Total Nigeria’s blowout HY 2021
Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.
Green White Green Last Week
Last week, the NGX closed on a positive note. The All-Share Index which measures the average performance of stocks gained 1.9%.
Some stocks usually do better or outperform the index, while other stocks do worse or underperform the index.
Cutix Plc was the best performing stock last week. It gained 32.51%, opening at ₦3.63 and closing at ₦4.81, up by ₦1.18.
Smart Products Nigeria Plc led last week’s losers, opening at ₦0.26, and closing at ₦0.16, down by ₦0.10 or 38.46%
A couple of firms released their earnings report last week. The most prominent of them were Total Nigeria Plc and BOC Gases Nigeria Plc.
Total Nigeria’s blowout HY 2021
Total Nigeria Plc released its Q2 and HY 2021 numbers. Q2 2021 means the 3-month period from April to June 2021. HY 2021 means the 6-month period January to June 2021.
We’ll take a look at the HY results, as it is more encompassing.
There was a massive increase in revenue and profit for the half-year period.
Revenue increased from ₦106.7 billion in 2020 to ₦151.3 billion in 2021, representing a 42% increase.
Profit before tax also increased to ₦11.8 billion in 2021, from a loss of ₦523.9 million in 2020.
Profit after tax went up by a massive 1,601% from a ₦537.2 million loss in 2020 to ₦8.1 billion in 2021.
Based on the positive results reported, the company’s board of directors announced an interim dividend payment of ₦4 on all its 339,521,837 ordinary shares.
Dividends refer to payments made to shareholders by a company. Interim dividends are usually paid before the company concludes its full year earnings.
The earnings report had a positive effect on the stock’s performance. Total Nigeria Plc stock closed the week as the second best performing stock on the NGX ASI. The stock ended the week at ₦203.2, a 21% increase from the previous week.
BOC Gases Nigeria Plc (Q2 2021)
BOC Gases released impressive results for its second quarter ended June 30, 2021.
Revenue increased by 20% from 1.5 billion in 2020, to 1.8 billion in 2021.
Profit before tax increased by 26% from 194.6 million in 2020 to 244.2 million in 2021.
Profit after tax also increased by 27% from 132.3 million in 2020 to 168.4 million in 2021.
Oando reaches a settlement with the Securities and Exchange Commission
Oando Plc has entered into a settlement with the Securities and Exchange Commission (SEC) based on the following terms amongst others:
1. Immediate withdrawal of all legal actions filed by the Company and all affected directors;
2. Payment of a monetary sum;
3. An undertaking by the Company to implement corporate governance improvements;
4. Submission by the Company of quarterly reports on its compliance with the terms of the Settlement Agreement; the Investments and Securities Act, 2007; the SEC Rules and Regulations; the National Code of Corporate Governance and the SEC Guidelines to the Code of Corporate Governance.
Oando neither accepted or denied any liability
The back and forth between SEC and Oando was triggered by a petition sent in 2017 to the regulator by two aggrieved shareholders—Dahiru Mangal and Gabriel Volpi—who accused the management of running the firm badly. (Oando would later reach a settlement with Dahiru Mangal, and he withdrew his petition.)
An investigation was conducted by SEC that found the company wanting. It then issued a couple of recommendations in 2019 including the removal of the company’s GMD Wale Tinubu and DMD Mofe Boyo, as well as the appointment of an interim management team.
Oando then went to court seeking an injunction restraining SEC from doing so. While this was on, the company was unable to conduct its Annual General Meeting (AGM), as SEC refused to give approval. As a result, Oando had not been able to release its audited financial statements, in the last few years.
Oando last released its results for the third quarter ended September 2019.
WEMA Bank Announces New Non-Executive Directors
The bank announced on Tuesday, July 20, the appointment of Prince Olusegun Adesegun and Mr. Adeyemi Adefarakan as Non-Executive Directors effective from July 19, 2021.
FCMB Group Plc
On Friday, July 23, the board of directors of FCMB Group Plc held a meeting to approve the Group’s financial statements for the second quarter ended June 30. The Board promises to publish the financial statements sometime during the week. During the meeting, Gbolahan was appointed as an Executive Director on the board of the company.
Omatek Ventures Plc
The board of directors of Omatek Ventures Plc held a meeting on Monday, July 19, to approve the company’s financial statements. The Board promises to publish the results for the second quarter ended July 30, 2021 sometime during the week.
Green White Green This Week
A couple of firms will be holding board meetings during the week. They include Fidson Healthcare Plc, AIICO Insurance Plc and SAHCO Plc. The board of directors have to meet to approve any financial statements before they are released.
Airtel Africa Plc, Dangote Cement Plc, Nestle Plc Nigeria and a couple of other firms are set to release their earnings report this week.
