Insider Dealing: Heineken Brouwerijen B.V Purchases 274,542 Shares in Nigerian Breweries

Esan Bolaji
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Insider Dealing: Heineken Brouwerijen B.V Purchases 274,542 Shares in Nigerian Breweries

Nigerian Breweries Plc, a leading brewing company in Nigeria on Friday disclosed a share dealing by an insider involving its core foreign investor, Heineken Brouwerijen B.V that purchased 274,542 units at N35.76 per unit (average) which amounted to N9,817,621.92 

In a notification signed by Uaboi G. Agbebaku, Company Secretary released by the Nigerian Stock Exchange, Heineken Brouwerijen B.V made the purchase between 11th -13th August 2020 while Chief Jamodu purchase was on 13th August 2020, both in transaction done at NSE, Lagos.

Breakdown of the transactions

Heineken Brouwerijen B.V bought these additional shares at three different prices and volumes between August 11 to 13, 2020. These transactions were executed at the stock exchange in Lagos and they averagely amounted to N9.8 million.

  1. The foreign investor bought 125,964 shares at a unit price of N33.92, amounting to N4.3 million
  2. Heineken Brouwerijen B.V added 62,339 units at N36.35 each and this amounted to N2.3 million and
  3. Lastly, it acquired additional 86,239 stocks at N37.00 per unit, resulting in N3.2 million.

Nigerian Breweries’ Shareholding Structure

Prior to this transaction, Heineken N.V Group still holds majority shareholding (55.95%) of the Company through its 100% owned subsidiaries – Heineken Brouwerijen B.V (37.76%), Distilled Trading International B.V (15.47%) and Heineken International B.V (2.72%) as at 31 December 2017. Stanbic Nominees Nigeria Limited (13.28%) and other individuals & institutional investors (30.77%) held the remaining issued shares as at the same date.

Breakdown of the transaction

Insider Dealing: Heineken Brouwerijen B.V Purchases 274,542 Shares in Nigerian Breweries

Nigerian Breweries recently released its Q2’20 results, reporting a 17.5% q/q slump in topline to ₦68.7 billion. Despite a better than expected performance amid a significantly tougher operating environment, the weaker Q2 performance took H1’20 Revenue to ₦151.9 billion, a 10.8% step-down from its H1’19 performance.

Despite 51 transactions involving 148,636 shares valued at N5,455,765.10, there was no movement on the share price of NB on the NSE on Friday at N36 per share.

Nigerian Breweries Plc is the pioneer and largest brewing company in Nigeria. It serves the Nigerian market and exports to other parts of West Africa.

Westgate Technologies unveils 600 capacity CBT centre in Asaba

Esan Bolaji
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Westgate Technologies unveils 600 capacity CBT centre in Asaba

Governor Ifeanyi Okowa of Delta State has commissioned a Westgate Technologies ICT Centre in the state capital, Asaba and restated the desire of his administration to continue to provide the enabling environment for investment to thrive.

The Governor urged potential investors to take advantage of both human and natural resources of the state as well as its peaceful ambience to invest in several human endeavours across the state.

Westgate Technologies unveils 600 capacity CBT centre in Asaba
L-R: Chairman/Chief Executive Officer, Westgate Technologies, Casmir Ezeudu, Delta State governor representative/Commissioner for Science and Technology, Matthew Itsekiri and Delta State Commissioner for Finance, Fidelis Tilije commissioning Westgate ICT Centre in Asaba at the weekend.

He spoke at the inauguration of privately driven ICT centre by Westgate Technologies Store with a 600 capacity Computer Based Test (CBT) centre, retail shop, training centre among others in Asaba.

Okowa who was represented by the Commissioner for Science and Technology, Matthew Itsekiri described the Westgate ICT centre as inspirational while noting that the government is proud to be associated with the achievement of Westgate.

He said the presence of the hub in Asaba will save the government the cost of going to Lagos and other parts of the world for standard ICT products.

