Okomu Oil’s full-year profit drops by N3bn

Leading oil palm processing firm, Okomu Oil Palm Company Plc, has reported a plunge in its after-tax profit, amounting to N2.997 billion for Full Year 2019, compared to the corresponding period of 2018.

This and other financial details are contained in the firm’s Management Reports (Interim) for 12 Months Ended December 31, 2019, posted on the website of the Nigerian Stock Exchange (NSE) on Monday.

Turnover dropped marginally from N20.258 billion at FY2018 to N19.601 billion at FY2019, representing a 3.2% fall.

Profit on Continuing Operation Before Tax cratered to N7.978 billion at FY2019 from the N10.337 posted in the same period of 2018.

Profit on Continuing Operation After Tax plummeted by 35.3% from N8.502 billion at the end of December 2018 to N5.505 billion in the relative period of 2019.

Moderate rise in Cost of Sales by 9.8% from N5.359 billion at FY2018 to N5.886 billion at FY2019, and a steep rise in Taxation by 34.8% from N1.835 billion at FY2018 to N2.474 billion at FY2019 accounted for the plunge in profit.

There was equally a growth in Net Operating Expenses to N5.632 billion at FY2019 from N4.606 billion at FY2018, signalling a 22.3% rise.

Similarly, Finance Income shrank by 71% from N353.685 million at FY2018 to N102.453 million in the corresponding period of 2019.

Read also: Transcorp’s 27% revenue shortfall shrinks profit by N13.6bn

Earnings Per Share (EPS) slumped from N8.91 at FY2018 to N5.77 in the period under review, translating to 35.2% fall.

Established in 1976 as a Federal Government pilot project intended to transform oil palm production in Nigeria, Okomu Oil was incorporated in 1979 as a limited liability company. Luxemburg-based Socfinaf owns 66.12% stake in the firm and is also a technical partner to the company.

The firm had last August struck a synergy with the Edo State Government and Terra Agric Nigeria to cultivate 5,000 hectares of land over a six-year period.

However, an alliance of civil society organisations alleged in December that the company was involved in land grabbing, deforestation and killing of an endangered elephant calf on its calf. It said the company had forcibly taken over roughly 16,000 hectares from the Okomu National Park (ONP) area and buffers of the park.

Okomu Oil’s outstanding shares are 953.910 million with a market capitalisation in the region of N64.866 billion. Its dividend yield is 4.41%.

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