NO GAS LEAKS FOR BOC GASES NIGERIA PLC

As the Nigerian economy continues to recover, all is inded going well for BOC Gases Nigeria plc and it looks set to end the current nfinancial year in flying colours.

According to half year figures released last week, total income of BOC gases was up by 34.2% to N1.335bn well ahead of equally comfortable 30.3% growth in core business revenue to N1.207bn and as Other income rose by 34.2% ton N89m and finance income grew in multiples from just N1.93m to N38.6m by June 2017.

At the same time, BOC Gases had a good and firm hold over its costs. Cost of sale, for example rose by 22.9% to N674.6m, that is far below core revenue growth; administration expenses closed 44.4% down at N113.5m while finance charges dropped by 44.5% to N28.1m.

In the end, it was only 46.6% increase in distribution costs to N231.7m that posed any threat to the company's bottom line within the period but that was easily absorbed for resounding growth in profit before tax from N33.45m by June 2016 to N199.4m this year.

Interestingly, the trend is likely to improve on this half level, not get worse. That is if 2016 flow of income and out flow of expenditure are anything to go by.

By 2016 half year, none of the income flows were up to 50% of the final income for the year and so, the best of the year was ahead in the second half. More importantly, finance income by June last year was just 14% of the full year figure which implied momentum still ongoing in the new year.

Also, bu June last year, finance cost for the whole year was 61.8% accounted for thus implying that the drop in the second half of that year continued into 2017 and should continue in the second half ahead.

Thus, even though BOC Gases profit margin had crossed into double digit at 14.9% by June compared to 3.36% by 2016  first half, the chances are that it should get better still by year end.

BOC GASES NIGERIA.  Nm Half year

                                                                        2017                      2016
Total income                                                1335.1                      994.8
Core revenue                                               1207.5                      926.6
cost of sale                                                     674.6                     548.8
Gross profit                                                    532.9                     377.8
Other income                                                   89.0                     145.1
Distribution                                                   231.7                      158.0
Administration                                              113.5                      204.0
Operating profit                                            188.9                        82.1
Finance income                                              38.6                          1.93
Finance cost                                                   28.1                         50.6
Profit before tax                                            199.4                        33.45
Profit margin%                                                14.9                         3.36

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