Newspaper Review - Friday, June 7, 2013
Index up by 0.3% as 39 stocks gain
The increase in equity trading activities recorded from Monday continued on Thursday, with major indices closing positive. At the close of trading, the Nigerian Stock Exchange’s All-Share Index rose by 0.1 per cent or 56.88 basis points from 39,453.23 points to 39,510.11 points. Similarly, the market capitalisation of the listed equities increased by 0.1 per cent or N18bn to N12.623tn up from N12.605tn recorded the preceding day. The NSE-30 Index rose by 0.1 per cent or 1.60 basis points from 1,885.11 points to 1,886.71 points, while the Consumer Goods Index rose by 0.6 per cent or 6.95 basis points to close at 2,373.28 points, 2,364.49 points the preceding day. The banking index rose by 0.5 per cent or 2.05 points to 451.79 basis points up from 449.74 basis points. However, the NSE Oil/Gas Index fell to 188.15 basis points, down from 190.22 basis points recorded the previous day.
NSC Boss Wants Nigeria’s Petroleum Products Carried on CIF
The campaign for Nigeria to carry her crude oil and petroleum products on the basis of Cost, Insurance and Freight (CIF) has received a boost with the Acting Executive Secretary of Nigerian Shippers’ Council (NSC), Mr. Hassan Bello, drumming up support for it. Nigeria presently maintains a regime of carriage of her crude and petroleum products on Free on Board (FOB) basis. The practice has cost Nigeria yet-to-be estimated billions of dollars over the years. FOB means that the buyer of Nigeria’s crude oil would nominate the ship to carry the cargo to destination of choice. In the same vein, Nigeria buys her imported goods on CIF and sells FOB. Apparently pained by the enormous loss to the central till by the skewed fiscal policy over the years, several industrial players, especially stakeholders in the shipping sector of the economy have called for a change in the practice to no avail. Adding his voice to the clamour, Bello, who is also a lawyer, told reporters that Nigeria, nay Nigerians, would benefit more if its goods were shipped on CIF rather than on FOB.
FG earned N1.5tn from taxes in three months
The Federal Government on Monday said it realised the sum of N1.5tn as tax revenue in the first three months of this year. This was disclosed in a statement issued by the Federal Inland Revenue Services and signed by the Director, Communications and Liaison Department, Mr. Emmanuel Obeta. It gave an assurance that going by the current revenue collection pattern; it would, by September this year, meet up with the government’s revenue target of N5.72tn. In view of this, the statement said FIRS had raised its revenue collection target from N5.72tn to N6tn. It said, “From its first quarter 2013 revenue collection streaks, the FIRS has assured that it will meet the government revenue target of N5.72tn by September 2013. “Also, drawing confidence from the result of its modernisation and automation projects, particularly, the Integrated Tax Administration System, FIRS has raised its internal revenue target of 2013 to N6tn.” The statement also said the management team has strategised on how to achieve the targets. It quoted the Acting Executive Chairman, Alhaji Kabir Mashi, to have said, “We must be focused and not to be distracted. I like to assure you that we will remain resolute and committed on our mand
GlaxoSmithKline Nigeria PLC: Strong performance drives share price growth
GlaxoSmithKline Consumer Nigeria PLC (GSK), an affiliate of GlaxoSmithKline worldwide, was incorporated in Nigeria on 23rd June 1971 and commenced business on 1st July 1972, under the name Beecham Limited. GSK is a leader in the health and consumer goods space in Nigeria and is led by an ambitious and aggressive management team. The company was quoted on the Nigerian Stock Exchange in 1977 and manufactures, markets and distributes healthcare as well as consumer products like Ribena fruit juices, Lucozade energy drinks and vaccines. The company operates an ultra-modern drinks factory in Agbara industrial estate, Ogun State, which has been expanded to include facilities to manufacture Oral Healthcare (OHC) and Wellness products. Consumer health-care sales have been rising 21 percent a year over the past four years in Nigeria, Africa’s most populous country of over 160 million people and biggest oil producer, with GSK adequately positioned to take advantage of that growth. The company has rolled out marketing and sales initiatives with a strategic priority of continuous improvement and customer focus, with a strong passion for innovation.
