Shell assets sale may take one year – CFO

SHELL LOGO

The Chief Financial Officer, Shell, Mr. Simon Henry, has said that the oil major  may not complete its sale of assets in Nigeria until 2015 while expressing fears that the coming general elections may complicate the transactions.

Shell Petroleum Development Company has put up for sale four oil blocks – OML-18, OML- 29, OML-25 and OML-24 and the bidders are Midwestern/Mart/Notore, Sahara Consortium and Dangote/Dansa for OML-18; Vertex/ Seplat/Maurel&Prom/VP Global, Glencore/Neconde, Transcorp, and Aiteo/Taleveras for OML-29.

Others are Lekoil, Crestar, GreenAcres/CCC/Signet Petroleum, NDPR/SAPETRO and Essar for ML-25.

Sahara Consortium, PanOcean/Newcross, Shoreline Aiteo/ Taleveras are also bidding for OML-24.

The company said  it hoped to make $15bn in disposals worldwide in 2014 and 2015, the sale of its stake in four oil blocks in the Niger Delta are expected to generate  part of the target revenue from asset divestment.

According to him, an election planned for February can have an impact on the sale process, without specifying in what way.

He said the Nigerian assets had attracted strong interest from potential buyers.

Shell is divesting 30 per cent of the four blocks, along with the sale of 10 per cent from Total and five per cent from Eni. Analysts have estimated the value of the combined 45 per cent at around $3bn.

In the over 70 years that Shell has operated in the county, it has faced serious problems on the Delta with oil theft, environmental damage, political protests and attacks on its facilities.

As part of any deal, the oil major wants minimise its exposure to further risks there.

Mansard Insurance’s results excite shareholders

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Shareholders of Mansard Insurance Plc have lauded the board and management of the company for its impressive 2013 financial performance.

The insurance firm ended the 2013 with 31 per cent growth in profit after tax and paid a dividend of eight kobo per share in an industry that some companies failed to pay dividend.

Buy speaking at the annual general meeting in Lagos, the shareholders commended the performance. For instance, Alhaja Ayodele Kudaisi of Independent Shareholders Association of Nigeria (ISAN) said: “We are happy to receive this result from you despite the ‘No Premium, No Cover’ enforcement.

In his speech, Chairman of Mansard Insurance, Mr. Victor Gbolade Oshibodu, said the company grew gross premium written to N13.59 billion, from  N12.44 billion in 2012. Profit after tax rose from N1.6 billion to N2.1 billion.

Explaining the eight kobo dividend, Oshibodu said it was in line with the company’s   assurance to continually deliver exceptional value to shareholders.

Commenting on the results, Chief Client Officer  of Mansard Insurance,  Mr. Tosin Runsewe, said “we achieved growth in a difficult year where the industry experienced a decline in growth rate which was stifled by ‘No Premium, No Cover’ regulation.

According to him, overall,  the company achieved  31 per cent  increase in net earnings as a result of significant growth in income from our increasingly diversified investment base.

Speaking in the same vein,   Chief Financial Officer of the company, Rashidat Adebisi said: “This is the first time since our renaissance that we would record single digit growth, but we understand the difficulties of 2013.

She said the company found 2013 financial year interesting as retail business was a major driver of both revenue and profit.

Nigerian Breweries records N14.7bn profit in three months

Nigerian Breweries

Leading brewing firm, Nigerian Breweries Plc, has announced a profit before tax of N14.7 billion for the in the first quarter ended March 31, 2014, showing an increase of 8.3 per cent over the N13.59 billion recorded in the corresponding period of 2013.

Nigerian Breweries showed resilience in the face of challenging operating environment and ended the Q1 with revenue of N68.97 billion, up by 6.8 per cent from N64.57 billion recorded in 2013.

Cost of sale, distribution and administrative expenses went up. But the company was able to reduce its finance charges by 43 per cent, decreasing from N1.592 billion to N907 million.

Consequently, Nigerian Breweries posted a profit before tax of N14.71 billion, up from N13.58 billion in the corresponding period of 2013. Profit after tax also rose from N9.416 billion to N10.1 billion.

