11 Plc Records N9.3 Billion Profit, Market Remains Bearish

Double One Plc (formerly Mobil Oil Nigeria) has reported a profit after tax of N9.329 billion for year ended December 31, 2018. This represented an increase of 24.1 per cent compared with 7.518 billion in 2017. The PAT was made from a revenue of N164.609 billion, as against N125.257 billion in 2017. A breakdown of the results showed that cost of sales went up to N148.015 billion compared with N109.984 billion in 2017. Selling and distribution expenses rose from N5.796 billion to N6.924 billion, while administrative expenses jumped to N5.024 billion as against N3.828 billion in 2017. Finance cost reduced to N41 million, from N87 million in 2017. Profit before exceptional items stood at N13.695 billion in 2018, showing a marginal growth of 2.4 per cent. However, unlike last year when the company incurred an exception item of N2.228 billion, nothing was recorded this year. Hence, PAT grew faster by 24.1 per cent to N9.329 billion, compared with N7.518 billion in 2017. Based on the results, the board of the company has recommended a dividend of N8.25 per share, which would be approved by the shareholders at the next annual general meeting. Commenting on the fourth quarter results, analysts at FBN Quest said compared with their estimates, while sales were slightly below their N40.8 billion forecast, profit before tax (PBT) missed by 44 per cent. According to them, the variance was driven by negative surprises on the operation expenses and other income lines. “Full year PBT of N13.7 billion came in well behind consensus estimate of N16.5 billion. Management proposed a final dividend of N8.25, slightly behind consensus forecast of N9.35,” they said. Also, in their comments, analysts at Cordros Capital Limited said the earnings per share and earnings before interest and taxation were above 2017 levels because of absence of previous year’s exceptional charge. “Adjusting for the charge, EPS would have been down by 4.3 per cent, reflecting a weak operational performance in the period, amidst the still challenging operating environment. We foresee a negative reaction,” they said. The stock was among the price losers yesterday, shedding N3 to close lower at N167 per share. The market remained bearish with the Nigerian Stock Exchange (NSE) All-Share Index depreciating 0.30 per cent to close at 31,042.32. Similarly, market capitalisation shed N36 billion to close loser at N11.576 trillion. In all, 19 stocks declined while 12 appreciated.