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A book publishing firm, Learn Africa PLC has declared N4 billion as its total revenue after the close of its 2023 fiscal year which ended March 2024.

The firm’s chairman, Emeke Iwerebo, stated this during the firm’s 51st annual general meeting, stressing that the total revenue achieved in the 2023 fiscal year surpassed the N3.5b recorded in 2022, translating to an 18% per cent growth.

“In the 2023 fiscal year, our company, despite the harsh economic environment, achieved an 18% growth in revenue, increasing from N3.472 billion in 2023 to 4.084 billion in 2024.

“The company also achieved a marginal increase in gross profit from N1.908 billion in 2023 to N2.122 billion in 2024, having been profoundly affected by the unprecedented surge in publication costs of over 70% during the calendar year,” he said.

He, however, said the firm recorded N439m on credit loss, translating to a 57 per cent decline on its operating profit, adding however that despite the loss, the firm achieved N11.2m profit after tax.

-By Dotun Omisakin

Investors’ attention has been drawn to Oando Energy Plc, one of Africa’s top providers of energy solutions, on account of the group’s acquisition taste, which began in 2014 with ConocoPhillips.

In a latest rally, Oando Plc gained about 451% in the third quarter of 2024 due to investors’ healthy sentiment in the stock market, CardinalStone Securities Limited dropped the hint in a note.

“On a quarter-on-quarter basis, the all-share index lost 1.50%…OANDO gained +450.67% and led the gainers’ list, the firm stated. Trading data showed that the indigenous oil company share price rose to N82.6 on the Nigerian Exchange (NGX) due to sustained demand for oil stocks.

The price surge followed key events that improved the energy company’s earnings fundamentals and triggered valuation adjustments. Investment banking experts told MarketForces Africa that the Oando Energy Plc acquisition taste will keep the company’s market value uptrend.

The market has increase the market value of Oando’s 12.431 billion shares outstanding on the Nigerian Exchange to N1.026 trillion, according to trading data obtained from the local bourse.

Investors have been betting large on Oando Energy on the expectation that the company’s oil asset growth would generate more income, boost earnings per share and perhaps lead to improved dividend payments to shareholders.

Analysts believe that if deployed properly, the oil asset from its latest acquisition would drive earnings higher. For the company, a major event that bolstered earnings expectations was the completion of its acquisition of Nigeria Agip Oil Company from Eni.

In July, Eni secured the Nigerian Upstream Petroleum Regulatory Commission’s formal consent for the planned sale of its Nigerian Agip Oil Co., or NAOC, unit to energy services company Oando.

The Italian energy company announced the approvals and then proceeded with the completion of the transaction, which was first announced in September 2023. Afreximbank syndicated loans for the successful acquisition of the company, which raised the Oando oil asset significantly.

Eni noted that it will retain the 5% participating interest in the Shell Production Development Co joint venture with Shell, TotalEnergies, and Nigerian National Petroleum Corp.

Recall that Oando acquired ConocoPhillips’ Nigerian asset in 2014 to transform itself from a petrol retailer to an oil producer. #Oando Jumps by 451% in Q3-2024 on Successful Acquisition Jaiz Bank Value Increases by 11.2% to N86 Billion

-By Julius Alagbe

United Bank for Africa (UBA) Plc shocked the market with the N2.00 interim dividend proposed by the board of the company for the period ended June 30, 2024.

This was because the amount offered to shareholders by the lender was higher than its peers in the tier-1 category, especially as the likes of Zenith Bank and GTCO paid N1 for the same period to their shareholders.

Normally, Zenith Bank and GTCO pay their shareholders higher rewards than the trio of UBA, FBN Holdings and Access Holdings in the tier-1 category, collectively known as ZAGUF.

On Monday, when UBA released its half-year earnings, it offered to reward its investors with an interim dividend of N2 for every ordinary share of 50 Kobo each subject to applicable withholding tax. This amount was higher than the 50 Kobo paid in the same period of 2023 by 300 per cent.

In a notice to the Nigerian Exchange (NGX) Limited, the lender said this money would be “paid to shareholders whose names appear in the register of members as at the close of business on Monday, October 14, 2024.”

With the register of members expected to be closed on Tuesday, October 15, 2024, UBA said shareholders should anticipate bank alerts of the payment on Tuesday, October 22, 2024, particularly if they “have completed the e-dividend registration and mandated the registrar to pay their dividends directly into their bank accounts.”

This announcement triggered buying interest in UBA stocks at the equity market on Monday as investors jostled to have a bite of the pie.

The Naira closed September 2024 at N1,541 on the official NAFEM window, reflecting a slight improvement compared to its performance in July and August 2024.

In the parallel market, however, the Naira hit its lowest point in seven months, closing September at N1,700/$—the weakest level since February 2024.