“We are pleased to have this here, it will save us the cost of going to Lagos for ICT products which were not the case before now. As a government, we are ready to make Delta State a smart city in terms of ICT. I call on private entrepreneurs to support this drive in the development of ICT,” he said.

Chairman of Westgate Technologies Store, Casmir Ezeudu in a remark, said they will not just sell products but meaningfully contribute to the growth of the host community.

Ezeudu promised that the company will train 2,000 students drawn from public schools in ICT free of charge, and organise technology summit for youths within the host communities to develop their talents.

“Most of our employees will be drawn from here. And for a start, there will be free computer training for 2,000 students drawn from public schools because we want to assist those who ordinarily cannot afford these facilities,” he said.

Partners like Intel, HP, Crown, APC, OMEN, Canon, among others pledged their continued partnership with Westgate Technology to move the State and ICT to a level where it will not only boost the economy of the state but the country at large

Lai Mohammed to Headline the 7th Lagos Public Relations Stakeholders’ Conference on National Peace and Security

Esan Bolaji
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Lai Mohammed to Headline the 7th Lagos Public Relations Stakeholders’ Conference on National Peace and Security

The Lagos State Chapter of the Nigerian Institute of Public Relations today announced that national peace and security will be the thematic focus of the web edition of the seventh Lagos Public Relations Stakeholders’ Conference, holding on Thursday, August 27, 2020.

Distinguished speakers headlining the conference, themed: Adopting Proper Communication Strategy, Channels and Technology for National Peace and Security, include the Minister of Information and Culture, Alhaji Lai Mohammed, Programme Specialist, Women, Peace and Security, United Nations Women, Peter Mancha.

Lai Mohammed to Headline the 7th Lagos Public Relations Stakeholders’ Conference on National Peace and Security
7th Lagos PR Stakeholders’ Conference | www.brandspurng.com

Other speakers expected include the Governor of Lagos State, His Excellency Mr. Babajide Sanwo-Olu; Speaker, Federal House of Representatives, RT. Hon. Femi Gbajabiamila; Executive Secretary/CEO, Lagos State Security Trust Fund, Dr. Abdurrazaq Balogun; President, African Public Relations Association, Mr Yomi Badejo-Okusanya, amongst others.

The Chairman, Lagos NIPR, Segun Mcmedal, said that the Conference is going virtual this year following government directives on social distancing to check the spread of the COVID-19 ravaging the globe. The virtual conference offers the opportunity to reach a wider audience in an online community before, during and post-Conference.

The Project Coordinator and Lead Consultant, Addefort Limited, Olabamiji Adeleye, said that “The Conference will identify dependable channels for public engagement towards achieving national peace and stability in Nigeria.”

The Conference will engage government, corporate organizations, national security agencies, women leaders, groups, media and communication professionals. It will discuss government policies, communication strategies, and technological applications that will help to achieve improved national peace and stability in line with the United Nations’ Sustainable Development Goals.

The annual conference has evolved over the years to become a bridge-building talker-shop for stakeholders to interact, discuss and proffer solutions to the social, political and economic challenges plaguing our nation.

The Lagos Public Relations Stakeholders’ Conference is the creation of Addefort Limited – a public relations and concept development firm. This edition is coming in collaboration with Lagos NIPR and Peace and Conflict Resolution Resource Centre (PEACrEc).

Nestle Nigeria – Supply chain disruption amid high inflationary environment dampen profitability

Esan Bolaji
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Nestle Nigeria – Supply chain disruption amid high inflationary environment dampen profitability

Performance highlight

Nestle Nigeria Plc reported a 1% YoY decrease in revenue in its H1 2020 result. Gross profit dipped YoY by 8% due to higher direct cost. Similarly, operating profit fell by 15% owing to a higher administrative cost. Profit before tax declined by 16% while profit after tax reduced by 15%. EPS for the period stood at N27.53k (H1 2019: N33.11k).

Lower revenue from food segment amid weak domestic sales drags group topline

Nestle Nigeria’s revenue YoY declined again in Q2 2020 though at a slower pace than the Q1 2020 decrease. Revenue in Q1 2020 fell by 90bps and declined by 35bps in Q2 2020 mainly due to the weak revenue from the food segment.

