RAK UNITY PETROLEUM PLC: RAK, NOT CRACK.

The times are tough especially for down stream oil industry of Nigeria but no cracks in Rak Unity Petroleum fortunes only threats at least by six  months to September.
The good turn however took place more in the second quarter especially in terms of cost of sale 33.9% dropped to N1138.3m from N1770.2m ahead of 32.4% decrease in revenue to N1197.5m.
This allowed full six months turnover decrease to come to 41.8% to N2320.2m closely followed by 41.7% drop in cost of sale.
In view of this, mid year gross profit went down by only 9.59% despite the huge drop in turnover and as second quarter gross profit rose by 23.4% to N107.5m.
However, second quarter 114.9% increase in personnel cost to N6.81m almost put spanner in the works. But in that same quarter, administration cost dropped by 0.93% to N21.4m.
Thus in spite of the sharp decrease in six months revenue operating profit went down by only 19.3% to N54.5m and from there, profit before tax stopped at N55.5m down 18.1% as investment income chipped in its widows might of N1m.
This meant that 2.43% profit margin clocked in second quarter helped six months figure to 2.38%, well ahead of 1.7% by September 2014.
HENCE:
* No crack threat will come from any where if personnel cost growth can be checked in the next half year.
* This is hoping too that cost of sale and administration costs continue to stay within realities.

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