DrAwo:


Let me give you an assignment.

Use a calculator to and divide the stated profit for the period by the total outstanding shares (check note 14 for the figure) and tell us what the EPS should be...

Don't believe everything you see in the financial statements hook, line and sinker...

Companies are not immune from making mistakes in their FS.

😁

Frangel:


They are deducted. Usually mapped under admin expenses. As a standard, you can't arrived at your operating profit without providing for depreciation and amortization.

Okay, thanks. I will try and see if I can spot them in the statement breakdown. That is probably why my free cash flow calculation is also off.

perfectgen:
Add Jimoh Ibrahim, the famous barber of even those carrying Afro

With Jimoh Ibrahim, believe and do the opposite of whatever he says. Scum of the earth!

emmanuelewumi:




With EPS of N3.11k, Nahco should be able to pay a dividend of N2.50k

They can. However, my challenge is looking at their cash position of less than N1bn at YE, can they afford to pay dividend of about N5b without borrowing or shifting the payment date later in the year when they would have generated good cash from operations. They made some significant/strategic cash investments in 2023. Impressive results by the way.

Frangel:


They can. However, my challenge is looking at their cash position of less than N1bn at YE, can they afford to pay dividend of about N5b without borrowing or shifting the payment date later in the year when they would have generated good cash from operations. They made some significant/strategic cash investments in 2023. Impressive results by the way.

That's one of the use of Retained Earnings.The company can afford it. N2 dividend seem highly probabie vs 2.50. heck , they may splurge considering Capital expenditure seem low this period. Who knows?

Frangel:


They can. However, my challenge is looking at their cash position of less than N1bn at YE, can they afford to pay dividend of about N5b without borrowing or shifting the payment date later in the year when they would have generated good cash from operations. They made some significant/strategic cash investments in 2023. Impressive results by the way.

You're right, I was trying to convey the same point. After accounting for depreciation and amortization (which I found under administrative expenses), the free cash flow comes out to around 796 million naira. That translates to approximately 40 kobo per share.

Hogwarthtrades:


That's one of the use of Retained Earnings.The company can afford it. N2 dividend seem highly probabie vs 2.50. heck , they may splurge considering Capital expenditure seem low this period. Who knows?

Based on Retained Earnings, they are allowed to pay up to N5. But dividend payout is by cash.

https://doclib.ngxgroup.com/Financial_NewsDocs/40189_THE_INITIATES_PLC-_YEAR_END_-_FINANCIAL_STATEMENT_FOR_2023_FINANCIAL_STATEMENTS_JANUARY_2024.pdf

This result very much better than Japaul.
More upside but not 100%

ositadima1:


You're right, I was trying to convey the same point. After accounting for depreciation and amortization (which I found under administrative expenses), the free cash flow comes out to around 796 million naira. That translates to approximately 40 kobo per share.

They can borrow or shift payment date to a later date in the year when cash position has improved. All depend on what the board is seeing and wants to do, anyways.

Frangel:


They can. However, my challenge is looking at their cash position of less than N1bn at YE, can they afford to pay dividend of about N5b without borrowing or shifting the payment date later in the year when they would have generated good cash from operations. They made some significant/strategic cash investments in 2023. Impressive results by the way.

They have always paid dividends between June and July.

DANGOTE REFINERY SET TO IMPORT CRUDE OIL FROM THE US
Recent reports indicated that Dangote Refinery is planning importing crude oil from the United States. This development has sparked discussions, with some questioning the refinery's commitment to Nigeria's oil industry and its patriotism. However, it's important to view this move from a business perspective.

Dangote Refinery, as a business entity, is seeking ways to reduce costs to maximize its profits. One of the key factors driving this consideration is likely to be the cost differential between Brent oil, commonly associated with Nigerian oil, and WTI (West Texas Intermediate) oil from the US. While Brent oil is known for its higher quality, it comes at a higher cost.

Opting to import WTI for refining purposes can be a sound business decision due to the cost advantage it offers. The crucial question arises when it comes to the pricing of refined products. Will Dangote Refinery price its products as if they were refined from Brent oil, or will they pass on the cost savings to consumers by offering competitive prices?

If Dangote Refinery chooses to sell its refined products at a price reflective of WTI cost, it would alleviate concerns among Nigerians.

Another major concern would be the pressure on dollars (or foreign exchange), which the country is currently dealing with.

This attempt by some people to bring down the price of Japaul is interesting. How are you comparing 2 companies operating in different industries? Ok o.

Jaakay:
This attempt by some people to bring down the price of Japaul is interesting. How are you comparing 2 companies operating in different industries? Ok o.

Haha ...
don't be scare ni..
Quote the person now

BullBearMkt:
DANGOTE REFINERY SET TO IMPORT CRUDE OIL FROM THE US
Recent reports indicated that Dangote Refinery is planning importing crude oil from the United States. This development has sparked discussions, with some questioning the refinery's commitment to Nigeria's oil industry and its patriotism. However, it's important to view this move from a business perspective.

Dangote Refinery, as a business entity, is seeking ways to reduce costs to maximize its profits. One of the key factors driving this consideration is likely to be the cost differential between Brent oil, commonly associated with Nigerian oil, and WTI (West Texas Intermediate) oil from the US. While Brent oil is known for its higher quality, it comes at a higher cost.

