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Okomu Oil: High palm oil demand impacts stock output

The drop in palm oil import from Malaysia has given huge demand for local production of the commodity, and inevitably hiking the price. Data from the Malaysian Palm oil Council (MPOC) shows that import of palm oil from Malaysia to Nigeria declined by 34.7 per cent year on year as local production rises on increased investments. Nigeria crude palm oil (CPO) import from Malaysia declined from 262,065 metric tons in the first nine months in 2021 to 171,011 metric tons in the same period in 2022. Experts say the sharp drop in the volume of importation can be attributed to the ongoing massive investments by plantation owners in the country that has boosted local production in the last five years. This development is impacting positively on the share price of OkomuOil Palm (OKOMUOIL) listed on Nigerian Exchange Limited (NGX). The current share price of OKOMUOIL is N181.20. OKOMUOIL closed its last trading day (Friday, February 10, 2023) at 181.20 NGN per share on the Nigerian Stock Exchange (NGX). Okomu Oil Palm began the year with a share price of N165.00 and has since gained 9.82 per cent on that price valuation, ranking it 33rd on the NGX in terms of year-to-date performance. Okomu Oil Palm is the 84th most traded stock on the Nigerian Stock Exchange over the past three months (Nov 11, 2022 – Feb 10, 2023). It has traded a total volume of 8.39 million shares—in 2,063 deals—valued at NGN 1.41 billion over the period, with an average of 133,154 traded shares per session. A volume high of 1.11 million was achieved on February 9, and a low of 3,178 on December 9th, for the same period.


Okomu Oil Palm Plc posted its unaudited financial statements for the third quarter that ended September 30th, 2022, reporting a profit after tax of N1.213 billion. This represents a 41.32 per cent decrease compared to N2.067 billion reported in Q3’21. The unaudited results show that turnover increased by 27 per cent to N9.421 billion from N7.418 billion as of Q3’21. The company’s revenue was driven by a significant rise in revenue from local sales of oil palm and rubber. Earnings per Share (EPS) dropped by 41.47 per cent to 127 kobo from 217 kobo as of Q3’21. Meanwhile, the cost of sales rose by 289 per cent to N4.723 billion from N1.214 billion in 2021. The increase was due to energy costs and raw materials import with its attendant foreign exchange burden. The oil palm segment contributed 98.26 per cent of the total cost of sales to N4.641 billion as against N878.767 billion in Q3’21. Meanwhile, profit before tax decreased by 49.87 per cent to N1.188 billion from N2.370 billion as of Q3’21. Gross Profit also dropped by 24.27 per cent to N4.698 billion in Q3’22 from N6.204 billion in 2021. Its operating expenses dropped by 13.54 per cent to N3.332 billion in 2022 from N3.854 billion the previous year, while the company’s total comprehensive Income decreased by 41.32 per cent to N1.213 billion from N2.067 billion in 2021.


Shareholders of the company were expected to have received another interim dividend of N2.00 for the period ended September 30, 2022. The dividend, which amounts to N1.91 billion, was due to be paid electronically to shareholders whose names appear on the Register of Members as at November 15, 2022, and have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into Bank accounts. Investogist recalls that Okomu Oil Palm Company Plc in August paid N7.00 as an interim dividend for the period ended June 30, 2022. Shareholders, who are yet to complete the e-dividend registration, are advised to download the Registrar’s E Dividend Mandate Activation Form, which is also available on the website of the Registrars: www.cardinalstoneregistrars. com, complete and submit to the Registrar or their respective Banks.


Okomu Oil Palm traded at 181.50 this Friday February 10, decreasing 3.50 or 1.89 per cent since the previous trading session. Looking back, over the last four weeks, Okomu Oil Palm lost 10.00 per cent. Over the last 12 months, its price rose by 42.02 per cent. Looking ahead, the management forecast Okomu Oil Palm to be priced at 177.53 by the end of this quarter and at 167.25 in one year, according to Trading Economics global macro models projections and analysts expectations.


Okomu Oil Palm Company Plc is a Nigeria-based company engaged in cultivation of oil palm, processing of fresh fruit bunches into crude palm oil for resale, rubber plantation and processing of rubber lumps to rubber cake for export. The company operates through two segments: Palm oil products and rubber products. The company produces banga cooking oil and natural rubber products. The company’s plantation carries on the business of oil palm and rubber cultivation. The company has ongoing plantation operations in Cote D’ivoire, Liberia, Guinea, Cameroon, Kenya and Indonesia.


Development of oil and rubber plantations. Palm oil milling, palm kernel processing and sale of wet cup lumps, Okomu Oil Palm is listed on the Nigerian Stock Exchange (NGX) since September 9, 1997. It is traded on the NGX under the ticker symbol “OKOMUOIL.”

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The International Securities Identification Number (ISIN) of NGX:OKOMUOIL is NGOKOMUOIL00. Okomu Oil Palm is currently the 20th most valuable stock on the NGX with a market capitalisation of N173 billion, which is about 0.584 per cent of the Nigerian Stock Exchange equity market.

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