BOC GASES ROLLS UP SLEEVES.

When the going gets tough, goes the popular saying, the tough gets tough. That is, roll up their sleeves.
For BOC Gases PLC, the quarter to September turned out to be wake up call for rolled sleeves.
From the figures to September released recently, BOC Gases found itself with three months loss to September due to rising raw materials cost, Naira devaluation; tough operating environment and low demand.
Thus, turnover for the three months dropped to N502.8m from N573.8m while cost of producing the goods sold increased to N297.9m from N285.2m and  administration costs came to N133.9m from N120.7m.
It was only selling and distribution cost that went down to N82.6m from N117.8m.
In the end, BOC Gases ended the three months with N14m loss as against N50.1m profit same time in 2014.
However, this only took lots of shine from performance for nine months to September. Profit before tax managed to then close September at N35.8m, down 81.8% on previous 196.6m. All because within nine months, turnover drop came to 5% at N1534.3m while cost of sale road by 16.9% to 847.5m;and administration costs closed at N393m, up 14%.
There was also finance cost which in the nine months came to N20.9m compared to zero charge previously amidst 9.19% decrease in finance income.
The new finance charges apparently mainly from current and non-current borrowings of N92.3m and N46.2m respectively.
Now, BOC Gases management assured that sleeves have been rolled to do a more effective with controllable costs.
SURE:
* The new battle can be more effectively fought if imported inflation due to Naira value impact on imported raw materials is held in check.
* The fact also, being an industrial products producer, the more the economic environment becomes unfavourable, the less the demand for it's products .

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