Opting to import WTI for refining purposes can be a sound business decision due to the cost advantage it offers. The crucial question arises when it comes to the pricing of refined products. Will Dangote Refinery price its products as if they were refined from Brent oil, or will they pass on the cost savings to consumers by offering competitive prices?

If Dangote Refinery chooses to sell its refined products at a price reflective of WTI cost, it would alleviate concerns among Nigerians.

Another major concern would be the pressure on dollars (or foreign exchange), which the country is currently dealing with.

I doubt if its just the cost difference that led Dangote to US, considering the cost of shipping, tax, and the fact that the difference in price between the grades is just 5$.

I think the frustrations of relying on Nigerian oil with all the disruptions and breach if agreements may just be the main reason.

We all saw how he literally begged for crude supply from Nigeria since November last year, and the miserly 6million barrels they agreed to give since then, a Refinery that needs almost 10million barrels a month for now, and more than 18milliin barrels per month on full production.

BullBearMkt:
DANGOTE REFINERY SET TO IMPORT CRUDE OIL FROM THE US

This headline weak me I no go lie. On "cost-basis" I doubt that. We just don't produce enough. We are yet to meet our OPEC quota. We struggle with that. I wonder if NNPCL can even meet-up with their 300Mbbl/day as 20% equity stake. We have spread thin towards resource-back loans especially with crude oil. This country ehn!!!

Mpeace:
I doubt if its just the cost difference that led Dangote to US, considering the cost of shipping, tax, and the fact that the difference in price between the grades is just 5$.

I think the frustrations of relying on Nigerian oil with all the disruptions and breach if agreements may just be the main reason.

We all saw how he literally begged for crude supply from Nigeria since November last year, and the miserly 6million barrels they agreed to give since then, a Refinery that needs almost 10million barrels a month for now, and more than 18milliin barrels per month on full production.

You've introduced another aspect into the discussion, which is valid. Nevertheless, the cost of $5/barrel, up to a maximum of 3 million barrels on a vessel, is substantial. That apart, ensuring an uninterrupted supply of crude oil is of equal significance

Mfunkynation:

Haha ...
don't be scare ni..
Quote the person now

DANGOTE REFINERY SET TO IMPORT CRUDE OIL FROM U.S.

There is no problem though. Nigerian companies have actually been supplying the product to Dangote Refinery, but they couldn't meet up with the required quantity.
This is simply due to the fact that they had already entered into contracts to surply other companies before the emergence of DanRefinery and what they had remaining was not enough for the Refinery and Dangote has to make up for the short fall by importing from U.S.

Mpeace:
When I told someone here that he shouldn't rejoice yet on fcmb 200% increase in profit, these are the things I meant.
WEMA did over 250%, yet I think there is still more to come from the banking industry.
We shall see over 600% increase in PAT.

But in all of these, what really matters is the divudends that would be paid.

This is not true. WEMA did 100% not 250%

Zagee:


This headline weak me I no go lie. On "cost-basis" I doubt that. We just don't produce enough. We are yet to meet our OPEC quota. We struggle with that. I wonder if NNPCL can even meet-up with their 300Mbbl/day as 20% equity stake. We have spread thin towards resource-back loans especially with crude oil. This country ehn!!!

...it appears that OPEC's daily quota fluctuates in direct response to the international oil price. It's unfortunate if we are unable to meet that quota.

Jaakay:
This attempt by some people to bring down the price of Japaul is interesting. How are you comparing 2 companies operating in different industries? Ok o.

Dem wan jump in maybe
Me too want TIP to fall so I can jump in ...

BullBearMkt:

You've introduced another aspect into the discussion, which is valid. Nevertheless, the cost of $5/barrel, up to a maximum of 3 million barrels on a vessel, is substantial. That apart, ensuring an uninterrupted supply of crude oil is of equal significance

I think politics is also a consideration in the choice of who to buy from. Why buy from the USA when the USA's WTI is not the cheapest? I think Russian crude is cheaper than the USA's WTI. There are other better sources too.

I am happy that soon there will be competition. By then, the market will be forced to overcome all these politics at the expense of the masses.

Things are quiet here

Everywhere RED...

SonofElElyonRet:
Things are quiet here

DANGCEM. 13TR...

KarlTom:
Everywhere RED...

Blood on the dance floor... sorry trading floor

SonofElElyonRet:


Blood on the dance floor... sorry trading floor

Soon we go know who be long term investor...

omo TRanscorp dey show me pepper likewise Jaiz bank, but I believe Transcorp is a very good hold for the long term because of its power generating section, transcorp generates more power than Geregu and look at Geregu's price per share, I'm open to discussion on this topic tho

megawealth01:


We are watching

Didn’t take long enough

SonofElElyonRet:
Things are quiet here

Oando is not on full bid!

SonofElElyonRet:


Blood on the dance floor... sorry trading floor

The news of Dangote importing Crude oil is negative for the Naira. Some even believe he may actually be importing fuel along side crude in disguise. Recall PMB gave him an importation license prior to his exit.

The hope of Naira having some ease may be far fetched with this news and if the trend of devaluation continious, customers will default to banks. Thats a whole new level of write-off coming to the bank books.

Its not looking good for the Nigeria economy at the moment.

I will drop a metric cum analysis on this...

LILBIMS:
omo TRanscorp dey show me pepper likewise Jaiz bank, but I believe Transcorp is a very good hold for the long term because of its power generating section, transcorp generates more power than Geregu and look at Geregu's price per share, I'm open to discussion on this topic tho