Companies

Total Nigeria, Transcorp Hotels, year-to-date dividends hit N31bn

by TELIAT SULE

February 26, 2018 | 1:17 pm
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Transcorp Hotels and Total Nigeria last week joined the early filers to announce their audited report for the year ended December 31, 2017, in compliance with the regulatory provisions which require listed companies to publish their audited reports within 90 days after their financial year has ended.

While Transcorp Hotels declared 12.45k dividend per share translating to N0.946 billion, Total Nigeria announced N14/share final dividend amounting to N4.75 billion, and their corporate actions took the total dividend announced in 2018 to N31 billion, BusinessDay Dividend Monitor shows.

Transcorp Hotels maintains a controlling interest in Transcorp Hotels Calabar Limited, Transcorp Hotels Port Harcourt Limited and Transcorp Hotels Ikoyi Limited.   Transcorp Hotels’ gross revenue for the period declined by 9.6 percent to N13.84 billion in 2017 as against N15.31 billion realised in 2016. Profit after Tax (PAT) fell to N2.68 billion in 2017 compared with N4.09 billion in December 2016. Consequently, the 12.45k dividend per share declared in this dividend season is 69 percent lower than 40k per share paid last year March.

Our in-house analysts attributed the decline in Transcorp Hotels’ gross earnings, profit after tax and dividend to the general macroeconomic environment. This is because based on the nation’s GDP and VAT figures for 2017, the recreation and tourism sub sector is yet to be out of recession.  According to the GDP data obtained from the National Bureau of Statistics (NBS), accommodation and food services; art, entertainment and recreation sub sectors all recoded lower economic activities based on the third quarter NBS GDP figures. Economic activities in the art, entertainment and recreation sub sector contracted by 30 percent as at the end of the third quarter 2017. Similarly, Valued Added Tax (VAT) from the hotels and catering sub sector recorded a marginal growth of 0.5 percent in 2017.

The two major shareholders in the firm are the Transnational Corporation of Nigeria Plc which controls 83.47 percent shareholding and the Ministry of Finance Incorporated that controls 11.02 percent interest in the company.  The closure date is March 7, 2018 while dividend will be paid to members on March 19,2018.

Total Nigeria witnessed a marginal decline in gross revenue from N290.95 billion in 2016 to N288.06 billion in 2017. Profit after tax fell by 46 percent to N8.02 billion in 2017 down from N14.80 billion in 2016.  The Register of Members will close on March 16, 2018.

“ On Friday the 22nd of June 2018, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at Friday the 16th of March , 2018 and who have completed the e-dividend registration and mandated the Registrar to pay dividends directly into their bank accounts”, Total Nigeria said in a note to the NSE.

 

Index Returns in Jan 2018 2018 YTD Returns

( Feb 23, 2018)

YTD Returns same period in 2017                (Feb 24, 2017)
All Share Index(ASI) 16.0% 11.32% -6.04%
NSE CG Index NA 1.17% NA
NSE Premium Index 20.5% 16.11% -2.66%
NSE Main Board Index 13.3% 8.52% -8.14%
NSE ASeM Index -1.4% -1.44% 0.32%
NSE 30 Index 15.6% 10.79% -7.17%
NSE Banking Index 23.3% 21.35% -0.13%
NSE Insurance Index 13.0% 12.05% -2.60%
NSE Consumer Goods Index 5.8% -0.26% -16.89%
NSE Oil/Gas Index 10.7% 5.44% -9.58%
NSE Lotus Islamic Index 7.6% 4.10% -13.40%
NSE Industrial Index 20.7% 15.79% -3.21%
NSE Pension Index 21.9% 15.81% -4.38%
Market Capitalisation 16.8% 12.25% -5.50%

 

 

Announcements & Appointments

  • Tripple Gee & Company appoints Adenike Onasanya as the Company Secretary.
  • Med-View Airline appoints MAC Interiors to reconfigure the cabin of Boeing 767-300ER(5N-BQN) aircraft.
  • Paints & Coating Manufacturers gets Shareholders’ approval to delist from the Official List of the NSE.

