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Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 4:28am On Nov 09, 2015
LAGOS — Negative economic fundamentals overshadowing Nigeria’s business environment may have begun to take its toll on corporate financial results as third quarter earnings plunged in three key sectors, namely, oil and gas, banking and conglomerates.

Poor results announced by industry leaders in these sectors also worsened the performance of Nigerian Stock Exchange All Share Index last weekend.

In the oil and gas sector, Oando Plc had led the pack in corporate downturn with a record monumental loss of N179.3 billion in its late result of 2014 full year and then followed it up with another N35.1 billion loss in its interim 2015 results.

Last week other big players followed same trend with Mobil Oil Nigeria Plc announcing a third quarter result that show revenue at N43.326 billion down 25.3 per cent from N60.718 billion recorded in the corresponding period of 2014 while its profit at N5.248 billion show a 33.5 per cent decline from N7.895 recorded in 2014.

Conoil Nigeria Plc and Total Nigeria Plc which are among the top players in the industry equally recorded declining fortune with Conoil recording a massive 42.28 per cent and 16.13 per cent drops in revenue and profit respectively while Total recorded 10 per cent and 5 per cent drops in revenue and profits respectively.

All the companies blamed negative economic environment and global oil price crash for their declining performance. They also cited foreign exchange related losses, post-currency devaluation as well as delayed payments of petroleum products subsidies to downstream operators as leading causes of the bad fortune adding that year end and beyond look bleak in the face of what they call “dull policy moment in the oil and gas sector.”

The banking industry presented a similar picture last week when almost all the results in the sector were announced showing that while tier-two banks show growths, big players in tier-1 league show marginal growth with a few significant declines in fortune.

Afrinvest Group, a Lagos-based investment house, in a review of the banking sector third quarter 2015 performance last weekend noted that “within the banking space, the constraining operating environment in 2015 was reflected in their levels of profitability in comparison to the corresponding period the year before.

“The high exposure of Nigerian banks to the public sector and the oil & gas sector (which we estimate at 5.4 per cent and 27.0 per cent in first half 2015 respectively) has led to a weakness in assets quality as the revenue profiles of their key customers (government and indigenous downstream and upstream companies) were impaired by the oil price crash.

“This has led to higher non-performing loans and impairment charges affecting profitability of banks. Our year-on-year analysis of banks’ bottom lines across tiers shows that third quarter 2015 profitability was generally affected by higher impairment charges, with Stanbic IBTC Bank Plc leading the pack at 521.3 per cent, FirstBank, 247 per cent; United Bank for Africa 129 per cent, recording the highest increases in impairment charges, a development which ultimately depressed their profitability.

The consumer goods and conglomerate segment also followed the decline trend with key players posting significant declines in both revenue and profit
except Nestle Plc which was able to deliver marginal year-on-year increases in revenue and profit despite the challenging macroeconomic landscape.

Cadbury Nigeria Plc and UAC Nigeria Plc led the pack in both sectors with Cadbury recording a massive 98.27 per cent decline in profit while UAC suffered equally heavy drop of 58 per cent in profitability.

On sector average, analysts observed that though sales growth in the last nine months shows a marginal weakening at about 0.2 per cent across top five consumer goods companies, net finance costs surged 81.5 per cent.

Cc: Lalasticlala

http://www.vanguardngr.com/2015/11/harsh-economic-environment-crashes-corporate-earnings/

1 Like 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 4:29am On Nov 09, 2015
[size=15pt]All the companies blamed negative economic environment (Under Buhary) and global oil price crash (For which Buhary promised to address during his campaign) for their declining performance.

They also cited foreign exchange related losses, post-currency devaluation as well as delayed payments of petroleum products subsidies to downstream operators as leading causes of the bad fortune adding that year end and beyond look bleak in the face of what they call “dull policy moment in the oil and gas sector.”
[/size]

Industries are closing, profit of corporation diminishing as there is no yet economic direction and blueprint six month after this new government.

Can the overrated minister who the president tagged "Noise Makers" help address the challenges ?

Time will tell...

24 Likes 7 Shares

Re: Harsh Economic Environment Crashes Corporate Earnings by Nobody: 5:39am On Nov 09, 2015
Smh
Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 6:03am On Nov 09, 2015
Freemanan:
Smh

Nigeria economy is nose-diving, let hope the "Noise Maker's' impact would change the downward trend...

6 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by MathsChic(f): 6:44am On Nov 09, 2015
As an insider, I do admit there's good evidence this story is true. Whether it's as a result of Buhari's (mis)governance is what i can't tell.

7 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by PassingShot(m): 6:46am On Nov 09, 2015
Nigeria is surely lucky for getting delivered from PDP and GEJ. They messed up our economy.