Sales in the food segment (61% of the group’s revenue) decrease YoY by 3% from N88.24bn to N86.03bn in H1 2020, which we attribute to competition and weak macros evidenced in the weak domestic sales. Sales in Nigeria declined from N139.77bn to N138.07bn in H1 2020 while export revenue grew impressively by 38% from N2.14bn to N2.95bn in H1 2020.

Supply chain disruption and FX adjustment compress gross profit

Nestle Nigeria’s production cost declined YoY by 2% in Q1 2020. But the trend changed in
Q2 2020 following the supply chain disruption occasioned by the pandemic and FX
adjustment by the CBN. Primarily, the cost of sales in Q2 2020 grew materially YoY by
14% from N36.33bn in Q2 2019 to N41.52bn in Q2 2020. We believe that the primary
driver for the increase was the group’s inability to raise prices following repricing of its
input cost sourced both local and externally. As a result, the group’s cost of sales in H1
2020 increased YoY by 6% from N75.83bn to N80.19bn.

Consequently, gross profit declined by 8% from N66.08bn in H1 2019 to N60.84bn in H1
2020. Gross profit margin also contracted 343bps to 43% in H1 2020.

Historical Performance

Nestle Nigeria - Supply chain disruption amid high inflationary environment dampen profitability
SOURCE: Company Accounts

Valuation

Following appropriate adjustments, we have a revised forward EPS of N53.39k (Q1 2020 estimate: N58.11k) on the stock informed by higher cost. We think that the cost pressure will persist given the inflationary environment and inclusion of maize (an input component of the group) in CBN FX exclusion list. Given the weak macros, we think that the group has limited scope for price increases.

Thus, we have a fair value estimate of N1,117.39k on the stock and maintain our HOLD recommendation.

WSTC Research

NASCON Allied Industries Plc – Impressive H1 2020 performance amidst COVID-19 challenges

Esan Bolaji
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NASCON Allied Industries Plc – Impressive H1 2020 performance amidst COVID-19 challenges

Performance highlight

NASCON Allied Industries Plc posted a topline growth of 12% YoY from N12.97bn in H1 2019 to N14.53bn in H1 2020. Gross profit surged double-digit by 65% YoY on the back of the haulage cost reclassification.

NASCON Allied Industries Plc reclassified haulage cost from production cost to distribution expense. Thus, operating profit rose YoY by 14% from N2.12bn in H1 2019 to N2.43bn in H1 2020. The group’s profit before tax grew at a moderate rate YoY by 7% from H1 2019 to N2.13bn to N2.28bn in H1 2020.

Likewise, profit after tax grew by 3% from N1.45bn in H1 2019 to N1.49bn in H1 2020 due to a higher effective tax rate. EPS for the period stood at N0.56k (H1 2019: N0.54k).

NASCON Allied Industries Plc regains market share amid FX scarcity and sustained land border closure

Despite the pandemic, revenue grew by 12% YoY informed by robust growth across the geographical regions. Revenue in the West increased by 36% to N2.72bn in H1 2020. Similarly, revenue in the East by grew 11% to N923mn in H1 2020. Income from the North also rose YoY by 5% to N9.91bn in H1 2020.

We believe that the growth in revenue was due to the sustained border closure and FX scarcity, which prevented the penetration of cheap smuggled goods that competed against the company’s market share.

On the other hand, the group’s production cost declined YoY by 8% from N9.45bn in H1 2019 to N8.71bn in H1 2020. The drop in production cost was primarily due to the reclassification of haulage cost to distribution expense. Safe for the reclassification, the cost of sales could have increased YoY by 7% to N10.15bn in H1 2020.

Nevertheless, on the back of the reclassification, gross profit surged YoY by 65% to N5.82bn and gross profit margin strengthened by 129bps to 40% in H1 2020.

