₦airaland Forum

Saudi oil giant Aramco posts drop in full-year profit, slashes dividend

Source: CNBC
https://search.app/ihvJ

Streetinvestor2:
Lol.. I like your joke.
We put our money as shareholders because we sent our money to create value for us.FBN has really not created value for shareholders since we participated in the PO of #33.Na bad loan dey take finish shareholders. Make this project no come become another pipe to drain the remaining blood

FBN has Size, Capacity, and now Femi, to withstand all shocks, so no shaking.

Streetinvestor2:
You think this new tax bill na joke.Just wait and see the kind money it will bring if it finally succeed which I believe will go through.
It empowers government to collect tax from your bank account if you are billed. If yo vex you can go to court. The bank is under obligation to reports your commulative transaction exceeding a particular bench mark for the yr to tax body.

Of cuz the new tax bill is the new "Govt Oil". (though not yet implemented)
I was just emphasising on decline in upstream revenue having greater impact on the economy (Including ngx) than the effect of reduced import arising from DR.

zendi:
FBN has Size, Capacity, and now Femi, to withstand all shock, so no shaking.

That's enough

GeneralDae:
Yes but I think the Nigerian economy is more sensitive to low crude oil production than it is to prices as long as oil prices can stay above $55 per barrel. If we refine locally, it reduces the pressure on FX. Correct me if I’m wrong, but I don’t think crude oil sales dominate FG revenues like in 2016, it only dominates exports (80%) but if it still does, then increased production to at least 1.8 million bpd this year would help. But crude oil prices has the effect on FX which can be mitigated to an extent via reduced importation.

OK, I agree at the bolded..

Though as someone previously stated before now on low production that
Increasing our production quotas across all the Oil-wells even above OPEC's recommendation can cover for the decline-gap in price to a very large extent..

Nice!
Gradually the dark blue will vanish...

GeneralDae:
True. The Dangote refinery is ramping up and we have reduced petrol imports by so much this year.

The yellow in this data signifies Port Harcourt Refinery and the blue line signifies imports, the DORC cabotage is Dangote supply via sea and DORC trucking is Dangote supply via truck. Local production dominated the market over imports for the first time in a long while in February 2025.

Source : CITAC Africa.

You ehn

chimex38:
Otedola office go dey ontop.

The Billionaire wan see the universe from there
and especially monitor some of these FBN cacus Directors

Nailed it 👍🏾

GeneralDae:
Yes but I think the Nigerian economy is more sensitive to low crude oil production than it is to prices as long as oil prices can stay above $55 per barrel. If we refine locally, it reduces the pressure on FX. Correct me if I’m wrong, but I don’t think crude oil sales dominate FG revenues like in 2016, it only dominates exports (80%) but if it still does, then increased production to at least 1.8 million bpd this year would help. But crude oil prices has the effect on FX which can be mitigated to an extent via reduced importation.

chimex38:
That's enough

chimex38:
That's enough

Femi too a Cowboy and not a Saint oh.He did short change shareholders as ceo of forte oil before he sold. The new owners then finished minority shareholders.
I don't equally trust him.He is good at manipulating stock price.
I was surprised the anchor of that programme could refer to him to buffet of ngx.How now.
Femi and buffet are two parallel lines based on principles

Waiting for Transcorp at N28 and Ucap at N10…..

Coolcash1:
Waiting for Transcorp at N28 and Ucap at N10…..

AGBA is still waiting for gtb at 15

yMcy56:
Caverton is presently on full offer @2.52!!
Don't buy now....you can wait for it at circa N2....
Or, once it's getting bids, I'll let you know.... hope I'll remember to be checking it for you.
* Full offer means it's available for sale in market with zero bid for now

You may have to open account with a broker with live trades. It will help you to monitor what's happening in market.

** Disclaimer: Remember anything can happen in market at any time. Just relay what was observed so far in market to you**

Thank you so much. I really appreciate.

Coolcash1:
Waiting for Transcorp at N28 and Ucap at N10…..

Please, spend your coolcash to get both stocks now. I don't think both stocks will reach your bus stop. I know UCAP is a very good stock, it is because of OS that the dividend was small. Can't really say the same for Transcorp.

Coolcash1:
Waiting for Transcorp at N28 and Ucap at N10…..

Hope it's not 2008 repeating itself bicos of Trump's Trade World War.
Those exposed to American stocks, are they falling? In which case you could wait for Zenith at 12 as people sell off here to go and buy gems that have become cheap over there.

