Okomu Oil Plc 2016 Financial Summary
Principal Activities
The principal activities of the company are the cultivation
of oil palm, processing of fresh fruit bunches into crude palm oil for resale,
rubber plantation and processing of rubber lumps to rubber cake for export.
39 investors accounted for 84.28% of total shares
outstanding out of which Socfinaf S.A incorporated in Luxemborg has 62.69%.
| 12 Months OKOMU OIL PLC | ||||
| 2016 N'000 |
2015 N'000 |
change | Year End | |
| Revenue | 14,364,736 | 9,730,015 | 48% | December |
| Profit/Loss before taxation | 5,906,453 | 2,898,645 | 104% | |
| Profit/Loss for the period | 4,910,273 | 2,659,607 | 85% | |
| Issued Shares (Units) | 953,910,000 | 953,910,000 | ||
| Basic Earnings Per Shares (Kobo) | 5.15 | 2.79 | 85% | |
| Last total dividend paid (Kobo) | 150.00 | 10.00 | 1400% |
Quarter on Quarter performance
Revenue PAT
N'000 N'000
Q1: #3,325,923 Q1: #1,595,933
Q2: #4,219,130 Q2: #1,999,142
Q3: #3,366,657 Q3: #580,526
Q4: #3,433,353 Q4: #734,672
A closer look at the results shows that Finance cost increased by 369.86% from #429miiliom in 2015 to #2.01billion in 2016 this is due to the 10million Euros loan from Socfinaf S.A and #2billion commercial agriculture loan from Zenith Bank drawn down in 2016.
A closer look at the results shows that Finance cost increased by 369.86% from #429miiliom in 2015 to #2.01billion in 2016 this is due to the 10million Euros loan from Socfinaf S.A and #2billion commercial agriculture loan from Zenith Bank drawn down in 2016.
Revenue increased by 48% from #9.7billion in 2015 to #14.3billion
in 2016. This was as a result of palm oil products sales that increased by
57.17% from #7.7billion in 2015 to #12.1 in 2016. It is interesting to know
that the whole revenue from palm oil products was internally generated.
The palm oil product remains the most profitable
with a profit contribution of #4.0billion to the total profit of #4.9billion
declared by the company for the financial year end 2016.
The company also benefited from the devaluation of Naira,
this was reflected in its foreign exchange gains that increased by 164.06% from
#43millin in 2015 to #113.8million in 2016.
The cash balance increased astronomically by 253.19% against what it was in 2015. This was as a
result of N2.4billion fixed deposits with local banks with weighted average
interest rate of 15%-17% for a tenor of between (21- 90days).
It appears the Company is saving for raining days the reason
for the retention of #2.2billion in its book. This is evidence in its planned
repayment of loan from SOCFINAF S.A. A total
of 10million Euro loan agreement was reached with SOCFINAF S.A in 2015 to
finance capital investment in its extension and working capital at an annual
coupon rate of 8% per annum. The repayment period was for five years. Although
the company received the final instalment on the loan in January 2016 and repayment
was to commence in December 1st 2017 in five equal instalments of 2 million Euros.
It is interesting to know that the company started repayment earlier than
schedule in February 2016.
With the Current government policy on agriculture and the investment of the company in recent times. I belief Okomu Oil price should receive positive sentiment from the Market.
It would face its first trading test today 7th April, 2017. I belief it would come out positive. A dividend of #1.50k with a yield of 2.86% although below the Market average but the future prospect will sustain the price.
Corporate Action
Proposed Dividend: 150kobo per Share
Proposed Bonus : Nil
Qualification Date :
AGM Date:
Payment Date:
AGM Venue:
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