NASCON Allied Industries Plc - Impressive H1 2020 performance amidst COVID-19 challenges

Recommendation

NASCON Allied Industries Plc has been on a rebounding revenue growth trend between Q1 2020 and Q2 2020. Revenue in Q2 2020 grew markedly by 24% despite COVID-19 related challenges. However, trade receivables increased by 19% to N11.81bn in H1 2020, which may suggest that the company may have relaxed its credit policy.

Notably, however, the group’s cash position also improved from a negative place of N310mn in H1 2019 to of N5.71bn in H1 2020. We believe that the sustained border closure, as well as FX scarcity, was supportive of the group. We expect to see the group reclaim more market share given the persistent FX scarcity and the gradual easing of the lockdown.

Overall, we have a revised forward EPS of N1.05k with a fair value estimate of N6.87k on the stock. At the current market price of N10.00k, the stock is trading at 31% premium to our reasonable estimate.

Hence, we recommend a SELL.

WSTC Securities Limited

Nestlé Nigeria – Contraction in Food Giant’s Revenue

Esan Bolaji
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Nestlé Nigeria – Contraction in Food Giant’s Revenue

Topline Pressured by Decline in Domestic Sales

In the first quarter of 2020, NESTLE reported a 0.90% YoY contraction in topline — the first drop since Q1:2015. The food giant’s Q2:2020 financial scorecard reveals a further moderation in topline down by 0.35% YoY to NGN70.70bn.

We reiterate that NESTLE’s topline growth has increasingly slowed since Q1:2019 (+5.19% YoY, +4.59% YoY, and +2.36% YoY in Q1, Q2 and Q3:2019 respectively) – bucking the trend of double-digit growth, although it picked up in Q4:2019 \+15.12% You.

This, as well as the steady decline [-1.29% and -1.14% in Q1 and Q2:2020 respectively) in domestic sales (which typically accounts for 98.5% of overall revenue), leads us to believe that the increasing strain on consumer wallets continues to bite into the company’s sales.

As a positive, however, we note that export sales continued to grow [+25.81% YoY in Q1, and +48.60% YoY in Q2:2020), providing some respite to sales. For Q2:2020, the pickup in export sales is particularly impressive, when juxtaposed with the sustained land border closure and distribution challenges ushered in by the pandemic.

Financial Highlights (NGN billion) NESTLE PLC Q1:2020 Unaudited Results

Nestlé Nigeria - Contraction in Food Giant’s Revenue
Meristem Securities Limited

In all, H1:2020 revenue settled at NGN141.03bn, 62bps lower than in the corresponding period in 2019. Although we consider the waning disposable income of consumers, a key downside risk, we expect the broad uptick in economic activities to bode well for the company’s overall performance in H2:2020. Thus, we retain our projection of a 7.28% growth in 2020FY revenue to NGN304.71bn from NGN284.04bn in 2019FY.

Gross Margin Buckles Under Pressure

Despite the slowdown in revenue, cost of sales was up 14.2% in Q2:2020, overturning the 2.09% drop preceding quarter. As a result, the cost of sales climbed to NGN80.19bn in H1:2020, precipitating a decline in gross margin to 43.14% (vs. 46.57% in H1:2019).

OPEX also rose by 3.37% to NGN26.51bn, fueled solely by a 50.68% surge in admin expenses, which offset the fall in marketing and distribution costs (- 6.34%). This brought operating profit down 15.10% YoY to NGN34.33bn in H1:2020.

Although interest-bearing liabilities rose to NGN6.62bn during the period, finance costs pegged lower at NGN937.36mn (vs. NGN2.27bn as at 2019FY when interest-bearing liabilities stood at NGN13.21bn). PBT, thus, came in at NGN33.86bn, a 16.26% decline from H1:2019 levels.

A slight increase in the effective tax rate to 35.55% (vs. 35.09% in H1:2019) further weighed on bottom-line, resulting in a 16.84% decline to NGN21.83bn (vs. NGN26.25bn in H1:2019), implying a net margin of 15.48% from 18.50% in H1:2019.

