BusinessDay 26 Feb 2018

Monday 26 February 2018 C002D5556 BUSINESS DAY 19
COMPANIES
& MARKETS
Company news analysis and insight
PENGASSAN proffers
solutions to Nigeria’s
lingering fuel crisis
Pg. 21
2018’s lists of dividend declared so far
BALA AUGIE
There are indications
that financial
results will start
pouring from different
corners into
the website of the Nigerian
Stock Exchange (NSE).
Before those results start
trickling in, we have decided
to show the lists of firms that
have paid dividend so far in
2017.
Dividend paying stocks
are attractive to investors as
they expect share appreciation.
Nigerian Breweries Plc
The board of directors
of the Nigerian brewer has
recommended a N33 billion
dividend to shareholders for
2017 financial year, which
15.39 percent increase from
the N28.13 billion distributed
in 2016.
The recommendation,
which amounts to a total
dividend of N4.13 per share
for the 2017 operating year
was part of the company’s
filing to The Nigerian Stock
Exchange on Thursday, 15th
February 2018.
NB has been maintained a
100 payout ratio as it distributed
all of earnings as dividend,
which is a manifestation of
a consistent profit position
while dividend yield stood at
3 percent.
While the company recorded
a 16.18 percent increase
in net income to end
2017 financial year, profit
margins have succumbed
to higher production and
material costs. Sales volumes
have dropped 4-6 percent,
according to parent company
Heineken.
Nigerian Breweries is
trading at a price earnings
ratio of 32x; this suggest the
market expects the stock to
grow its earnings every year.
The stock is also trading
at a price to book ratio of
5.8x, meaning that its market
value is nearly 6 times its Net
Assets.
The Nigerian Brewers’
share price closed at N124 at
the close of business on Friday,
valuing it at N1.04 trillion.
Transcorp Hotel Plc
The board of Transcorp
Hotels Plc has recommended
to shareholders for approval
of a dividend of 12.40 kobo
per share to be paid on March
2017. For the year ended
December 2017, the company
posted a profit after tax
of N2.68 billion while sales
stood at N13.84 billion in the
period under review.
The company has been
grappling with the tough and
unpredictable macroeconomic
environment.
Slow economy,
financing
costs hit Kenya
Power’s firsthalf
profit
Kenya Power posted
a 19 per cent drop
in first-half pretax
profit, mainly due
to sluggish economic growth
and higher financing costs.
The firm, which is the
main electricity distributor
in the East African nation,
suffered from lower demand
due to a protracted presidential
election, which hurt
economic activity.
Electricity sales increased
2.3 per cent in the six months
to end-December and revenue
rose by a modest 2.5
per cent, the company said
on Friday. Pretax profit was
4.6 billion shillings (45.21
million dollars ).
Financing costs jumped
11 per cent to 3.2 billion shillings
as the company raised
its use of short-term debt
during the period. Kenya
Power said it would take
advantage of the government’s
plan to boost the
manufacturing sector, to
increase electricity demand
in the second half. Kenya
President Uhuru Kenyatta
has set out manufacturing as
one of his priority areas and
he has directed officials to
implement a new night-time
electricity tariff for firms who
wish to increase production
Council of State okays $1bn to boost
agriculture, economic diversification
The Council of State
on Thursday approved
a fresh one
billion dollars to
further boost the nation’s
agricultural sector, Gov. Ibikumle
Amosun of Ogun, has
disclosed.
Amosun, briefing the
State House Correspondents
after the council’s meeting
at the Presidential Villa,
Abuja, expressed hope that
the amount would enhance
the Federal Government’s
diversification programmes.
However, the governor
kept mum on how the funds
will be sourced.
The meeting which was
presided over by President
Muhammadu Buhari had
in attendance, three former
Heads of State, Gen.
Yakubu Gowon, Gen. Abdulsalami
Abubakar and
former President Olusegun
Obasanjo.
According to him, an
appreciable part of the one
billion dollars is expected
to be distributed around
agricultural schemes, with
conditions set out for the
beneficiaries to meet before
accessing the funds.
“The Council deliberated
extensively on our economy,
how to diversify our
economy and the efforts
that were being made to pull
Nigeria out of the doldrums.
“The Council appreciated
the efforts that had been
in place to move Nigeria
away from recession. Now,
gradually we are getting it
right and Council noted
that what is being done is
good.
“Council also noted what
was being done in the area
of agriculture; how Nigeria
moved from one monolithic
economy to now a diversified
economy.
“Council noted that there
is still more to be done. It
was advised that we should
improve on the funding and
increase the funding on
agriculture and it was paltry
about 200 million dollars.
“But, if you compare that
side by side with what we
are investing, what we are
pumping into the area of
oil, the monolithic economy
that we have running, we
noticed that it is just insignificant.
“So, the Council recommended
that at least about a
billion dollar should now be
pumped into agriculture,’’
he added.
Amosun said that the
council noted how Nigeria
moved the budget from
about four trillion naira to
now about eight trillion
naira.
He said: “It also noted
that when President Muhammadu
Buhari came
in, he was jostling at a very
deep because oil had nosedived
from 112 dollars in
2014 and in 2016 it was 30
dollars.
“Council also appreciated
the efforts of the Ministers
of Agriculture and
that of Budget and National
Planning after their briefings,
on the efforts they are
giving to Mr President and
agreed they should continue
in what they are doing.’’
Fidelity Bank’s Corporate governance
certification will boost investments – Ebi
Fidelity Bank Plc has
expressed optimism
that the Corporate
Governance Rating
System (CGRS) certification
of the bank and its directors
will boost investors’ confidence
and enhance business
opportunities.
Mr Ernest Ebi, the bank’s
Chairman, stated this in an
interview with the News
Agency of Nigeria (NAN)
in Lagos on the sidelines
of CGRS certification ceremony
by the Nigerian Stock
Exchange (NSE) and the
Convention on Business Integrity
(CBI).
Ebi said that the bank
would leverage on the
gains of the certification to
strengthen business opportunities
to ensure maximum
returns to its stakeholders.
According to him, the
CGRS will open a lot of business
opportunities for the
bank.
He said the bank would
not rest on its oars.
“You know the beautiful
thing about this certification
is that it boosts investors’
confidence in the bank, because
when they know that
you have been through this
process, there is a lot to gain.
“Going through the test
itself brings out a lot of issues
about corporate governance,
investor relations, among
others. “So, for eleven directors
to go through this process,
it is going to be a great
morale booster for us and
will encourage a lot of investors
to look to our direction,”
Ebi said.
He said that the bank
would maximise all available
business opportunities
by engaging investors for
desired growth and development.
The chairman said that
capital, risk management
and corporate governance
are three things upper most
in the minds of the bank’s
board and management.
He explained that the
bank would remain committed
to good corporate
governance practices for
competitiveness.
NAN reports that Fidelity
Bank and its directors were
among 35 companies and
437 directors that made over
the 70 per cent threshold for
CGRS process.