Streetinvestor2:
Femi too a Cowboy and not a Saint oh.He did short change shareholders as ceo of forte oil before he sold. The new owners then finished minority shareholders.
I don't equally trust him.He is good at manipulating stock price.
I was surprised the anchor of that programme could refer to him to buffet of ngx.How now.
Femi and buffet are two parallel lines based on principles

Well, cowboy to an extent no doubt.
But for where Wale, Jegede, otudeoke,etc dey, na saint .

His Geregu Company has maintained top Cooperate Governance, dividend and dissemination of timely information consistency for 2-3yrs since listing. He manipulated helped share price appreciate join for shareholders from IPO.

He's rolling with Dangote, so he doesn't have to smear his name that much if he really want DR $$$Dollars domiciled in FBN.
I want to believe the old ote of forte-oil is semi gone.
Of cus, he can't be equated with Buffet..na normal Media hype.

I believe he is richer, more influential and connected than before.

Will he do what it takes to see to the tower completion.?
As @Zendi stated.
No_shaking

From the financial statements of Dangote Sugar Refinery Plc for 2024, we can analyze the arguments of both individuals.

Key Observations from the Financials:

1. Revaluation and Its Effect on Profit

A revaluation surplus of ₦432.17 billion was recorded under Other Comprehensive Income (OCI).

The income tax on this revaluation surplus was ₦106.57 billion, leaving a net revaluation surplus of ₦325.6 billion.

This suggests that the revaluation gains were not part of the profit for the year but rather recorded under OCI.

2. Losses Before and After Taxation

The loss before tax was ₦270.89 billion, and after tax, the net loss stood at ₦192.6 billion.

This means the company was in loss even before considering any revaluation gains.

3. Foreign Exchange Losses

The company suffered foreign exchange losses of ₦201.88 billion, which significantly impacted its financial results.

This loss was largely due to Naira depreciation, making it an unrealized forex loss that could be reversed if the Naira strengthens further.

4. Interest Expenses and Cost of Finance

Interest expense on bank loans was ₦7.25 billion, which is quite significant.

If interest expense exceeds operating profit, it indicates financial strain.


Evaluating the Arguments:

Guy Osita's Claims

He argues that the revaluation was included below profit for the year, affecting EPS negatively. However, the revaluation was not included in the profit for the year but was recorded under OCI.

He also claims that even if the ₦208 billion revaluation is removed, the company would still be in losses. This is correct since the loss before tax was already ₦270.89 billion.

He is correct about the high interest expenses exceeding operating profit, which is a financial concern.

However, his claim that the company "played on intelligence" does not hold since the revaluation was properly accounted for in OCI.


Guy Street's Claims

He correctly notes that the revaluation was not based on physical assets but forex-related losses. This aligns with the financials, where a large portion of losses came from unrealized forex losses.

He also mentions that the company still has over ₦200 billion in unrealized forex losses, which could be written back if the Naira appreciates. This is accurate, as a large part of the losses were from exchange rate fluctuations.

His claim that technically, the company made no loss is incorrect because the core financial results still show a net loss of ₦192.6 billion, excluding the revaluation effects.

He is right about most forex dealings being forward contracts, meaning values may change at future payment dates, impacting reported forex gains/losses.


Final Verdict: Who is More Correct?

Guy Osita is correct in pointing out that the company is still in losses even without the revaluation, and interest expenses are high. However, his understanding of how revaluation is accounted for is flawed.

Guy Street has a better grasp of the nature of forex losses and revaluation, correctly identifying unrealized forex losses as a factor. However, he is wrong in saying the company technically made no loss.


Thus, Guy Street has a stronger argument based on a deeper understanding of forex losses, but his statement about the company not making a loss is incorrect. Guy Osita is right about the losses and interest burden but misunderstands revaluation treatment.

chimex38:
Well, cowboy to an extent no doubt.
But for where Wale, Jegede, otudeoke,etc dey, na saint .

One of the above na old man to appear for court and young man to jump over border, Nigerian Cowboiz !

Guinness MTO @81.6

zendi:
One of the above na old man to appear for court and young man to jump over border, Nigerian Cowboiz !

The sight of a Lion revives even a dead adrenaline

Agbalowomeri:
Guinness MTO @81.6

Is the MTO price N81.6 fixed and non - negotiable?

megawealth01:
Not FBN

The owner has a name.

It only shows that that they have been operating like a mafia group in the bank

SonofElElyonRet:
Marina is CBD. Not zoned residential

Lagos state government can convert it to a residential/commercial zone.

We have a lot of vacant skyscrapers at Marina,

Great Nigeria House, NICON building, NITEL building, Bull House (former head office of Conoil) and many more that are rotting away.

Raymond house, the former head office of UBA was in that group. Till Afriland Properties took over.

