After nearly three decades of instability and near liquidation, Okitipupa Oil Palm Plc released its audited full-financial year 2020 for the year ended December 31, 2020, which showed a significant return to profitability and also propose to pay dividends to its shareholders.
Chief Mobolaji Osomo, Chairman of the Board of Directors, made this disclosure at the 31st Annual General Meeting (AGM) of the company held on Tuesday, 22nd June 2021 in Lagos.
Key financial metrics:
- The oil palm producing company emerged from a period of recurring losses for over a decade returned to a major turnaround with an unprecedented turnover of N548,216,198.00 in 2020 compared to N281,179,000.00 in 2019, a significant 94.97% increase in revenue.
- In respect of the current year, the Directors recommend for approval a dividend of 25 kobo per 50 kobo ordinary share amounting to N24,000,000 subject to the deduction of Withholding Tax at the appropriate rate, 27 years after it last paid one.
- In the same period, Brand Spur learnt that the company made a commendable profit after provision for tax and dividend payment in the sum of N229.8 Million in 2020 against a profit of N3.6Million in 2019.
- However, this is attributable to a change in its business strategy driven by a new agricultural operations model undertaken to re-position the company which is being consolidated in 2021 and certain to producing even far significant results.
| 2020 N’000 | 2019 N’000 | |
| Revenue | 548,216 | 281,179 |
| Profit/(Loss) before Tax | 256,458 | -65,920 |
| Profit/(Loss) after Tax | 244,465 | 3,552 |
| Selling, General & Admin. Expenses | -223,138 | -139,294 |
The rollout of Recovery plans
In order to sustain these encouraging trends, strategies have been developed to completely rescue the company’s plantations from the claws of the unauthorized persons who had been exploiting them without let or hindrance for over 2 decades.
The successful implementation of these strategies will increase the exploitable plantation resources, increase the profits through effective control of cost and also maintain respectable and sustainable growth.
The board, during the course of the restructuring exercise, has taken steps to qualify the company for the Central Bank of Nigeria (CBN) agricultural loan facilities which the apex bank has encouraged organisations such as ours to seek in order to inject affordable and necessary funds for the restructuring and revival of the company.
The management of the company believes that the company is ripe for much-needed funds to be injected into the company and would leave no stone unturned to access this facility, in conjunction with subsequent rounds/series of financing will catapult the company back to the apex of oil palm producing companies in Nigeria.
Increase in the share capital
In the light of the above, the Board has called on its shareholders to approve strategic measures being undertaken to bring about the monumental changes the company desires which have been captured in several resolutions being laid before them at this annual general meeting.
The measures include but not limited to the resolutions for the increase in the share capital of the company from N50,000,000.00 to N1,000,000,000,000.00 as well as the approval of the Core Investor Sale Exercise geared towards the injection of fresh capital and technical expertise in the Company.
Principal Activities of the company
The principal activities of the Company are the development of oil palm plantations, palm oil milling, palm kernel processing and vegetable oil refining. The products of the Company are: refined bleached and deodorized palm oil, palm olein, palm stearin, palm fatty acid distillate, palm kernel oil (crude and refined) and palm kernel cake.
Okitipupa Oil Palm PLC was incorporated as a limited liability company on the 17th day of May 1976 to take over the Okitipupa Oil Palm Project under the management of the Nigerian Joint Agency Limited. In 1980, the company was brought under the supervision of the Governor’s Office.
In May 1987, the Ondo State Investment (Holding) Company Limited was established and vested with all the State Government’s interest in Okitipupa Oil Palm Company Limited. The company became Public Liability Company in the year 1993.
