Thursday, June 27, 2019
Home > News > Okomu Oil Shareholders to Receive N2.8bn

Okomu Oil Shareholders to Receive N2.8bn

The management of Okomu Oil Palm Company Plc has announced a dividend payment of N2.8 billion after tax to its shareholders.

The company which is located at Udo Community in Ovia South West Local Government Area of Edo, according to its  Chairman, Mr Gbenga Oyebode, made the announcement at the company’s 2017 annual report and accounts, in Benin.

He said the feat was made possible due to the prudent management of the company. “As a result of the excellent results delivered and to ensure that our shareholders remain participants in the success of the company, the Board of Directors recommends for approval, a dividend payment of N3.00k per ordinary share, or a total dividend of nearly N2.8 billion.

“During the year under review, the results of the company recorded combined turnover totaling N20.2 billion which amounts to an increase of 40 per cent on 2016 turnover.

“Direct costs of sales were 36 per cent higher than 2016 at N4.9 billion, generally in line with inflation and the Naira devaluation,’’ he said.

According to him, in 2017, the company also paid more than N2 billion in taxes to federal agencies up from N948 million paid in 2016.

“This translated into a total comprehensive income of N8.9 billion in 2017, this being 78 per cent better than the N4.9 billion total comprehensive income recorded in 2016,’’ he said.

Oyebode explained that although there were some improvements from the previous year, “2017 still presented numerous challenges to the business environment with a contraction monetary policy, high levels of inflation and unemployment.

“However, government’s action to reign in excessive budgets and improve foreign liquidity as well as an increase in oil prices helped bring the economy out of recession this year.

“We also saw improved rubber and crude palm oil (CPO) prices this year, with increases of 24 per cent and 44 per cent respectively. This combined with fiscal discipline displayed by the management, saw the company delivering excellent record.

“The consolidated profits on continuing operations after tax saw an increase of 78 per cent on the 2016 results.

“Turnover also increased by 40 per cent from 2016, which saw the company take up position as one of the top 10 companies with the highest turnover on the Nigerian Stock Exchange in 2017.’’

On its operations in the year under review, Oyebode noted that as at the end of 2017, the total oil palm area was 17,244 ha, of which 7,371 ha with new plantings were yet to mature. “Plantation cost for the year was 28 per cent higher than for 2016,’’ he added.

“Production of crude oil palm from the oil mill was two per cent higher than 2016’s production, with oil extraction rates averaging approximately 22 per cent.

“However, the oil mill costs for 2017 were 37 per cent higher than the previous year, predominantly driven by the increased costs of imported spare parts as a result of the devaluation of the Naira.

“Despite increased costs, the company recorded increased palm oil products turnover, up to 40 per cent on 2016 and increased net profit from palm product operations of 55 per cent on the previous year,’’ he said.




Egina:  Flagship Project for Total, Nigeria

Egina  in which Total of France oil and gas major operating in Nigera has an equity share of 24 percent in joint ventuer with  China’s CNOOC, Petrobras and Sapetro  is an ultra-deep offshore field  that will start streaming this year, 2018 with an output of about 200,000 barrels per day.

The field is located some 130 km off the coast of Nigeria at water depths of more than 1,500 m,  and it is known as  one of our most ambitious ultra-deep offshore projects in the oil and gas industry of the nation.

The project, is known be, for the most part,  being developed locally to accelerate the pace of technology transfer and expand the local industrial fabrication in the country.

The company  began the drilling program on the Egina field in December 2014 and it is known to have concluded arrangements to carryout  intense project drilling which will keep two rigs busy for a total of 3,000 days.

Already,  Five out of the planned 44 subsea wells have already been drilled, at water depths of between 1,400 m and 1,700 m, and 13 more will be completed when the field comes on stream.

According to the company these will be connected, using umbilicals and risers, to an FPSO (floating production, storage and offloading vessel) designed to hold 2.3 million barrels of oil.

Jean-Michel Guy,Executive General Manager of the Egina project, informed that the water depth poses a challenge for the development of Egina, which is one of the deepest offshore projects ever operated by Total.

Speaking of the corporate social responsibilty of the company with regards to the project, he said “Egina is a flagship project for Total, and it is above all a Nigerian project. At Total, our commitment to our host countries is one of the keys to our success.We have taken up the ambitious challenge of playing a role in sustainably developing the local industrial fabric by bringing together international companies and local contractors. ”

“The idea is to accelerate the pace of technology transfer by training Nigerian employees (more than 410,000 hours in all). This win-win situation should enable Total and Nigeria to productively pursue a partnership that began more than 50 years ago.””Practically speaking, 21 million man-hours will be worked locally, corresponding to 70% of the total hours planned for the project.”

