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Transcorp reports strong earnings growth on improved power operations
Transnational Corporation of Nigeria Plc has reported that its 2017 first quarter revenue rose by 19.5 percent to N15.77 billion from N13.19 billion posted in a similar quarter last year.
Transcorp reported 34 percent revenue growth at its power subsidiary, from N9.5 billion in Q1'16 to N12.78 billion in Q1, 2017.
Transcorp said revenue from its hospitality operations declined by 19 percent due to the six-week closure of the Nnamdi Azikwe International Airport, Abuja. The company said after-tax profit rose 24 percent to N1.49 billion compared with N1.21 billion a year earlier. The profit growth was supported by a 55 percent decline in income taxation.
Guinness Nigeria earnings beat analysts' estimates despite loss
Guinness Nigeria has reported earnings that exceeded analysts' expectations for the nine-month period to March 2017. The company said revenue rose 29 percent to N89.87 billion compared with N69.62 billion posted in the previous nine months.
A breakdown of Guinness Nigeria's revenue shows that its Nigeria sales accounted for the most of the increase in total revenue. Sales in Nigeria rose 26 percent to N85 billion, while export sales rose 124 percent to N4.87 billion.
Notwithstanding the strong top-line growth, Guinness Nigeria reported a loss after tax of N2.56 billion compared with an after-tax profit of N1.2 billion a year earlier. The loss was driven mainly by sharp increases in cost of sales and finance costs during the period under review.
IFC, Amundi to create $2 billion green-bond fund for emerging markets
The International Finance Corporation and Amundi, a Paris-based asset management company, have agreed to create a $2 billion green bond, named Green Cornerstone Bond Fund. The fund will be dedicated to climate investments in emerging markets.
The IFC said it will invest up to $325 million in the new bond, which will buy green bonds issued by banks in Africa, Asia, the Middle East, Latin America, Eastern Europe, and Central Asia.
Amundi will raise the remainder of the target fund from institutional investors, worldwide. The asset manager will also provide its services in managing the emerging-market debt. The fund aims to be fully invested in green bonds within seven years, the IFC said.
The global market for green bonds has expanded rapidly in recent years, reaching over $100 billion in 2016. Nigeria and other developing countries are planning to tap into the green bond market to raise funds for infrastructure projects.
CBN suspends nationwide rollout of cashless policy
The Central Bank of Nigeria has directed commercial banks to suspend the ongoing nationwide rollout of its cashless policy. The apex bank did not provide any reasons for the suspension of the policy.
In March this year, the CBN announced that it would embark on a nationwide implementation of its cashless policy, which had been in force in only six states – Lagos, Ogun, Kano, Abia, Anambra, and Rivers – and the Federal Capital Territory.
The CBN also announced that it had reintroduced charges on cash transactions, imposing new rates for deposits and withdrawals nationwide. The apex bank had planned a phased rollout of the policy nationwide.
But in a circular issued to banks, the CBN directed banks to suspend the planned rollout and revert to the old charges of 3 percent processing fees for individual withdrawals above N500,000 and 5 percent processing fees for corporate withdrawals above N3 million.
Seplat Petroleum reports Q1 loss as Forcados pipeline remains under force majeure
Seplat Petroleum, a Nigerian oil and gas company with dual listing on Lagos and London stock exchanges, has reported a loss for the 2017 first quarter owing to the continued shutdown of the Forcados oil pipeline. The company said after-tax loss reached $19.14 million compared with $22.54 million in a similar quarter last year.
Revenue declined by 43 percent to $47.3 million as against $83.42 million posted in Q1'16. The decline in revenue was caused by lower working interest oil production.
Strong gas revenue was the only bright spot for Seplat, accounting for 53 percent of total revenue compared with 32 percent a year earlier. The company said it had $155.71 million in cash and cash equivalents as of March 31st, 2017.
Bounty Brands secures $22mn IFC financing for expansion
Bounty Brands, a leading South African consumer goods business, has secured a $22 million financing from the International Finance Corporation to support the company's expansion across markets in Africa and Europe.
The Cape Town-based company will utilize the IFC financing to launch new products in its home market in South Africa as well as venture into new markets in Kenya, Zambia, Mozambique, Botswana, and Poland. The expansion is expected to double the company's direct employees from 2,080 currently to over 4,000 by 2021.
The IFC financing will be in the form of a convertible loan, which can be redeemed in cash or converted to common equity upon Bounty Brands' successful share listing on the London and Johannesburg stock exchanges.