Corporate Governance Index debuts, gains 1.17 percent in first week

The management of the Nigerian Stock Exchange (NSE) and the Convention on Business Integrity (CBi) increased the number of sub sectoral indexes with the introduction of Corporate Governance Index which became operational on Thursday February 22, 2018. Symbolically represented as the NSE CG Index, the sub sectoral index will capture the performance of the 35 CGRS-rated companies through their market capitalisation, free float and corporate governance rating scores.

The NSE CG Index closed last Friday at 1,717.34 points, representing an increase of 1.17 percent over 1,697.40 points recorded on its debut.  The index will be reviewed twice a year in order to add newly qualified CGRS-rated companies and to remove from the list those companies that fail the test.

The NSE and CBi during the week held a certification ceremony for 35 companies and 437 directors that made it over the 70 percent threshold for the Corporate Governance Rating System (CGRS) process.

 

“The launch of the CG Index is an important milestone to strengthening listed companies by tracking their corporate governance practices. This index will increase transparency in our market and provide investors additional data points upon which to make sound decisions. I congratulate the companies that have successfully completed the process and I expect that they will be more positively looked at whilst trying to raise and access capital within or outside of our jurisdiction”, Oscar Onyema, the chief executive officer, The Nigerian Stock Exchange (NSE), said.

The companies were awarded the CGRS certification while the directors were awarded certificates for success in the Fiduciary Awareness Certification Test (FACT), which is a key component of the CGRS.  The CGRS was launched on November 3, 2014 after a successful pilot phase involving a number of companies listed on the NSE some of which are now listed on the Premium Board.

 

Equities shed N24 bn as profit taking moderates

Listed equities on the Nigerian Stock Exchange (NSE) shed N24.4 billion last week following moderation in profit taking. The market capitalisation closed last Friday at N15.28 trillion compared with N15.30 trillion the previous week. By implication, the market capitalisation of listed equities closed week to date lower at negative 0.16 percent. However, year to date, the market capitalisation closed higher at 12.25 percent, although this still falls short of the stellar performance the market recorded in January.

Similarly, the All Share Index (ASI) closed last Friday at 42,570.89 points which also translated to a marginal decline of 0.16 percent when compared with 42,604.40 points its closing figure on February 15, 2018.  Year to date, ASI closed higher at 11.32 percent.

Year to date, all but the NSE ASeM Index and NSE Consumer Goods Index closed in the positive territory. The NSE Banking Index posted the highest return year to date at 21.35 percent as it closed at 576.95 points as against 475.44 points on the last trading days in December 2017.  The NSE Premium Index was up 16.11 percent YTD. It closed at 2,977.15 points compared with 2,564.13 points. The NSE Insurance index ended the week at 156.16 points in contrast to 139.37 points on the last trading day in December 2017, representing an increase 12.05 percent.

Investors traded 2.018 billion shares valued at N21.74 billion in 25,496 deals last week compared with 2.94 billion shared traded in the previous week estimated at N27.924 billion in 28,567 deals.  A total of 102 stocks were traded and 26 recorded price appreciation; the prices of 9 stocks declined while the prices of 67 stocks remained unchanged during the period.

Exchange Trade Products (ETPs)

Investors traded 111,794 units of ETPs valued at N1.806 billion done in 10 deals as against 25,586 units traded in the previous week worth N3.004 billion executed in 11 deals.  VETBANK and STANBIC ETF30 were the most active ETFs.

Bonds

A total 9,963 units of the Federal Government bonds were traded valued at N10.06 million done in 21 deals in contrast to 2,785 units worth N2.627 million which were executed in 16 deals in the week before.  The most active were FGS2019S1 and FGS2020S3.

 

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by TELIAT SULE

February 26, 2018 | 1:17 pm
12893  |   93   |   0  |   Start Conversation

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