At the start of September, the official exchange rate on the NAFEM window was N1,585/$, indicating a 2.77% appreciation by the end of the month.

Nairalytics data shows that September’s Naira performance was the strongest since June 2024 when it closed at N1,505/$ on the official window. In July, the Naira settled at N1,608/$ on the official market and N1,600/$ on the parallel market. August saw a similar trend, closing at N1,598/$ and N1,616/$ on the official and parallel markets, respectively.

FX turnover and CBN’s interventions 

However, in terms of daily forex turnover, September saw the highest daily turnover since July 11th 2024 when daily forex turnover reached $348 million. On September 26th 2024, daily forex turnover stood at $334.05 million.

Coincidentally, the increase in trade volume on the 26th of September comes a day after the announcement by the Central Bank of Nigeria (CBN) to sell $20,000 to Bureau De Change (BDCs) at N1,590/$ providing for a profit margin of 1%.

The move by the CBN to sell dollars to BDCs was part of effort to provide additional liquidity in the forex market after FX turnover in the previous day fell to just over $100 million and the Naira traded at N1667/$ on the official market- the lowest point in the month under review.

Also, the apex bank raised interest rates for the fifth consecutive time during the month under review in a bid to bring stability to the forex market.

Nairalytics data shows that September’s Naira performance was the strongest since June 2024 when it closed at N1,505/$ on the official window. In July, the Naira settled at N1,608/$ on the official market and N1,600/$ on the parallel market. August saw a similar trend, closing at N1,598/$ and N1,616/$ on the official and parallel markets, respectively.

FX turnover and CBN’s interventions 

However, in terms of daily forex turnover, September saw the highest daily turnover since July 11th 2024 when daily forex turnover reached $348 million. On September 26th 2024, daily forex turnover stood at $334.05 million.

Coincidentally, the increase in trade volume on the 26th of September comes a day after the announcement by the Central Bank of Nigeria (CBN) to sell $20,000 to Bureau De Change (BDCs) at N1,590/$ providing for a profit margin of 1%.

The move by the CBN to sell dollars to BDCs was part of effort to provide additional liquidity in the forex market after FX turnover in the previous day fell to just over $100 million and the Naira traded at N1667/$ on the official market- the lowest point in the month under review.

Also, the apex bank raised interest rates for the fifth consecutive time during the month under review in a bid to bring stability to the forex market.

FAAC allocation and foreign reserve movement in the month 

On the exchange rate, the Governor of the CBN alluded to a correlation between the monthly disbursement from the Federation Account Allocation Committee (FAAC) and FX demand pressures. He noted that going forward the bank will monitor future disbursement by the FAAC to determine its impact on prices.

Foreign reserves increased by almost 5% in the month of September rising from $36.24 billion at the beginning of the month to $38.058 billion by September 30th, 2024.

-By Aghogho Udi

United Bank for Africa has posted a 40 per cent growth in gross earnings to N1.37tn in the first half of 2024 from N981.77bn in the prior period of last year.

The pan-African banking group declared an interim dividend of N2 per share for, a 300 per cent increase from the N0.50 declared in the same period of 2023.

This was disclosed in its audited financial results for H1 ended June 30, 2024, filed with the Nigerian Exchange Limited on Monday.

In the period under review, the bank’s interest income surged by 134.3 per cent to N1.003tn, up from N428.2bn in June last year.

Total assets increased by 37.2 per cent, climbing from N20.6tn in December 2023 to N28.3tn, while customer deposits grew by 33.7 per cent to N23.2tn.

The profit before tax stood at N402bn, lower than the N403bn reported in June 2023, while pre-tax profit dipped to N316bn from N378bn in H1 2023.

Shareholders’ funds, however, rose by 47 per cent, increasing from N2.03tn in December 2023 to N2.99tn.

Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, emphasised the bank’s commitment to delivering value to its shareholders.

He stated, “UBA Group has continued to deliver strong double-digit growth in high-quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction, and digital banking businesses across geographies.”

He also noted that the bank was making significant investments in technology, data analytics, product research, and innovation to enhance customer experience as it intensifies its customer acquisition drive.

The Executive Director of Finance & Risk, Ugo Nwaghodoh, expressed satisfaction with the bank’s operational efficiency, with a cost-to-income ratio stabilising around the 50 per cent range.

He stated, “Our cost optimisation provides scope for further moderation, as we explore options towards a drastic reduction of our foreign currency-denominated cost components, robotising processes, and applying artificial intelligence.”

Nwaghodoh explained that the group was focused on effectively managing heightened credit, operational, cyber, and information security risks while aligning with sustainability goals.

He added, “The group has made significant progress and is on course to shore up its share capital to support its medium to long-term aspirations, aligning with regulatory requirements in Nigeria and other jurisdictions.”