Exxon Mobil Shares Again Drop as Q2 Earnings Fall Short of Expectations

 

 

Oil and gas company, Exxon Mobil, a major player in Nigeria’s oil and gas sector witnessed a three per cent drop in its share price after it missed analysts’ earnings estimate in the second quarter. The company reported earnings of $4 billion, or $0.92 a share, that missed analysts’ estimate of $1.24 a share. In three of the last four quarters, the company failed to beat the consensus earnings estimate.

While profits saw a miss, revenue beat market expectations. Total revenue and other income during Q2 came in at $73.5 billion versus the estimated $72.58 billion. “Second quarter results were primarily impacted by significant scheduled maintenance undertaken to support operational integrity,” said CEO Darren Woods.

Exxon’s plan to spend more than $200 billion to 2025 on new projects “might be the right thing for the business but that doesn’t mean it’s the right thing for the stock for the next 12 months,” Bloomber quoted Jason Gammel, a London-based analyst at Jefferies LLC, to have said by phone. Investors want “stable earnings and cash flow performance and returning cash to shareholders.”

Exxon, which has prioritised big project investment in Latin America and elsewhere, failed to live up to earnings, cash flow, debt and output expectations, reporting net income of $3.95 billion compared with expectations of $5.35 billion. In explaining the lower production estimate, Senior Vice President Neil Chapman said the figure took into account earthquake damage in Papua New Guinea that interrupted natural gas output.

“It’s not a big deal but it’s important to highlight what it is,” Chapman was quoted by Bloomberg to have said during a conference call with analysts. “We’re not focused on volumes. We’re focused on value.”

Exxon failed to fully capitalise on a Brent crude price that was almost 50 percent higher than a year earlier.

Exxon produced the equivalent of 3.6 million barrels of oil in the second quarter, well short of the 3.83 million expected by analysts, the Irving Texas-based company said in a statement. Maintenance and repairs at undisclosed oil fields more than offset output gains from U.S. shale and offshore Canadian assets, the company said.

Exxon’s results also took a hit from prolonged refinery repairs that hurt the company’s ability to cash in on swelling margins from processing oil into fuels, Chapman said.

“We’re not happy with the reliability performance” of Exxon’s refining fleet, said Chapman, a member of the 4-person management committee that oversees day-to-day operations along with CEO Darren Woods. There’s no “underlying deteriorating performance” issues.

Chevron, meanwhile, reported earnings of $3.41 billion, compared to a $3.94 billion forecast. And its $3 billion buyback announcement fell short of a similar announcement by Royal Dutch Shell Plc a day earlier.

Uber Driver-partner Wins Brand new Car with UberFREEKICK Campaign

 

 

 

lucky driver-partner signed on to Uber, today drove home a brand new car courtesy of Uber’s uberFREEKICK campaign. The presentation of the car was done at the Uber Greenlight Hub – a dedicated support centre for driver-partners in Lagos.

Speaking at the presentation, Lola Kassim; General Manager West Africa, Uber said: “Our unique brand proposition at Uber is that we are committed to creating business and economic opportunities, especially for driver-partners. We value our driver community and are always looking at ways in which we can make their experience more memorable on Uber. We’re excited to continue stimulating growth across a broad range of sectors within the Nigerian socio-economic space.”

The lucky driver-partner, Banjo Olayemi couldn’t hide his joy and surprise at being announced the winner of the brand new car. “I am very happy to be the winner of the brand new car; I almost didn’t believe it, but my name was called repeatedly. My appreciation goes to the management of Uber for this great initiative and for truly supporting drivers in word and in deed. Owning a new car means I can be more efficient with my work, and offer my riders excellent service.”

According to Osi Oguah; Senior Driver Operations Manager for Nigeria, Uber “This competition was open to all driver-partners with active accounts in Lagos or Abuja.” Shedding more light on the metrics for selecting a winner, he said: “The winner of the uberFREEKICK competition needed to complete 40 trips per week in Lagos or Abuja during the competition period, in addition to meeting other criteria.”

In the coming week, the uberFREEKICK train moves to the capital city of Abuja, where another lucky driver-partner will go home with a brand new car.