6 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 6:51am On Nov 09, 2015
PassingShot:
Nigeria is surely lucky for getting delivered from PDP and GEJ. They messed up our economy.

You are still living in the past my friend, Buhary and APC took over the economy more than six months ago, half-a-year is enough to measure economic growth. What have we seen so far ?

Regression, downsize, hardship, businesses closing up, corporate profitability index graph shifting inward, unfortunately Nigeria is completely sliding into full recession.

Let see the magic from the "Noise Makers"

36 Likes 4 Shares

Re: Harsh Economic Environment Crashes Corporate Earnings by OrlandoOwoh(m): 6:52am On Nov 09, 2015
A vestige of Jonathan's cluelessness.

2 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by PassingShot(m): 7:02am On Nov 09, 2015
Firefire:


You are still living in the past my friend, Buhary and APC took over the economy more than six months ago, half-a-year is enough to measure economic growth. What have we seen so far ?

Regression, downsize, hardship, businesses closing up, corporate profitability index shifting inward, unfortunately Nigeria is completely sliding into full recession.

Let see the magic from the "Noise Makers"
May 29th 2015 to November 9th 2015 is "more than six months" in the books of perpetual wailers. grin

I am enlightened and advanced enough to understand that 90% of the bad news we read about our economy now is a result of bad decisions of many years before now.

We're talking of a GEJ's regime that couldn't even afford to pay workers salaries in March and April this year without resorting to loans, despite earning unequalled billions in dollars during that period. We're talking of a govt of stealing not corruption; a govt whose finance minister announced in April 2015 that hard times awaited the country after having lied to us before that our economy was next best thing to happen in the history of Nigeria.

Thank God we refused to be fooled. No amount of wailing will make PMB fail.

9 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 7:08am On Nov 09, 2015
PassingShot:

May 29th 2015 to November 9th 2015 is "more than six months" in the books of perpetual wailers. grin

I am enlightened and advanced enough to understand that 90% of the bad news we read about our economy now is a result of bad decisions of many years before now.

We're talking of a GEJ's regime that couldn't even afford to pay workers salaries in March and April this year without resorting to loans, despite earning unequalled billions in dollars during that period. We're talking of a govt of stealing not corruption; a govt whose finance minister announced in April 2015 that hard times awaited the country after having lied to us before that our economy was next best thing to happen in the history of Nigeria.

Thank God we refused to be fooled. No amount of wailing will make PMB fail.

A serious government having won an election since March would have set his house in order, in anticipation of the task and challenges ahead.

Unfortunately, all we have seen so far, is noise, media denial of all campaign promises, buck-passing, and political infighting within the warmongers.

It took your serious government how long after your attached comment below to heed to the voice of reason ?

May God help Nigeria and lead our leaders right.

Sugbon, eni to gbin ebu ika, bi ti Lie Mohammed ati awon to gbe ise ran ni akoko Janathan, ki won mo wipe, Awon Omo won yio je ni be. Esan o gbo ogun...

35 Likes 4 Shares

Re: Harsh Economic Environment Crashes Corporate Earnings by theV0ice: 7:25am On Nov 09, 2015
Firefire:


You are still living in the past my friend, Buhary and APC took over the economy more than six months ago, half-a-year is enough to measure economic growth. What have we seen so far ?

Regression, downsize, hardship, businesses closing up, corporate profitability index graph shifting inward, unfortunately Nigeria is completely sliding into full recession.

Let see the magic from the "Noise Makers"

Hear what Dr Okonjo Iweala said 5 days after PMB was sworn in

Nigeria’s former Finance Minister [size=14pt]Ngozi Okonjo-Iweala said her successor will face a “difficult” year because of plunging oil revenues[/size] and the economy needs expert management to weather the storm.

[size=14pt]“We have a serious situation with a cash crunch,”[/size] she said in an interview with Bloomberg in Cape Town, South Africa at the World Economic Forum on Africa.


“But fundamentally, the economy is strong. If we can get through the cash crunch, manage the way through, build on some of the assets we have, by next year, things will be better.”....................

http://thenewsnigeria.com.ng/2015/06/okonjo-iweala-warns-nigeria-tough-times-ahead/

she and other experts had also predicted harsh economic climate for the nation in February, 3 months before PMB was sworn in

http://www.nigerianbulletin.com/threads/nigeria-the-poor-are-about-to-get-poorer-experts.108113/

So to every reasonable adult, it's very obvious that most of what we are grappling with today is a carryover from the previous govt. I will not give high marks to the current govt. I am not excited about the seemingly slow pace but you should know that it is only a crooked man that will attribute all the anomalies today to PMB.

