QUARTER RESULTS: JAPAUL OIL, A G LEVENTIS


JAPAUL OIL & MARITIME SERVICES PLC: GETTING TOUGHER

JaPaul oil & Maritime plc is still finding the going rather tough, according to the financial results for the first quarter to March released recently.

from the figures, JaPaul not only recorded a massive drop in core business income, it could also not hold down costs to reflect the earnings level.

Core revenue dropped by 74.7 % to N785m from N3108.6m but only direct cost went down by percentage near this. Cost of sale closed the quarter at N771.2m, down 63 %.

In sharp contrast, general administration cost decreased by 39.9% to N738.8m while finance charges dropped by 10.6% only to N277.1m.

To make matters worse, lease interest grew by 9% to N98.2m; income from other sources decreased also rose to N47.8m from N47.7m and instead of gain recorded in the first quarter in 2015, foreign exchange loss of N158.4m was recorded as well.

In the end, total loss reported by Japaul within the quarter came to N1209.8m compared to N437.6m loss previously.

Naturally, this stretched the company's liquidity position some more with working capital closing at N4443.3m deficit as against minus N3584.1m previously. This was in spite of 65.7% increase in overdraft to N2167.9m.

JAPAUL OIL & MARITIME SERVICES (Nm)
                                   first quarter
                                                    2016                      2015
Total Income                              880.6                     3156.3
Core revenue                              786.0                     3108.5 
cost of sale                                 771.2                     2084.2
Administration                           738.8                     1230.0
Other income                               47.8                       47.7
finance  charges                          277.1                     309.9
Lease interest                               98.2                        90.1
Profit                                          (1209.9)               (437.6)
Working capital                         (4443.3)               (3584.1)
Overdraft                                   2167.9                   1308.5

A G LEVENTIS: BACK TO SQUARE ONE?

In 2015 financial year, A G leventis ended with profit from which it partially declared dividend. Now it looks like there will be a repeat of that in 2016, if the quarter figures to March are anything to go by.

According to the figures for the quarter,  A G Leventis lost its grip over direct costs and distribution expenses retaining only good grip over administration costs and reaping less financial charges.

Core revenue had grown by 34.3% to N3581.1m with total income even climbing higher at N3726.5m, up 35.7% but the pressure from cost of sale in particular  was just too much. It closed the quarter 81.8% up at N2946.7m while cost of distribution increased by 42% to N223m.

Thus, even though finance charges dropped by 40.8% to N128.4m and investment income rose by 63.7% to N72.7m, A G Leventis  settled for N169m loss compared to N111.7m profit by March 2015 that helped the year end closing.

Can A G Leventis regain lost grounds in the nine months left in the year? Only the immediate future can tell.

A G LEVENTIS (Nm)  First quarter
                                    2016                    2015
Total income              3726.5                  2745.8
Core revenue              3581.1                  2667.2
Cost of sale                 2946.7                  1621.2
Investment income       72.7                       44.4
other gains                   (49.5)                     34.2
Distribution                 223.0                     157.1
Administration            478.6                     438.0
finance charges           128.4                     216.8
Joint venture profit        3.36                    (1.03)
profit before tax           (169.0)                 111.7
Working capital           (84.2)                    121.2

                                

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