While we expect direct and operating costs to remain elevated for the rest of the year, our earnings outlook rests largely on our topline projection. Ultimately, we forecast a 5.18% growth in 2020FY net income to NGN48.05bn, from NGN45.68bn in 2019FY.

ROE Remains Attractive

At the end of H1:2020, NESTLE’s annualized ROE stood at 106.43% – 11.03 percentage points higher than 95.39% in 2019FY. This was propped by the spike in financial leverage to 6.11x (vs. 4.24x as at 2019FY). In contrast, however, we observed a decline in annualized ROA to 23.11% vs. 25.69% as at 2019FY, owing to a decline in profitability between both periods.

Outlook and Recommendation

We maintain our 2020FY target price of NGN1200 on the back of an Expected EPS of NGN60.00 and a target P/E of 20.00x. This represents an upside potential of 2.13% to its closing price of NGN1,175 on August 13’^, 2020. Hence, we rate NESTLE a HOLD.

Meristem Securities Limited

STEP initiative to reduce number of out-of-school children in Oyo State

Esan Bolaji
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STEP initiative to reduce number of out-of-school children in Oyo State

The Start Them Early Program (STEP) can help the Oyo State government reduce the number of out-of-school children in the State. The Coordinator of IITA’s STEP initiative, Adedayo Adefioye, made this assertion on 23 July 2020, during the official launch of the program and the modern agribusiness training facilities at Fasola Grammar School in Oyo West Local Government Area.

STEP initiative to reduce number of out-of-school children in Oyo State
IITA DG Nteranya Sanginga showing Governor Makinde some of the crop farms.

To promote an early interest in agriculture, IITA is introducing agribusiness training in secondary schools through STEP. Fasola Grammar School is one of three beneficiary schools selected in southwestern Nigeria. Established in 2018, STEP aims to challenge the mindsets of young Africans about agriculture and expose them to viable opportunities in agribusiness from an early age.

STEP initiative to reduce number of out-of-school children in Oyo State
A STEP-trained student showing Governor Seyi Makinde how to use a planter.

In his opening remarks on behalf of IITA, TAAT Program Coordinator Chrys Akem, spoke about the vision of the IITA Director General Nteranya Sanginga to see the students of Fasola emerge to become millionaires as they embrace agriculture as a business.

Speaking on behalf of the IITA Deputy Director General, Partnerships for Delivery, Kenton Dashiell, Akem also highlighted the recently launched Agribusiness Education Program of the Oyo State government. “These two programs, STEP and the youth-in-agribusiness training centre, when expanded all over Oyo State, would stimulate the agricultural transformation of the state and create jobs for thousands of youth,” Akem said.

STEP initiative to reduce number of out-of-school children in Oyo State
During a tour of the facilities, students showcased some of the value-added products produced.

Coordinator Adefioye thanked the Oyo State Governor, Engr. Seyi Makinde, and the people of the State for providing an enabling environment to establish this initiative. He said he hopes the program would lay a solid foundation to transform the students into global entrepreneurs in agriculture.

He said the program would not only reduce the number of out-of-school children in the State but also allow them to complete their secondary school education and even further their academics with income generated in the school agribusiness clubs initiated within the program.

The ceremony also featured testimonials from students such as Motunrayo Folarin, who participated in the program pilot. Folarin expressed gratitude for the depth of the knowledge that he and fellow students learned about the agricultural value chains.

They also learned about mechanization, ICT, and how to add value to their farm products. She urged the governor to assist in expanding the program so that more students in Oyo State can participate and benefit from the initiative.

Another student, Samuel Joshua, spoke of how he used to view agriculture negatively because of the amount of manual labour required. “But today, in just an hour, we can clear two acres of land, which used to take us two to three days,” said Joshua. He also noted that there was no gender discrimination, even in the mechanization training, and that the girls were as active as the boys.

IITA collaborates with Ogun State Government on Agriculture

Esan Bolaji
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IITA collaborates with Ogun State Government on Agriculture

As part of measures to foster partnerships in agricultural transformation with governments in Nigeria, CGIAR-IITA signed a memorandum of understanding (MoU) with the government of Ogun State.