3 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 7:31am On Nov 09, 2015
theV0ice:


Hear what Dr Okonjo Iweala said 5 days after PMB was sworn in



she and other experts had also predicted harsh economic climate for the nation in February, 3 months before PMB was sworn in

http://www.nigerianbulletin.com/threads/nigeria-the-poor-are-about-to-get-poorer-experts.108113/

So to every reasonable adult, it's very obvious that most of what we are grappling with today is a carryover from the previous govt. I will not give high marks to the current govt. I am not excited about the seemingly slow pace but you should know that it is only a crooked man that will attribute all the anomalies today to PMB.

11 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by theV0ice: 7:35am On Nov 09, 2015
^^^^^ of course the pace is slow but making it look like GEJ could have done better today with oil @ $46/barrel when he couldn't @ do so with oil @ over $100/barrel is delusionary at best and dishonest at worst

2 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by permsec: 7:40am On Nov 09, 2015
Bia, the poster talking about okonjo iweala predicting harsh economic climate within this period, where you and your ilks not condemning that woman of being a poor economist? Now you wanna make her as a reference point. Make God forgive you.

18 Likes 2 Shares

Re: Harsh Economic Environment Crashes Corporate Earnings by Iykopee(m): 7:42am On Nov 09, 2015
Buhari's brand of cluelessness is made in Afghanistan. Under six months of his govt and Nigeria is practically dead in its economies... There has been an unprecedented sack of private sector workers and he's just moping around like a pig without solution to it.

13 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by neocortex: 7:42am On Nov 09, 2015
That is not a problem, with Buhari's body language
all problems will be fixed by december.

2 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by EternalTruths: 7:47am On Nov 09, 2015
Firefire:

Nigeria economy is nose-diving, let hope the "Noise Maker's' impact would change the downward trend...




What do you expect from a President who failed maths


Do you think such President can handle economic maths.


By the time oil price drops to $20 per barrel, his supporters will be to poor to browse the internet. grin


PassingShot:
Nigeria is surely lucky for getting delivered from PDP and GEJ. They messed up our economy.



I hope you have stocked enough cocoa seedlings.


Don't tell your oil conscious President to implement true federalism cool

8 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by onatisi(m): 7:48am On Nov 09, 2015
MathsChic:
As an insider, I do admit there's good evidence to believe this story is true. Whether it's as a result of Buhari's (mis)governance is what i can't tell.
bros ppl still don't know the extent of economic downturn we are continually talking about,by January ppl will understand it better

7 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by disloman(m): 7:49am On Nov 09, 2015
Firefire:
[size=15pt]All the companies blamed negative economic environment (Under Buhary) and global oil price crash (For which Buhary promised to address during his campaign) for their declining performance.

They also cited foreign exchange related losses, post-currency devaluation as well as delayed payments of petroleum products subsidies to downstream operators as leading causes of the bad fortune adding that year end and beyond look bleak in the face of what they call “dull policy moment in the oil and gas sector.”
[/size]

Industries are closing, profit of corporation diminishing as there is no yet economic direction and blueprint six month after this new government.

Can the overrated minister who the president tagged "Noise Makers" help address the challenges ?

Time will tell...

1 Like

Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 7:49am On Nov 09, 2015
onatisi:
bros ppl still don't know the extent of economic downturn we are continually talking about,by January ppl will understand it better

embarassed

2 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by theV0ice: 7:49am On Nov 09, 2015
permsec:
Bia, the poster talking about okonjo iweala predicting harsh economic climate within this period, where you and your ilks not condemning that woman of being a poor economist? Now you wanna make her as a reference point. Make God forgive you.

Every slowpoke in the country knew we were in problems then and would be for a long time so Ngozi said nothing new. In fact, she had lived in denial for a long time before admitting the truth some months before the elections because it was dumb and childish to keep lying to oneself.

What folks were angry and sad about was why Nigeria had to suddenly go broke less than 6 months after enjoying oil at record prices?

How must that make her feel as a world class economic expert? That after regaling us with how wonderful our economy was doing, she had to do a volte face and admit it was all a farce?

1 Like

Re: Harsh Economic Environment Crashes Corporate Earnings by onatisi(m): 7:51am On Nov 09, 2015
Firefire:


embarassed
it is really serious and it is going to affect Nigerians irrespective of party affiliation. The 7 months wasted by this government will haunt the nation next year

7 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by theV0ice: 8:05am On Nov 09, 2015
Iykopee:
Buhari's brand of cluelessness is made in Afghanistan. Under six months of his govt and Nigeria is practically dead in its economies... There has been an unprecedented sack of private sector workers and he's just moping around like a pig without solution to it.

