CAPITAL MARKET
Seplat posts 143% profit rise, declares 2.5 cents dividend
Seplat Energy Plc announced in its 2021 half-year financial results that its profit before deferred tax rose by 142.74 per cent to $62.10m (N42.70bn), while it declares an interim dividend of 2.5 cents per ordinary share. The company said its revenue in H1 2021 rose by 32.25 per cent to $308.80m from the $233.50m recorded in H1 2020. It said its cash in the bank stood at $298.80m while net debt was $456.40m. Punch
Anxiety over earnings pushes indices up by N327 billion in July
Anticipation of improved half-year (H1) earnings and accompanied dividend declarations triggered bargain-hunting on the equities sector of the Nigerian Exchange Limited (NGX) last month, causing investors’ fortune to soar by N327 billion in one month. Specifically, the market capitalisation, which reopened for the month of July at N19.756 trillion, rose by N327 billion to close on Friday, July 30, 2021, at N20.083 trillion. Similarly, the All-share index, which measures the performance of, listed equities increased by 648.52 points or 1.7 per cent from 37,898.56 to 38,547.08. Guardian
BANKING
CBN: No Plan to Convert Bank Customers’ Foreign Currency into Naira
The Central Bank of Nigeria (CBN) yesterday dispelled speculations that it was planning to convert the foreign exchange (FX) in domiciliary accounts of bank customers into naira. The bank further assured members of the public that it would monitor the commercial banks to ensure they meet the legitimate FX demands of customers. The bank’s Acting Director in charge of Corporate Communications, Osita Nwanisobi, dismissed insinuations in some quarters that the central bank planned to convert FX in the domiciliary accounts of customers into naira in order to check purported shortage of availability of the dollars. This Day
ECONOMY
Naira strengthens to 512/$1, banks sell dollar for N412
The naira appreciated against the dollar at the parallel market on Monday as deposit money banks set up foreign exchange teller points for customers in line with the directive from the Central Bank of Nigeria. The naira strengthened to 512 against the greenback at the parallel market from the 515/$1 at which it closed on Friday. It, however, fell by 0.02 per cent to 411.50/$1 at the Investors and Exporters’ window, with a forex turnover of $121.08m, according to FMDQ Group. The local currency had last week plunged to an all-time high of 525 against the dollar at the parallel market following the stoppage of the supply of foreign exchange to Bureau de Change by the CBN. Punch
OPEC July Oil Output Hits 15-month High As FG Asks Cartel for Higher Production Quota
Oil output from the Organisation of Petroleum Exporting Countries (OPEC) rose in July to its highest since April 2020 as the group further eased production curbs under a pact with its allies and a top exporter Saudi Arabia phased out a voluntary supply cut. OPEC countries pumped 26.72 million barrels per day (bpd), a Reuters survey found, up 610,000 barrels per day from June’s revised estimate, while output has risen every month since June 2020 apart from in February. This Day
Augusto & Co Assigns ‘AAA’, Stable Outlook on DBN
Top credit rating agency, Agusto & Co. (“Agusto”) has assigned a “AAA” rating, on the Development Bank of Nigeria (DBN) Plc (DBN), the highest rating possible on any institution. In summarising the rating, which aligns with the ‘risk-free’ rating of the Nigerian Sovereign, Agusto described DBN as “a development finance institution of impeccable financial condition and overwhelming capacity to meet obligations as and when they fall due.” Agusto stated: “Despite the COVID-19 pandemic, DBN increased its financial support to Micro, Small and Medium Scale Enterprises (MSMEs) and small-sized corporates through participating financial institutions”. This Day
NNPC lists conditions for oil majors’ divestment
The Nigerian National Petroleum Corporation (NNPC) on Monday listed a plethora of outstanding issues that have to be totally resolved before major oil companies can successfully divest their interests overseas. They are as follows: abandonment and relinquishment costs; severance of operator staff; third party contract liabilities; competency of the buyer; post-purchase technical, operational, and financial capabilities, especially in the era of activist investor’s sentiments against funding of fossil fuel projects and alignment with Nigeria national strategic interest. The Sun