With agriculture being a vital source of income in southwest Nigeria and the country as a whole, IITA is exploring partnerships that will out-scale the available agricultural innovations to meet Africa’s most pressing challenges of hunger, malnutrition, poverty, and natural resource degradation.

IITA collaborates with Ogun State government on agriculture
The Honourable Commissioner of Agriculture, Ogun State, Dr Adeola Odedina, speaking before the MoU signing

The Ogun State government, based on its commitment to enhancing self-sufficiency in food production, sought to partner with IITA on innovative solutions and capacity building to develop agriculture in the State. A successful partnership is expected to lead to an increase in the provision of raw materials for agro-based industrialists and generate employment opportunities in the State.

IITA collaborates with Ogun State government on agriculture
Ogun State (right), signing the MoU. Bottom: The Commissioner and his team took a tour of IITA facilities.

On 23 July, the Ogun State Commissioner for Agriculture, Hon. Adeola Odedina signed the MoU with IITA during a visit to the Institute’s headquarters in Ibadan, Nigeria. IITA Management initiated the strategic collaboration, and both parties agreed to have the partnership focus on technical backstopping, the establishment of demonstration farms, and enterprise development at the Odeda Farm Institute.

IITA collaborates with Ogun State government on agriculture
Kenton Dashiell, IITA DDG-P4D (left) and Adeola Odedina, Hon Commissioner of Agriculture,

Representing IITA Director General Nteranya Sanginga, the Deputy Director-General, Partnerships for Delivery, Kenton Dashiell, welcomed the team and introduced the activities of IITA.

Head of IITA Genetic Resources Center, Michael Abberton, and the Director of Advocacy and Country Alignment Function, Kwesi Atta-Krah, gave updates on the Institute’s activities in Ogun State and plans, which include breeding of cassava, maize, and yam.

IITA is strengthening its partnership with the State for improved clean planting material production and supply through the IITA Business Incubation Platform (IITA-BIP) among youth in the State. The parties are also working on a digital collaboration of value chains for improved communication, coordination, and access to markets in Ogun State.

The Hon. Commissioner mentioned that the State Governor, His Excellency Prince Dapo Abiodun, is excited about the relationship between Ogun State and IITA. He said, “The proposed collaboration gives us mileage in the state; we are proud to be associated with IITA.” He also stated that the meeting is a product of hard work from both parties and that he looks forward to achieving the milestones documented in the MoU.

While appreciating the Ogun State government team for their commitment to the success of the partnership, Dashiell said, “Signing the MoU does not commit any of the parties to do anything, but the commitment exhibited by your team shows that the purpose of this collaboration will be achieved. We hope the partnership grows stronger.”

Unemployment Rate Rises in Q2 2020; Foreign Portfolio Inflows Tank by 39.55% in H1 2020…

Esan Bolaji
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Unemployment Rate Rises in Q2 2020; Foreign Portfolio Inflows Tank by 39.55% in H1 2020…

Freshly released Q2 2020 labour force statistics by National Bureau of Statistics (NBS) showed that Nigeria’s labour force (unemployment rate) dropped to 80.29 million in Q2 2020 (11.25% down from 90.47 million in Q3 2018).

Further Breakdown Unemployment Rate Data

Further breakdown of the data showed that unemployment rate rose to 27.1% in Q2 2020 from 23.1% in Q3 2018 as the classification of those working less than 20 hours a week and those who did nothing together increased the number of unemployed persons to 21.76 million (from 20.93 million in Q3 2018).

Unemployment Rate Rises in Q2 2020; Foreign Portfolio Inflows Tank by 39.55% in H1 2020…
Photo by Hennie Stander

Also, 22.94 million persons were underemployed, as they worked less than 40 hours, in Q2 2020 (25.97% up from 18.21 million in Q3 2018). This brought the total unemployed plus underemployed persons to 44.71 million (55.68%) in Q2 2020 from 39.14 million (43.27%) in Q3 2018.

