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+--- Thread: Notore grosses N8.2b turnover in 3 months (/showthread.php?tid=28622)
Notore grosses N8.2b turnover in 3 months - Edoman - 02-07-2020
Notore grosses N8.2b turnover in 3 months
February 7, 2020
in Equities
NOTORE Chemical Industries Plc grew its top-line by 89.4 per cent to N8.18 billion in the first three months of the current business year as the agro-allied company begun to reap benefits of its production capacity development.
Key extract of the threemonth report for the period ended December 31, 2019 showed that turnover rose to N8.18 billion in 2019 as against N4.32 billion recorded in comparable period of 2018. Notore’s 12- month business year runs from October to September.
The top-line performance was due to improvement in plant’s reliability, which led to an increase in urea production volumes by 83 per cent from 44,076 metric tonnes in December 2018 to 80,777 metric tonnes in December 2019.
The report showed that Notore’s operating profit declined by 39 per cent from N3.34 billion to N2.04 billion.
This was due to a drop in other income by 78 per cent.
The company however recorded a loss of N1.39 billion in December 2019 with a net finance cost of N3.43 billion. The company expressed optimism that opportunities for better performance are high as the domestic fertilizer market is yet to reach its full potential.
According to the company, the fertilizer market in Nigeria during the period under review was robust as Notore sold all the urea that it produced during the period in both domestic and international fertilizer market.
On the outlook for the 2020 financial year, the company said it expects to exceed its 2019 financial year urea production figures and is also working on various financial initiatives to reduce its finance cost.
“The projected cost savings from Notore’s de-leverage is expected to further boost its profitability, in addition to a forecasted increase in production as TAM progresses.
Furthermore, Notore believes that the current Federal Government policies in the fertilizer space and demand for NPK and NPK specialty blends are quite favourable for its business, consequently, Notore will be producing a significant quantity of NPK and NPK specialty blends this FY to diversify its revenues,” Notore stated.
It added that the demand for urea and compound fertilizers, such as NPK, from the West African markets and neighbouring countries bordering the northern part of the country is also quite significant.
According to the company, constant natural gas, main feedstock for producing urea fertilizer supply has been one of its key strengths, as it is in line to achieve its 1,500 MTD name-plate production capacity following successful draw down of the TurnAround Maintenance (TAM) facility, which will be utilised to increase the plant’s reliability.
The company stated that it has commenced the ordering of critical components of the items under the TAM scope in order to keep with the TAM schedule.