Three banks raise $1.15bn from global market – DMO
Three banks in the country raised $1.15bn from the international capital market between 2011 and May 2013, following Nigeria’s successful sovereign bond issuance in 2011, the Debt Management Office has said. The Director-General, DMO, Dr. Abraham Nwankwo, said this in Lagos on Thursday at a public lecture organised by an online newspaper, The Citizen. He, however, did not reveal the names of the banks. Nwankwo, while speaking on the topic, ‘Paris Club exit and new debt: A growth imperative or avoidable dilemma?’ stressed that it was necessary to highlight the impact of Nigeria’s public debt management operations because the focus had been on the amount borrowed rather than the benefits. He said the sovereign debt issuance was part of deliberate efforts by the Federal Government to resuscitate the bond market, which had been neglected by successive military governments. Explaining why a vibrant bond market was important, the DMO DG said, “Even if the Federal Government didn’t need to borrow money to fund projects, there was the need for it to provide debt instruments for the private sector.”
Indigenous firm introduces powder stew mix product
Career wives and men who face office pressure which does not give them time to shop for food ingredients and also cook at home can now heave a sigh of relief as an indigenous firm, Vowels AA Limited has launched Idee’s Stew mix, a food breakthrough sachet stew powder mix that can also replace buying raw ingredients in the market. Idee’s Stew Mix food was developed out of difficult situation which gives credence that difficult condition inspires ingenious solutions. Faced with office pressure at Unilever which did not give her enough time to cook for the family, the Chief Executive Officer of Vowels AA, Omoniyi Akinleye thought of developing a food mix that could assist workers who close late. “The idea to develop a dry powder mix that makes cooking easier was conceived from working long hours and the need to still cook for the family no matter how tired one was or how late one gets home. Idee’s takes the stress off cooking and offers a solution to the current time challenges.
GSK Nigeria records N25.3 billion turnover, N2.82 billion profit in 2012
GlaxoSmithKline Consumer Nigeria Plc (GSK) has posted a turnover of N25.3 billion in its 2012 operations, against N21.5 billion in 2011. The company’s profit after tax also increased to N2.82 billion, up from N2.29 billion in 2011. Addressing shareholders at the 42nd yearly general meeting of the company in Lagos recently, the company’s Chairman, Olusegun Osunkeye explained that profit before tax rose from N3.49 billion to N4.17 billion during the year under review. Osunkeye added that the percentage increase in turnover was 18 per cent while profit after tax rose by N23 per cent. Based on the improved performance, he explained that the company’s board had approved N1.245 dividend, culminating to N1.30 kobo per share, due to every shareholder of the company. Reviewing the 2012 performance further, Osunkeye, who assured shareholders that the company would continue to seek innovative ways to enable it unlock opportunities also explained that the company increased the 150ml pack size with the strawberry variant during the year under review while the Panadol tablets is currently packaged in 4 by 20 packs.
Lafarge Cement WAPCO pays N3.6bn worth of dividend
Lafarge Cement WAPCO Nigeria Plc has paid out a total of N3.602billion as dividend following unanimous approval by the company’s shareholders at its 54th Annual General Meeting (AGM) in Lagos last Tuesday. The company recorded a 41 per cent increase in its turnover from N62.502billion in 2011 to N87.965billion for the year ended December 31, 2012. Its profit after tax (PAT) also rose by 70 percent from N8.6billion the previous year to N14.712billion in 2012, while its operating profit rose by 98 per cent from N13.252billion the year before to N26.264billion in the year under consideration. The company’s financials also showed that the volume of cement dispatched for the year was 2.9 metric tonnes, up by 35 per cent in 2011. The N3.602billion total dividend payout by the company translates into a dividend payout of N1.20k per share, and represents an increase of 60 per cent over 75 kobo dividend paid the previous year. Olusegun Osunkeye, Chairman, Lafarge Cement WAPCO Nigeria said, “In order to maximise the return to our shareholders, we have as much as cash flow requirements will allow, accelerated the repayment of some of our bank loans in order to minimise interest expense.
