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22 banks, others record N89bn drop in profit

22 banks, others record N89bn drop in profit

Aug 6, 2020 - Legal News by

At least 22 listed companies on the Nigeria Stock Exchange (NSE) recorded a drop in their Profit After Tax (PAT) by N89 billion in the first six months of 2020, Daily Trust exclusively reports. The profit figure dropped from N457.6bn in 2019 to N368.3bn, translating to 19.5 percent decline rate.
NNPC rakes in N2.3tn from petroleum sales in 1yr Scrapping PEF could push fuel products to N400 a litre, warns IPMAN The Federal government lockdown directives to contain the spread of Coronavirus  led to the shutdown of many businesses, sparing only businesses proffering essential services. The affected companies performed creditably well grossing N2.118 trillion, higher by N10bn (0.5%) compared to N2.128tn recorded in same period of 2019. The companies include: MTN Nigeria, Dangote Cement, Nestle, FBNH, Caverton Group, Okomu Oil, Jaiz Bank, and May & Baker. The others are NAHCO, BUA cement, PRESCO, NASCON, UACN, Nigeria brewery, Dangote Sugar, Japaul, Eterna Oil, Champions brewery, BOC Gases, Sterling Bank and ABC Transport. Despite the nearly three months lockdown caused by COVID-19, 10 of them made more profit this year compared with the same period in 2019. They include Okomu Oil (N4bn vs N2.5), Dangote Cement (N126bn vs N119bn), Jaiz bank (N1.1bn Vs N814m), May & Baker (N339m vs N291m), BUA cement (N35bn vs N30bn), PRESCO Oil (N4.3bn vs N2.6bn), NASCON (N860m vs 754m), Dangote Sugar (11.6 vs 10.9bn), BOC Gases (N127m vs a loss of 614m) and FBNH (N49.5bn vs N31.6bn). And despite reporting less profit in half year 2020 (N95bn vs N99.5b), MTN Nigeria reported N638bn revenue in 2020 compared to N566.9bn in 2019. This 12.5% profit was driven by growth in data revenues in the first and second quarters of the year. Dangote Cement, posted N126.14bn profit, against N119.24bn recorded H1 of 2019. The company reported revenue of N476.85bn for June 2020 compared to N467.73bn recorded in June 2019, representing a 2% increase. BUA Cement declared revenue of N101.3bn and a PAT of N34.82bn representing 12.7% and 13.74% rise respectively compared to 2019. Despite the travel shutdown, Caverton Offshore Group, a helicopter service firm reported N8.1bn in Q2 compared to N8.5bn in got had in June 2019. Oil-rich towns in the Niger Delta overcame the shutdowns as Caverton Group catered mainly to businesses in the oil and gas industry; it represents 93% of its revenue. While foreign investors have been staying off the Nigerian equities market lately, due to forex issues and COVID-19, local investors are positioning for dividend payments from Nigerian biggest brands, in spite of the pandemic and the oil glut. Speaking on the companies’ performance, Philip Anegbe, Team Lead, CardinalStone Research, said: “It is likely that market would see some more profit-taking in Q2 and even beyond despite recent upbeat demand. “For instance, in Banking, despite the anticipation of broad weakness in performance in FY’20, we see the potential for resilience in specific names that are better positioned to withstand the crises. He said consumer goods companies like Nestle, and fiscal policies had helped the agricultural sector.

Source: https://www.dailytrust.com.ng/22-banks-others-record-n89bn-drop-in-profit.html