C&I Leasing targets $100m fresh capital
TO consolidate performance, C&I Leasing Plc has concluded plans to raise additional $100 million to expand its fleet operations.
The Group’s Chief Finance Officer (CFO), Alex Mbakogu, while addressing investors at the company’s investors’ forum in Lagos, on Thursday, said the Group will be raising more capital from its already multiple contracts with the International Oil Companies (IOCS) on its offshore support vessels and related marine services.
According to him, the company plans to raise the money at a time when its businesses are on the trajectory of growth.
He added that discussions are on with oil majors on extending its vessels contracts with them for more years to come.
“Lots of discussions are on-going with the IOCS on extending offshore support vessels and related marine services. You know, marine business contract is highly capital intensive and highly risk in nature. Even one vessel contract can cost between $20million and $25 million.
“So, we have about six discussions of vessels contracts on-going with the oil majors now and if we can have two or three of these contracts clicked, we will realise between $50 million and $100 million in the next two or three years. This will surely boost our expansion business plan,” he said.
Mbakogu noted that while exploring cheaper sources of funds, the company also plans redemption of $12.4 loan stock from Abraaj.
He added the company will also focus on developing human capital to strengthen service delivery and improve on implemented cost optimisation initiatives. Mbakogu noted that the group experienced continuous growth in pre-tax profit margin between 2013 and 201, adding that it moved from a pre-tax profit margin of 2.48 per cent to a pre-tax profit margin of 6.09 per cent in 2016.