Look at the former Federal Secretariat at Ikoyi, that is also rotting away.

In a city where we have serious housing deficit, this is a waste. NITEL building a 35 storey building that used to be the tallest in West Africa is just lying fallow for almost 30 years


Most of those properties are rotting away because the businesses moved their operations from Marina to Victoria Island. By the way Victoria Island was initially planned for residential.


Converting those vacant properties will be good for the workers.

Imagine working at Marina and your house is just 10 minutes walk to the office or you can even go home to have your lunch during break

Streetinvestor2:
Do they real need such building. I hope it is not whr to waste the fund raised they are creating. What value does this project bring to shareholders should be the big question

Someone said it was done to make savings on taxes, they have always been wasteful at FBN.

The new head office will be at Eko Atlantic City, I have a very conservative figure of over N150 billion as what would be spent on the project

DeRuggedProf:
Final Verdict: Who is More Correct?

Guy Osita is correct in pointing out that the company is still in losses even without the revaluation, and interest expenses are high. However, his understanding of how revaluation is accounted for is flawed.

Guy Street has a better grasp of the nature of forex losses and revaluation, correctly identifying unrealized forex losses as a factor. However, he is wrong in saying the company technically made no loss.


Thus, Guy Street has a stronger argument based on a deeper understanding of forex losses, but his statement about the company not making a loss is incorrect. Guy Osita is right about the losses and interest burden but misunderstands revaluation treatment.

Does it look to you like the naira will reverse? From where I stand, it’s becoming increasingly unlikely. I once thought ₦1,000 was possible, but that no longer seems realistic given both our economic performance as a country and the price of crude.

Like I said, even at below ₦30, the stock is very risky. Street is basing his hopes on a stronger naira, but the outlook doesn’t look promising.

That said, we’ll see—anything can happen. I might even hit that ₦1 billion mark this year and retire peacefully.

Another thing—when will the loss be realized? DangoteSugar is a company that continuously buys raw materials, so how long will it take before its obligations to creditors must be honored?

This situation is different from when banks recorded forex profits, as those were based on when they chose to convert to naira. In this case, there is a limited window—you can’t owe indefinitely, especially when you constantly need more goods.

This is an ambush judgment—you only picked the parts that suited you. Did you check my other posts? Those were the basis of my exchange with "Guy Street."

It seems like you’re also heavily invested in DangSugar.

DeRuggedProf:
Guy Street's Claims

He correctly notes that the revaluation was not based on physical assets but forex-related losses. This aligns with the financials, where a large portion of losses came from unrealized forex losses.

When a self-proclaimed judge does not understand his subject, can we say that his judgment is null and void?

Look at the financial notes on page 58—they clearly state that the revaluation includes physical assets, from land to computers and even furniture (even aircraft ), adding up to over ₦400 billion. This matches what is reported on the income statement.

So, I was correct—any other company could revalue its furniture and add billions.

Dangpte dey play with una sense, walai

emmanuelewumi:
Lagos state government can convert it to a residential/commercial zone.

We have a lot of vacant skyscrapers at Marina,

Great Nigeria House, NICON building, NITEL building, Bull House (former head office of Conoil) and many more that are rotting away.

Raymond house, the former head office of UBA was in that group. Till Afriland Properties took over.

Look at the former Federal Secretariat at Ikoyi, that is also rotting away.

In a city where we have serious housing deficit, this is a waste. NITEL building a 35 storey building that used to be the tallest in West Africa is just lying fallow for almost 30 years


Most of those properties are rotting away because the businesses moved their operations from Marina to Victoria Island. By the way Victoria Island was initially planned for residential.


Converting those vacant properties will be good for the workers.

Imagine working at Marina and your house is just 10 minutes walk to the office or you can even go home to have your lunch during break

Hope so

For Short-term trades in the banks; Price action shows Hammer yesterday

Respite for the pullback

Stochastic also in the buying zone

High probability of successful short-term, low profit-margin trades in the banks

Good morning Agbalowomeri.
Please when will there be a bull run on insurance stocks.
What is your outlook from March to June 2025.
Please respond.

Agbalowomeri:
For Short-term trades in the banks; Price action shows Hammer yesterday

Respite for the pullback

Stochastic also in the buying zone

High probability of successful short-term, low profit-margin trades in the banks

Risky, short term play. Momentum still suggests more pain.

Your Jan call out sent me down a rabbit hole and kept my Spider senses at high alert - thank you.

Agbalowomeri:
For Short-term trades in the banks; Price action shows Hammer yesterday

Respite for the pullback

Stochastic also in the buying zone

High probability of successful short-term, low profit-margin trades in the banks