Economy Maritime

NNPC subsidiary declares N15.8bn after Tax Profit

Written by Maritime First
  • As Equities market set to maintain positive momentum this week

A subsidiary of the Nigerian National Petroleum Corporation (NNPC), the Nigerian Gas Processing and Transportation Company Ltd. (NGPTC), has declared a profit after tax of N15.81 billion for its 2016 operations.

The NNPC disclosed this in Abuja on Sunday in a statement by the corporation’s Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu.

Ughamadu explained that the profit was due to the write-back of deferred tax of N8.05 billion in 2015 and part of the dividends of the ongoing transformation.

The Chief Operating Officer and Chairman of NGPTC, Mr Saidu Mohammed, disclosed that the profit before tax for the year ended Dec. 31, 2016 was N24.4 billion as against N20.9 billion in 2015.

“This represents an increment of 16.8 per cent, while the profit after tax reduced from N22.6 billion in 2015 to N15.81 billion in 2016.

“Also, earnings per share reduced from N4,510 in 2015 to N3,163 for 2016.

“The total revenue generated from gas sold and transmitted during 2016 amounted to N219.5 billion as against N155.5 billion in 2015, representing a 41 per cent increase over the previous year,” he said.

Ughamadu said that the increase was due to revenue generated from application of higher transportation tariff and new commercial customers that came on stream.

“An overview of NGPTC’s business performance for the year 2016 shows that 307 billion standard cubic feet (bscf) of gas was sold and transmitted as against the planned 463 bscf, thereby achieving 66.4 per cent of its target.

“The year 2016 also reveals a performance of four per cent below the volume of 319.25 bscf sold in 2015,” the public affairs manager said.

He noted that the company was confronted with the challenges of incessant vandalism of the Escravos-Lagos Pipeline System 1 (ELPS 1), Trans Forcados pipeline and evacuation bottleneck of condensate in 2016.

He acknowledged the continued support of NGPTC’s host communities for the sustained peace and tranquility in the company’s areas of operation.

The NGPTC, formerly Nigerian Gas Company (NGC) Ltd., a fully-owned subsidiary of the NNPC, was incorporated in 1981 and commenced business in 1988.

NGC was renamed NGPTC in 2016 with a mandate to process and transport natural gas domestically and for export.

In the meantime, the Nigerian equities market is expected to maintain positive momentum this week as investors awaits the  2017 third quarter results for companies listed on the Nigerian Stock Exchange, NSE.

Financial analysts have stressed that the beginning of the trading day will likely witness rally in blue chip stocks whose performance are likely to be in green.

Nigerian Stock Exchange Analysts from Vetiva Capital Management Limited, have said: “We expect the positive market momentum to persist at the start of this week, and further demand on blue chip stocks.” Continuing the analysts stated; Stock to watch during the week is Presco Plc, which has advanced 15 per cent in the last two sessions, rallying to ¦ 68.00, and is below consensus target price of ¦ 80.76.

The stock has returned 70 per cent Year to Date,   ytd.” Analysts from Cowry Asset Management Limited, said : “This week, we anticipate a combination of bullish and bearish activities amidst low investor expectations in the short term.

Meanwhile, analysis of the NSE equity performance last week showed that amidst firmly improving positive market sentiment, the market ended trading week firmly in the green as   NSE   All Share Index, ASI up 153bases points bps and market capitalization up by 2.34 per cent. Meanwhile, a total turnover of 1.493 billion shares worth N15.107 billion in 14,549 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.326 billion shares valued at N14.086 billion that exchanged hands penultimate week in 14,703 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.288 billion shares valued at N10.121 billion traded in 8,334 deals; thus contributing 86.30 per cent and 66.99 per cent to the total equity turnover volume and value respectively.

The Consumer Goods Industry followed with 89.259 million shares worth N3.154 billion in 2,760 deals. The third place was occupied by Conglomerates Industry with a turnover of 49.361 million shares worth N113.737 million in 491 deals.

Trading in the top three   equites. namely – FCMB Group Plc, Diamond Bank Plc and FBN Holdings Plc (measured by volume) accounted for 659.042 million shares worth N1.312 billion in 1,933 deals, contributing 44.14 per cent and 8.69 per cent to the total equity turnover volume and value respectively.

Thirty-eight (38) equities appreciated in price during the week, higher than thirty-two (32) of the penultimate week. Twenty-six (26) equities depreciated in price, lower than thirty-two (32) equities of the penultimate week, while one hundred and seven (107) equities remained unchanged same as one hundred and seven (107) equities recorded in the penultimate week.

Additional report from Vanguard

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Maritime First