NASCON’s turnover rises to N13.4bn
National Salt Company of Nigeria Plc recorded a turnover of N13.4bn for the year ended December 31, 2012. The company’s turnover, which stood at N10.3bn at the end of 2011 financial year, rose by N3.1bn or 30 per cent to close at N13.4bn in the year under consideration. Its profit after tax also rose by N7bn or 33 per cent to close at N2.8bn, up from N2.1bn recorded in the similar period of 2011. Addressing shareholders at the company’s Annual General Meeting in Lagos on Thursday, the Chairman, NASCON, Alhaji Aliko Dangote, said following the performance, the company recommended a total dividend of N2.35bn, translating to 90 kobo per share. He also promised shareholders of improved activities in the coming years, adding that the future of the company remained secured. As part of its plans for the coming years, he disclosed that the company would commence the production of cube seasonings and tomato packaging, as well as vegetable oil refinery in order to consolidate on the performance. He said, “We are committed to improving our upward trend and we will ensure that your company continues to grow and remain competitive so as to deliver increasing dividend to all stakeholders.
Umar: 561,883 Metric Tonnes of Cargo Moved via Rail
Not less than 561, 883 metric tonnes of cargoes have been conveyed by rail from 2011 till date, the Minister of Transport, Senator Idris Umar, has disclosed. A weekly movement of 1,500 tonnes, which is equivalent to 50 trailer load of cement for Lafarge Cement Plc, was also carried by rail from Ewekoro to Ibadan, Oshogbo, Ilorin, Minna, and Kano within the period under review. There was also a weekly haulage of petroleum products by rail from Lagos to Kano, just as laterite was conveyed from Otukpo to Makurdi covering 100,000 tonnes. The laterite, which was meant for one of Nigeria’s foremost construction firms, SCC Nigeria Limited, is equivalent to 3,333 trailer loads. Umar, who revealed this at the 2013 ministerial platform, Radio House, Abuja, said Nigerians have continued to benefit from the Federal Government implementation of what he called the “railway strategic vision”. He stated that beyond the cargo benefits, there are also passengers’ benefits as more Nigerians are now using the rails to move from one place to another within the period under review.
Oil & Gas discovery spurs attraction from South African firms: Ghana
There’s been an increase in enquiries streaming in from South African firms wanting to invest in Ghana’s tourism, telecoms and health sectors, according to reports. These firms have been attracted to Ghana following the discovery of oil and gas in the West African country, which have triggered economic growth in the country. Jeff Blackbeard, Africa Strategy Advisor for accounting and consulting firm, Moore Stephens South Africa, said: “We are seeing huge opportunities for the private sector in Ghana in spin-off and support industries. This will create the platform for further growth.” The World Bank said the Ghanaian economy is forecast to surge by over seven percent this year, Ventures Africa reports. The bank said the country’s economy has been lifted by gold production and the recent commercialization of oil and strong cocoa production.
US shares advance on stimulus
United States stocks rose, with the Standard & Poor’s 500 Index erasing earlier losses, as investors weighed the Federal Reserve’s stimulus plans before a report on employment growth on Friday. Verizon Communications Incorporated jumped by 3.4 per cent as phone stocks gained the most in the S&P 500. Bloomberg News reports that Costco Wholesale Corporation advanced by one per cent after reporting an increase in sales. VeriFone Systems Incorporated plunged by 21 per cent as the maker of credit-card terminals forecast earnings that missed analysts’ estimates. Verizon Communications Inc. jumped 3.4 percent as phone stocks gained the most in the S&P 500. Costco Wholesale Corporation advanced by one per cent after reporting an increase in sales. VeriFone Systems Incorporation plunged by 21 per cent as the maker of credit-card terminals forecast earnings that missed analysts’ estimates.
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