” Some 58,000 metric tons, or 34% of equipment will also be produced locally. In addition, infrastructure will be developed and built in the country, including a 500 m long quay to assemble the FPSO. Afterwards, the quay will be available for other industrial projects,” he added,project.

However, Nigeria’s Senate Ad hoc Committee on Investigation of Local Content Element on the $16billion Egina  Egina Oil Field and other related Projects has directed the suspension of further variations on the Total Upstream Nigeria Limited 16.3 Billion dollar Egina Deepwater Oil Project.

The Chairman of the committee, Sen. Solomon Adeola, gave the directive in a statement by his Media Adviser, Mr Kayode Odunaro in Abuja .

Adeola said the directive followed Senate’s resolution to pay consultants to do a ”Value for Money Audit” of the Egina project.

He said after a two billion dollar variation on the project, there was proposal for another one billion dollar variation.He stressed that there was need to get detailed explanation of the variations by various sub-contractors to Total Upstream Nigeria Limited, the major operator of the project.

He said: “The audit would last for 16 weeks by consultants paid by the Senate to ensure independent account instead of being carried out by NNPC/NAPIMS as required by the contractual agreement,” and condemned the fact that over the five- year period of the project no audit of any kind has been carried out.

Managing Director of Total Upstream Nigeria Limited, Mr. Nicolas Terraz, stated that as the major operator of the project, it would continue to assist the committee in its investigations.

Meanwhile, Adeola said the committee would report the illegal status of one Young Ho Jo, to the Ministry of Interior.

Adeola said findings indicated that Jo, claimed to be the Managing Director of Samsung Nigeria Limited and had been working in Nigeria for the past two months without fulfilling legal requirements.

He stressed that the Nigeria Content Development Monitoring Board (NCMDB) had reported  the alleged illegality to the Ministry of Interior for possible deportation as an illegal immigrant.

“The man came to us to say he is the MD of Samsung and his documentation could not be completed because of the breakdown of the machines of NCMDB.

“Meanwhile the NCMBD wrote to us saying that their machine had never broken down in the period claimed, showing that the man had contravened the Local Content law,”he said.






Nestlé Nigeria PLC Partners IFDC for Healthier Grains Growth

Nestlé Nigeria PLC,  has gone into partnership with the  International Fertilizer Development Centre (IFDC) / 2Scale, in order to help Nigerian farmers improve their livelihoods by empowering smallholder farmers on sustainable farming practices under the initiative, Nestlé Nigeria & IFDC/2Scale Project Sorghum & Millet.

According to the company,  the partnership aims to improve grain quality and productivity.

It added that it, “together with its implementing partners, has made significant impact in the past two years, training over 7905 sorghum and 1069 millet farmers on good agricultural pre-harvest and post-harvest practices. 22% of these farmers are women. The farmers testify to a significant increase in income. This change is due to an increase in productivity, improved crop quality and the availability of a ready market, which eliminates the negative influence of middlemen.”

Before Nestlé Nigeria & IFDC/2Scale Project Sorghum & Millet’s intervention, the yield per hectare was 0.9 tons.

In the first year of the project in 2015, the yield doubled to 1.3 tons/hct, and reached 1.8 tons/hct in 2017. The target is to reach 2.20 tons/hct in 2018 farming season, progressing towards the maximum yield capacity of 2.35 tons/hct of the crop varieties.

Another contributor to the increase in income is the improved negotiating skills of farmers, an outcome of the business training and coaching they have received. The coaching sessions have led to farmers becoming much more confident about their position and the quality of their products. For women producers, this has had an especially strong impact. One example of this can be found in Mrs. Hanna Musa, one of the two women in the negotiations team. Prior to the coaching, she had been too shy to speak up, but the opportunity to participate in the negotiations on Nestlé’s terms of delivery and payment, helped her grow into her leadership role.

Speaking on the drivers of the outcome of Nestlé Nigeria & IFDC/2Scale Project Sorghum & Millet, Mr. Maxwell Olitsa, Project Manager, IFDC said, “We achieved the results in the field by empowering farmers to adopt best practices and new technology. Showing in addition to telling also made a lot of difference. 27 demo plots were established; six of them managed by women, where best farming practices are demonstrated. The demo plots are always accessible to the farming clusters to provide continuous technical support and coaching in the field.”

To ensure crop integrity from farm to factory gate, the project also trains aggregators, pesticide spray providers and input suppliers. This 360-degree approach has significantly reduced post-harvest losses.

He said that,”While helping to improve the livelihoods of farmers within the project, Nestlé projects that the continued intervention with its partners will result in sustainable supplies of high quality grains required for its production sites.”