Nigeria had been dead in that context before PMB came in. I admit PMB is not doing enough but his less than enough is better than GEJ who presided over record oil sales yet still led us into economic problems. Also Job losses started under your hero even with the oil boom

Jan 2010

https://www.nairaland.com/376844/oceanic-bank-sacks-another-1250


Jan 2012

http://www.punchng.com/business/access-bank-sacks-1500-intercontinental-employees-shuts-branches-2/


Feb 2012

http://www.proshareng.com/news/Mergers%20&%20Aquisitions/Ecobank-sacks-over-1,000-staff-after-Oceanic-Bank-merger-in-Nigeria/16344


Feb 2015

http://www.thisdaylive.com/articles/oil-firms-face-project-delays-layoffs-over-slump-in-oil-price/202104/


March 2015

http://www.nigeriacommunicationsweek.com.ng/e-financial/nigerian-banks-in-trouble-plan-mass-sack-of-workers


April 2015

http://www.pmnewsnigeria.com/2015/04/14/mass-sack-at-diamond-bank/

will you now admit he was the definition of clueless?

6 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 8:10am On Nov 09, 2015
Lalasticlala, good morning, our economy is dying, very soon people here will now rely on free 15MB from Glo, MTN & Etisalat to post as the economic recession and hardship could be severe starting from Q1 2016 if nothing concrete is done to address the situation.

2 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by PRYCE(m): 8:11am On Nov 09, 2015
Firefire mi, This one na like constant news for Naija!

The Dullard didn't disappoint at all by adding Our Collective Victory on the field of play to his "LONG" list of achievements... Side by side his "MINISTERAIL" nominations and confirmation. The day After tomorrow, he's gonna add Another; He gon swear in his ministers to the excitement of his perverts! grin grin

6 Likes 2 Shares

Re: Harsh Economic Environment Crashes Corporate Earnings by Emekamex(m): 8:12am On Nov 09, 2015
Same old news; the economy will keep depreciating till APC realize that they are in power and no longer an opposition because they are still acting as one.

3 Likes

Re: Harsh Economic Environment Crashes Corporate Earnings by Nobody: 8:14am On Nov 09, 2015
PassingShot:
Nigeria is surely lucky for getting delivered from PDP and GEJ. They messed up our economy.



This story is getting stale.... try something else undecided

8 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by PassingShot(m): 8:16am On Nov 09, 2015
Firefire:


A serious government having won an election since March would have set his house in order, in anticipation of the task and challenges ahead.

Unfortunately, all we have seen so far, is noise, media denial of all campaign promises, buck-passing, and political infighting within the warmongers.

It took your serious government how long after your attached comment below to heed to the voice of reason ?

May God help Nigeria and lead our leaders right.

Sugbon, eni to gbin ebu ika, bi ti Lie Mohammed ati awon to gbe ise ran ni akoko Janathan, ki won mo wipe, Awon Omo won yio je ni be. Esan o gbo ogun...
Do you need anyone to educate you that no amount of of preparedness can make you understand a system if you're not really part of it? Not especially when you are inheriting a battered and rap.ed economy as ours. It's a fact that Jonathan and his cohorts looted the economy with reckless abandon.

I see you couldn't argue with the facts in my earlier post. You all know the truth and no amount of propaganda will wish it away.

5 Likes 1 Share

Re: Harsh Economic Environment Crashes Corporate Earnings by iamsodium(m): 8:25am On Nov 09, 2015
Ok
Re: Harsh Economic Environment Crashes Corporate Earnings by mrlaw93(m): 8:26am On Nov 09, 2015
j
Re: Harsh Economic Environment Crashes Corporate Earnings by kulobyno: 8:26am On Nov 09, 2015
Thok
Re: Harsh Economic Environment Crashes Corporate Earnings by Firefire(m): 8:26am On Nov 09, 2015
PassingShot:


Do you need anyone to educate you that no amount of of preparedness can make you understand a system if you're not really part of it ? Not especially when you are inheriting a battered and rap.ed economy as ours. It's a fact that Jonathan and his cohorts looted the economy with reckless abandon.

I see you couldn't argue with the facts in my earlier post. You all know the truth and no amount of propaganda will wish it away.

Interesting... please take your time to go through APC Manifesto and campaign promises, there are no evidence(s) to support your submission of Buhary and APC not understanding the system.

Is Aso-rock Lagos Business School ? cheesy

They are all part of the system.

If you doubt me, ask Oshi-Omo-Ole, he has all the figures of income and expenditure since 1999 including all the misappropriated and looted fund, don't forget American government gave Buhary the list of all corrupt government officials under the last administration.

Moreover, Alhaji Joda submitted his final report accessing the last administration detailed handover.

Why is Buhary sleeping in Asorock and gallivanting around the globe like a tourist minister, while the economy is suffering ?

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