on Thursday, shareholders also authorised the company to raise additional capital through debt finance, equity raising, or a combination of both, as deemed appropriate by the Directors.
Furthermore, the shareholders empowered the Directors to invest indirectly or through its subsidiary and to acquire assets or a majority of shares in companies or entities operating within the same industry as Presco Plc.
In line with this move, Presco already announced its decision to acquire a 100 percent stake in fellow subsidiary of SIAT SA, the Ghana Oil Palm Development Company.
Addressing Shareholders, the Chairman of the company, Mr Rasheed Sarumi explained that the Board is firmly committed to maintaining the highest standards of corporate governance in line with best practice.
He noted that during the year, Grant Thornton Consultants, an international corporate consultant, repeated the annual Board Assessment and reviewed the Company’s corporate governance policies and procedures to monitor compliance.
According to the Chairman, their report forms part of the annual report and accounts as required by the Securities and Exchange Commission (SEC) Code and the 2018 National Code of Corporate Governance Practice.
The chairman assured the shareholders that Presco Plc is committed to leveraging the abundant business opportunities present within Nigeria and the ECOWAS sub-region to realise its strategic growth ambitions for the benefit of all stakeholders.
He said, “We will continue to strive for operational excellence, pursue substantial growth, and uphold the highest standards of corporate governance.”
Also speaking at the event, Managing Director/ Chief Executive Officer, Mr. Felix Nwabuko, assured shareholders and stakeholders of a rewarding future.
The Company’s Revenue grew by 26.4 percent, from N81.03 billion in 2022 to N102.42 billion in 2023, while Gross Profit grew by 30.13 percent to N65.03 billion.
Profit before tax witnessed an uptick of 152 percent, amounting to N50.01 billion from N19.81 billion recorded in the previous year, and Profit After Tax reached N32.86 billion, marking an increase of 152 percent from the previous year. The firm’s finance costs declined to N8.41 billion from N8.49 billion during the period reviewed.
Presco’s selling and distribution expenses declined to N1.55 billion from N1.79 billion and administrative expenses increased to N20.9 billion from N20.4 billion. Earnings per share rose to N30.42 from N13.03.
Presco closed the trading on Friday, June 7, 2024, at N293.90 per share on the Nigerian Exchange (NGX). The company began the year with a share price of N193.00 and has since gained 52.3 percent this year.
By Ifeoluwakitan Afolabi
Shareholders of Total Nigeria Plc have praised the company for its consistent dividend payment despite the challenging operating environment.
At the company’s Pre-Annual General Meeting (AGM) held in Lagos, stakeholders commended Total’s entrenched safety culture, innovation, and good corporate governance for its impressive performance.
Mrs. Ifeyinwa Chinwe, a stakeholder, attributed the company’s success to its commitment to excellence and urged the government to create a more business-friendly environment to encourage companies like Total to thrive.
She also emphasised the importance of individual actions in promoting sustainability, encouraging everyone to adopt eco-friendly practices like recycling, conserving energy, and reducing plastic use.
The shareholders’ appreciation and Mrs. Chinwe’s call to action highlight the importance of collaboration between businesses and individuals in driving growth and sustainability in Nigeria.
Addressing the shareholders, the chairman Mr Jean-Phillipe Torres said he was glad to meet everyone once again, especially the fact that he’s back to Nigeria and that Nigeria has become a place where he could call home.
He encouraged everyone to please do better and ensure they are doing the right thing at the right time.
“In 2023, TotalEnergies reported a turnover of $281.7 billion. For 2024, their Q1 2024 results indicate a slight increase in turnover compared to Q1 2023, reflecting higher energy prices and increased production,” he said.
The equities market resumed from the Eid-El-Kabir holiday with investors losing N47 billion at the end of trading session on Wednesday.
This followed a dip in the share price of stocks like Caverton, ABC Transport, and NB amongst others on the trading floor today.
After five hours of trading at the capital market, the equity capitalisation crashed to N56.4 trillion from N56.5 trillion posted by the bourse on Friday.
Similarly, the All-Share Index (ASI) decreased to 99,840.95 from 99,925.29 recorded the previous trading day.
The market breadth was positive as 40 stocks advanced, 15 declined, while 70 others remained unchanged in 9, 899 deals.
UPL, Guinness, and Champion led other gainers with 10 percent, 9.96 percent, and 9.83 percent growth in share price to close at N2.75, N66.25, and N3.24 from the previous N2.50, N60.25, and N2.95 per share.
On the flip side, Caverton, ABC Transport, and NB led other price decliners as they shed 9.62 percent, 9.52 percent, and 8.37 percent each to close at N1.41, N0.57, and N29.00 from the initial N1.56, N0.63, and N31.65 per share.
Veritaskap traded 55.731 million shares valued at N443 million in 103 deals.
On the value index, Fidelity Bank recorded the highest value for the day trading stocks worth N11.3 billion in 466 deals followed by Geregu which traded equities worth N1.09 billion in 61 deals.
MTN Nigeria traded stocks worth N596 million in 454 deals.
The naira, Nigeria’s currency on Wednesday traded flat at N1,490 on the parallel market, popularly called the black market, following improved dollar liquidity in the foreign exchange (FX) market.
When compared to last week’s rate of N1,495, the naira recorded a marginal gain of 0.33 percent per dollar on the black market.
A total of $5.95 billion from the World Bank and Afreximbank entered into the Nigerian economy, helping to strengthen Nigeria’s external reserves and the naira.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed flat on Friday, gaining marginally by 0.06 percent as the dollar was quoted at N1,482.72 on Friday as against N1,483.62 closed on June 10, 2024, according to the data obtained from the FMDQ Securities Exchange Limited.
The dollar supply by willing buyers and willing sellers increased by 13.47 percent to $183.47 million on Friday, June 15, 2024 from $161.69 million as of June 10, 2024, according to data from the FMDQ Securities Exchange Limited.
Nigeria‘s foreign currency reserves have risen by 2.19 percent month-on-month, following streams of dollar inflows from international financial institutions.
Data from the Central Bank of Nigeria (CBN) revealed that external reserves grew to $33.159 billion as of June 11, 2024 from $32.447 billion in May 10, 2024.
Alia promises to revive Taraku Mills, boosts constituency’s economy
13 years after, no pension scheme, staff exit policy–Bauchi varsity lecturers lament