Emphasizing on the impact of the project on the livelihoods of farmers and on the company, Mr. Mauricio Alarcon, CEO/Managing Director, Nestlé Nigeria said, “Today, we source about 80% of our agricultural raw material in the country. As we work towards increasing this percentage, we remain committed to working alongside our partners to further improve the quality and quantity of grains and legumes”.

“The results we have achieved so far with Nestlé Nigeria & IFDC/2Scale Project Sorghum & Millet is an example of what is possible when we look at the agriculture value chain holistically from the farm to storage, to transportation, and right down to the factory gate and take definite measures to close the gaps,” he concluded.

This partnership is consistent with Nestlé’s business approach of Creating Shared Value for the company and for society. On one side, the project ensures that the local supply of grains and legumes meet the company’s high food safety and quality standards, while it helps increase the revenue of farmers who have higher yields by applying good agricultural practices.

One of the ways the company works towards achieving its purpose which is, “enhancing quality of life and contributing to a healthier future”, is by helping to reduce crop contamination and post-harvest losses resulting from poor farming practices including sun drying, poor storage and logistics. This is important because crop contaminants, like mycotoxins, threaten the health and lives of humans and animals.




P&G Acquires Darmstadt 

In an effort to strengthen its  Portfolio, Category Footprint in Top 15 Global OTC Markets replaces and Improves Upon Successful PGT Healthcare Joint Venture Procter and Gamble has acquired Consumer Health portfolio and people of Merck KGaA, Darmstadt, Germany, to its family.

The Procter and  Gamble Company (NYSE:PG), recently,announced that  it has signed an agreement to acquire the Consumer Health business of Merck KGaA, Darmstadt, Germany, for a purchase price of approximately 3.4 billion euro.

This acquisition, it said,  enables P&G to expand its successful consumer health care business by adding a fast-growing portfolio of differentiated, physician-supported brands across a broad geographic footprint. It also provides P&G with strong health care commercial and supply capabilities, deep technical mastery and proven consumer health care leadership that will complement P&G’s existing consumer Health Care capabilities and brands such as Vicks, Metamucil, Pepto-Bismol, Crest and Oral-B.

David Taylor, Chairman of the Board, President and Chief Executive Officer, said , “We like the steady, broad-based growth of the OTC Health Care market and are pleased to add the Consumer Health portfolio and people of Merck KGaA, Darmstadt, Germany, to the P&G family.”

P&G’s acquisition of the Consumer Health business of Merck KGaA, Darmstadt, Germany, will improve P&G’s OTC geographic scale, brand portfolio and category footprint in the vast majority of the world’s top 15 OTC markets. These brands provide great solutions in relieving muscle, joint and back pain, colds and headaches, as well as supporting physical activity and mobility, many of which are treatment areas not currently addressed in P&G’s portfolio.

Steve Bishop, Group President, Global Health Care, however, added that, “Over the past few years, our Health Care business has delivered consistent growth and strong shareholder value creation.“ “The Consumer Health business of Merck KGaA, Darmstadt, Germany, brings a strong set of brands, products and capabilities, and provides an attractive and complementary footprint to further fuel growth as we continue to grow our existing leading brands.”

The acquisition of the Consumer Health business of Merck KGaA, Darmstadt, Germany, replaces and improves upon the highly successful PGT Healthcare joint venture P&G had with Teva Pharmaceutical Industries (NYSE: TEVA), which will be terminatedJuly 1, 2018, pending regulatory approvals.

The PGT Healthcare joint venture delivered disproportionate top- and bottom-line growth and established a major presence in over 50 countries since its formation. However, following a recent review, Teva and P&G concluded that priorities and strategies were no longer aligned and agreed to terms where it would be mutually beneficial to terminate the partnership. PGT product assets will return to their respective parent companies to reestablish independent OTC businesses.

The $1 billion Consumer Health business of Merck KGaA, Darmstadt, Germany, grew 6% over the past two years and provides a broad range of OTC product remedies to relieve muscle, joint and back pain, colds and headaches as well as products for supporting physical activity and mobility. Top brands include Neurobion, Dolo-Neurobion, Femibion, Nasivin, Bion3, Seven Seas and Kytta, along with many others. These are sold primarily in Europe, Latin America and Asia.

“These leading brands and the great employees of the Consumer Health business of Merck KGaA, Darmstadt, Germany, will complement our Personal Health Care business very well,” said Tom Finn, President, P&G Global Personal Health Care. “This acquisition helps us continue to drive sales and profit growth for P&G by providing the capabilities and portfolio scale we need to operate a winning global OTC business on our own, without the aid of a health care partner.”