Amongst the 37 states (inclusive of the Federal Capital Territory), five states with the highest unemployment rates – when underemployed and unemployed numbers were combined in the quarter – include; Imo State recorded 75.1%, Kaduna (72.8%), Abia (70.3%), Kogi (69.1%) and Gombe (69.1%).

Meanwhile, the fully employed, 44.32% of the labour force who worked for more than 40 hours, fell to 35.59 million in Q2 2020 (from 51.32 million in Q3 2018). In another development, the Nigerian Stock Exchange (NSE) report on domestic and foreign portfolio participation in equities trading showed that total equities market transactions decreased in H1 2020 compared to transactions done in the corresponding period of 2019.

The ratio of total domestic transactions to total foreign transactions increased to 60:40 in H1 2020, from 54:46 in H1 2019, given the marginal 1.27% decline in total domestic transactions as compared with the 16.11% fall in total foreign portfolio transactions.

Specifically, total transactions on the nation’s bourse moderated to N1.00 trillion in H1 2020 (from N1.09 trillion printed in H1 2019); of which total domestic transactions fell to N606.93 billion (from N614.73 billion) while FPI transactions reduced to N396.63 billion (from N472.78 billion).

Breakdown of the FPI transactions in H1 2020 showed that foreign portflio outflows increased by 3.44% to N266.68 billion; however, the foreign portfolio inflows dropped by 39.55% to N129.95 billion amid uncertainties over the COVID-19 pandemic.

Domestic institutional transactions rose year on year by 12.45% to N320.52 billion in H1 2020. On the flip side, retail investors’ interest in equities market was weak as transactions from this group moderated to N286.41 billion in the period under review from N329.69 billion in H1 2019.

As investors stood on the sidelines, particularly the FPIs, the NSE All-Share Index (ASI) plummeted by 8.80% to 24,479.16 index points in H1 2020 (compared to the 4.66% decline to 29,966.87 index points in H1 2019).

On the global scene, the sustained weekly rise in US crude oil input to refineries, climbing week-on-week by 0.14% to 14.66 mb/d as at August 7, 2020 (but lower by 15.26% to 17.30 mb/d printed on August 9, 2019), lifted WTI crude price w-o-w by 0.69% to USD42.24 a barrel.

Also, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) fell w-o-w by 0.87% to 514.08 million barrels (but higher by 16.70% from 440.51 million barrels as at August 9, 2019).

However, Brent crude fell by 0.29% to USD44.96 a barrel even as Bonny Light crude moderated by 0.42% to USD44.63 a barrel as at Thursday, August 13, 2020.

The unencouraging unemployment figures reflect the ineffectiveness of government at creating an enabling environment for private businesses to thrive and absorb the capable and willing to work persons; hence the rising poverty and worsening insecurity. We expect the government to continue prioritising infrastructural development and churning out right policies that would facilitate private-sector-led investments.

Cowry Research

United Bank for Africa Board Approves 2020 Audited Half Year Reports

Esan Bolaji
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0
United Bank for Africa Board Approves 2020 Audited Half Year Reports

The board of United Bank for Africa Plc has approved the 2020 Audited Half Year Results & Reports and payment of an interim dividend.

The financial scorecard of the group was approved by the board on July 28, 2020.

“Please refer to the announcement dated July 28, 2020, which notified the Nigerian Stock Exchange and the investing public of the Board Meeting of United Bank for Africa Plc.
Please be informed that the Board of United Bank for Africa Plc at its meeting which held on Thursday, August 13, 2020, considered and approved the 2020 Audited Half Year Results & Reports and payment of an interim dividend, subject to the approval of the Central Bank of Nigeria.
Further to the above, kindly be advised that the Nigerian Stock Exchange and the investing public would be immediately notified upon receipt of the 2020 Audited Half Year Results & Reports by the Central Bank of Nigeria.”

With this development, investors will be expecting to have a feel of the United Bank for Africa’s numbers in the coming days.

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