Earnings per share improved from N1.25 to N1.33, raising hope of a higher dividend pay-out at the end of the year.

The Company Secretary and Legal Adviser, Nigerian Breweries, Mr.  Uaboi  Agbebaku, said in a statement barring any unforeseen circumstance, the Board expects that the positive result recorded in the Q1 will be sustained in the next quarter.

Nigerian Breweries had a successful 2013, recording net profit of N43.1 billion, while the directors recommended gross dividend of N34 billion, translating into N4.50 per share.

The Managing Director/Chief Executive Officer of   the company, Mr. Nicolaas Vervelde, had explained that  the company recorded a revenue of N269 billion and profit before tax of N62.2 billion, showing an increase of 6.3 per cent and 11.9 per cent over the N252 billion and N55.6 billion respectively recorded in 2012.

According to him, Nigerian Breweries maintained its leadership position in the market in spite of the challenging operating in environment in 2013.

Access Bank to raise $1bn fresh capital

ACCESS BANK LOGO

Shareholders of Access Bank Plc has endorsed the plan by the bank to raise $1 billion to enhance its operations.

The bank stated that the fund would be raised in tranches and time to be determined by its directors, through the issuance of a Medium Term Note Programme.

The fresh capital, according to Access Bank would support its objective of being ranked as one of the top three banks in the industry.

Additionally, following its designation as one of the Significantly Important Financial Institutions by the Central Bank of Nigeria (CBN), Access Bank was expected to have additional one per cent buffer of tier-1 capital.

Speaking at the bank’s 25th annual general meeting in Lagos, Group Managing Director/Chief Executive Officer, Access Bank, Mr. Herbert Wigwe assured shareholders that the capital raising would not destroy the value of their investment.

He however declined to comment on when the capital would be raised.

Wigwe explained: “The most important thing is that should we need more money in the future, in a timely manner, it would be easier to access the market.

On his part, the Access Bank’s Chairman, Mr. Gbenga Oyebode noted that the board had considered a variety of available capital raising options and came to the conclusion that having the option of raising additional financing of up to $1 billion or its equivalent in local currency would be the most cost-efficient option to meet the its capital adequacy objectives.

Furthermore, Oyebode pointed out that the injection of fresh capital into the bank’s operations would accelerate the attainment of its aspiration of becoming the “World’s Most Respected African Bank.”

Meanwhile, the shareholders also unanimously approved the re-election and election of new Directors to the Bank’s Board. The new directors are Mr. Paul Usoro and Dr. Ajoritsedere Awosika.

Commenting on the bank’s performance, the Chairman, Shareholders Trustee Association of Nigeria, Alhaji Mukhtar Mukhtar said: “Amidst the changes experienced in the operating environment, the ability of the bank to grow deposits is impressive and highly commendable.”

Also, the President, President, Solidarity Shareholders Association of Nigeria (SSAN), Dr. Farouk Umar described that the total dividend payout of N8 billion by the bank as a demonstration of responsibility and fulfillment of the promise of creating value for shareholders.

An analysis of the bank’s results for the year ended December 31, 2013 showed an increase in its deposit base from N1.201 trillion at the end of 2012, to N1.33 trillion in the year under review, while its loan book rose impressively by 33 per cent from N609 billion in 2012 to N810 billion in 2013, showing the bank’s commitment to empowering critical sectors of the economy.

Similarly, the bank recorded an improvement in its cost of funds from 4.5 per cent to 4.6 per cent while Non-Performing Loans (NPL) ratio decreased to 2.7 per cent from five per cent.

ASO ROCK

Hello! Aso Rock! Is Anyone There? An Open Letter To The President Jonathan

Dear Mr. Jonathan,

With a troubled spirit, a bleeding soul and a broken heart I write you this letter. I pray that you receive the message with an open mind and with little regard to the messenger.

My spirit is troubled by the unprecedented level of insecurity in our fatherland where preventable wanton loss of precious lives in droves is clearly becoming a norm. No one feels safe anymore since we cannot be sure of when, where and how the terrorists will strike next. A nation once the pride of her citizens is fast drifting to a pariah state.

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