“The divestment of our Consumer Health is an important step in our strategic focus on innovation-driven businesses within Healthcare, Life Science and Performance Materials. It is a clear demonstration of our continued commitment to actively shape our portfolio as a leading science and technology company,” said Stefan Oschmann, Chairman of the Executive Board and CEO of Merck KGaA, Darmstadt, Germany. “Consumer Health is a strong business that deserves the best possible opportunities for its future development. With P&G we have found a strong, highly recognized player who has the necessary scale to successfully drive the business going forward.”

“P&G’s global scale and strategic interest in the health and well-being of consumers provide an excellent basis for accelerating growth, leveraging our teams’ capabilities and expanding the Consumer Health business profitably. The marketed portfolios, product pipelines and geographic footprints of both businesses are highly complementary,” said Belén Garijo, Member of the Executive Board of Merck KGaA, Darmstadt, Germany, and CEO Healthcare. “With this transaction, we continue to rigorously deliver on our strategy to become a global specialty innovator and bring breakthrough medicines to patients.”

The Consumer Health business of Merck KGaA, Darmstadt, Germany, is active across 44 countries and includes more than 900 products. P&G is targeting to close this deal during the 2018/19 fiscal year, subject to customary closing conditions and regulatory clearances.

P&G serves consumers around the world with one of the strongest portfolios of trusted,quality, leadership brands, including Always, Ambi Pur, Ariel, Bounty, Charmin, Crest, Dawn, Downy, Fairy, Febreze, Gain, Gillette, Head & Shoulders, Lenor, Olay, Oral-B, Pampers, Pantene, SK-II, Tide, Vicks, and Whisper. The P&G community includes operations in approximately 70 countries worldwide.





Cooking Gas: NIPCO Goes on Awareness Drive  

In demonstration of its commitment to promoting use of gas as domestic cooking fuel, NIPCO plc , the company setup by  amalgamated association of independent petroleum marketers has stepped up its campaign to create awareness and sensitise  the Nigerian populace on the benefits  of  switching to gas as a solution to reducing the environmental hazard of other household fuel for  cooking .

At a special event organized by the Federal Ministry of Environment [FME] to mark World Environment Day [WED] as part of its resolve to drive LPG use, the company presented LPG gas accessories to the overall best school.

The event which was  held at the games village FME Lagos liaison office which had participants from schools and other stakeholders across the state in attendance featured three categories of competition tailored around reduction of pollution in our environment.

The forum provided a veritable avenue for the company to educate and promote safe use of LPG as cooking fuel as well as supporting schools to imbibe in their parents the lofty benefits of switching to gas as a preferred fuel for households.

In a goodwill message to the event, Managing Director, NIPCO, Sanjay Teotia said supporting the yearly World Environment Day Celebration is key to the company’s efforts at promoting g safe and habitable environment across the state in particular and the country in general.

The MD who was represented by Head LPG Operations, Engr Kamal Badmus said lots of initiatives are being put in place by the company to further encourage the populace to see gas as a safe and affordable cooking fuel.

He noted that aside from the inherent benefits of switch to gas over other cooking fuels like kerosene, NIPCO has also  proactively prepared safety pamphlets  to address some of the safety issues being raised on LPG use

According to him , the safety tips addressed some of the misconceptions about gas which had scared potential users of LPG  especially its handling cooking gas accessories like cylinders ,burners etc .

He noted that some of the fears being expressed by the populace are frustrating efforts to encourage Nigerians to switch over from use of kerosene, firewood and charcoal to the use of LPG.

The MD assured participants at the event that some of the negative notions about gas usage are addressed in the pamphlets as part of the company’s corporate social responsibility initiatives in pursuing a meaningful switch to gas as cooking fuel .

Sanjay urged everyone to come together to explore alternatives to end all kinds of pollution citing use of gas as one instead of the old ways of relying heavily on firewood with  plastics as catalyst to faster burning .

The Federal Controller, FME, Lagos, Mrs. Oluwatoyin Agbenla said the theme of this year WED “Beat Plastic Pollution “ was to draw the attention of stakeholders to the need to beat the unending pollution caused by inappropriate disposal of plastic materials .

She sponsors including NIPCO for their support some of whom dates back to over a decade adding that the presentation of gas accessories to the best school in the completion as part of the WED events is noteworthy and a commendable act by the company.

Maidic Schools, Alagbado in Alimosho was adjudged the overall best school in the competition and was presented full set of LPG accessories including 12.5kg cylinder .multiple gas burner and regulator by the company’s representative among other support initiatives for the successful hosting of the event .

Responding, head of delegation of the school, Emma Dike said the cooking gadgets will be a boost to their home economics laboratory where  basic culinary in the school are practiced


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