RAK UNITY PETROLEUM: SELF INFLICTED PAINS?

The nine months figures to December 2015 by Rak Unity Petroleum seem to point to self inflicted pains that dampened the corporate take home.
Yet curiously it looked like improved staff take home brought on the pains.
According to the figures, revenue shrunk almost by double digit but staff cost in particular increased almost fourfold.
The drop in total income was 8.24%  to N1612.2m  as core income decreased by 8.32% to N1610.6m in spite of good growth in investment income to N2.6m from N0.6m.
Good enough the resultant drop in direct cost at 9.29% to N1550m was the first sign of good cost control in spite of the revenue decrease.
But first, staff cost jumped to N37.2m from N11m previously with the quarter to December being responsible for most of this thus implying the addition to the staff take home bill must have occurred then.
To make matters worse, administration costs ended the nine months too considerably higher. It closed at N69.7m compared to N34.5m previously.
Thus operating loss of N0.24m was recorded in the third quarter compared to N24.7m profit by corresponding previous quarter.
This depressed nine months profit before tax to N57.2m as against N92.7m previously.
Otherwise, Rak Unity Petroleum cruised fairly well with working capital easing to only N350.3m from N364.6m as it invested in plant and equipment to raise book value to N66.2m from N44.8m despite depreciation.
HENCE:
* If the staff bill increase was due to improved working conditions, the time was ripe for productivity to follow in step.
* Yes Ran Unity. Petroleum increase gain on N100 to N1.45 from N1.42 but of course, closing the year at that will not bring smiles to shareholders faces.

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