Research and Analytics
Research and Analytics
Although revenue declined, we note that the cost of sales surged during the period. Specifically, cost of sales was N103.94 billion compared to N70.65 billion recorded in the corresponding period of 2019. This was due to 95% increase in operational and maintenance expenses (N23.56 billion) and 59.4% increase in depletion, depreciation and amortisation (N33.75 billion).
Gross profit grew by 13.6% compared to the corresponding period of 2019. The gross profit growth is however slow due to the fact that the growth in cost of sales was more than the growth in revenue. While revenue grew by 13.6% y/y, the cost of sales grew by 28.8%. Hence, gross profit printed N71.73 billion.
With profit after tax increasing by 16.7% and earnings per share declining by 30.8%, then we suspect the decline must have been due to the listing of additional shares during the year.
In the first 9 months of 2020, Dangote Cement (DANGCEM) plc was able to grow its revenue by 12% on the basis of solid production volume (+5.6% y/y to 18.40 million tonnes) with an overall effect on sales volume (+6.6% y/y to 19.21 million tonnes).
A simple analysis of the 2019 NNPC Group and NNPC Corporation Financial Performance
This report examines the property market in Nigeria based on the data obtained from the NIESV.
MTN Nigeria increased its subscribers base by adding 6.8m to its network totaling 71.1m mobile subscribers as of June 2020. Total revenue generated was up by 12.5% (y/y) to ₦638.08bn for the first half of the year, compared to ₦566.95bn generated in the same period in 2019. Growth in revenue was largely driven by a 12.6% increase in revenue from Services provided which accounted for 99.8% of total revenue (₦636.99bn).
Service revenue included revenue from its core activities of providing voice calls, data services, digital platforms, fintech (MoMo), and Other services (SMS, USSD, etc.).
Offshore drilling major Valaris became the latest victim of the crisis this week as it filed for bankruptcy in the U.S., proposing a swap of some $6.5 billion in debt that will see creditors become its owners. But it is just the latest headache for offshore drillers. There is more than $20 billion in offshore drillers’ debt still out there—and there are not many new drilling contracts.
Although Stock bourses are forward looking in nature, they generally portray the momentum of the economy. An upward trend could signal investors’ confidence in the market while otherwise could mean sell-offs and economic activities are going south.
This article provides a critical review of the financial performance of the 20 subsidiaries of the NNPC for the 2018 financial year. We also provide an aggregate figure for the Group based on the results of the 20 subsidiaries.