Uber recently commemorated its Fourth year of operations in the city of Lagos. The global technology brand also unveiled its new advert campaign tagged “Moments that Matter.”

1Marketing to Create 500,000 Jobs

 

 

To help in growing Nigerian economy and create jobs by closing the gap between manufacturers of Made-In-Nigeria products and Global buyers, 1Market.ng is shopping for one million manufacturers and distributors of made-in-Nigeria products across the country through its affiliate partners program.

1Market is a pioneering B2B, B2C online marketplace, specialising in bridging the gap between global buyers and Nigerian suppliers as well as creating an accessible ecosystem for showcasing, marketing and selling exclusively Made-in-Nigeria Products.

The scheme gives the participants the opportunity convenient to work from any location with Smart Phone, Tablet or computer system and earn a living.

The project manager of 1market.ng, Enyika Iheanyichukwu who spoke at the unveiling of the program in Lagos at the weekend told newsmen that it was a scheme that gives freedom of working at your pace and convenience while having guaranteed payment.

According to him, the affiliate program was a channel through which individual and companies could get paid by signing up vendors for 1market or selling 1market.ng products.

“The scheme has created the largest Made in Nigeria e-Commerce platform and is signing up over 1,000,000 manufacturers and distributors of exclusively Made-in-Nigeria Products across the 36 states of Nigeria and Abuja”, he explained.

By registering a Made-in-Nigeria Manufacturer/Distributor, the scheme, according to him, gives many benefits which include getting paid for registering manufacturers, earning commission by selling 1Market’s products, support from professional team, product catalogue with more than 5,000,000 selling products, among other benefits.

He said that once a partner completed form for pre-selection, a date would be communicated accordingly for training via a registered email.

Noting that the program would create jobs for Nigerians, he said that, “Nigerian people spending Nigerian Naira on Nigerian products equals Nigerian jobs. These jobs are the foundation of a thriving economy.

“If every Nigerian spent an extra N3.33 on Nigerian-made products, it would create almost 10,000 new jobs. And, if every builder used just five per cent more Nigerian-made products, it would create 220,000 jobs.

“When you buy Nigerian-made products, the proceeds remain in the Nigeria economy. The money you spend then pays the workers, that directly or indirectly created the product you purchased. When workers spend their money on Nigeria-made products, the Naira continue to be recycled. Every Nigerian worker also pay taxes on wages earned in Nigeria.

“Importing countries have little or non-existent regulations or standards for working conditions. By keeping our Naira in Nigeria, we are not supporting these horrible working conditions, especially long hours, exploitation of children, extremely low wages, among others.

Positive corporate earnings to lift equity trading

The release of more half year, H1’18, positive corporate results will spike trading on the Nigerian Stock Exchange, NSE, this week as equity trading drew to a positive close, finishing 58 bases points, bps, higher last weekend, majorly supported by oil and gas stocks.

Analysts have listed FCMB Plc which released positive earnings as stock to watch for the week.

Analysts at Vetiva Capital Management Limited stated:

“Though the market managed a positive performance at week close we believe the outcome of earnings releases will remain the major determinant of market direction in this week.

“That said, we foresee a mildly positive start to the week, noting the widely positive market breath at week close.

“FCMB is a stock top watch as it released its first half, H1’18 results on Friday last week. The company recorded an eight percent Year-on-Year (YoY) rise in gross earnings, in line with Vetiva estimate and a 90 percent YoY increase in Profit After Tax (PAT) 19 percent below Vetiva estimates.

“The stock gained 355 bps on Friday to settle at N2.04, a 38 percent Year to Date, YtD return.”

Meanwhile, analysis of market performance showed that the All Share Index, ASI, recorded a modest nine bps growth Week-on-Week (WoW) amidst notable losses recorded at mid-week.

The NSE All-Share Index and market capitalisation appreciated by 0.09 percent to close the week at 36,636.97 and N13.272 trillion.

Similarly, all other indices finished higher with the exception of the NSE Premium, NSE Consumer Goods, NSE Oil/Gas, NSE Industrial Goods, NSE Pension Indices that depreciated by 0.16 percent, 0.19 percent, 3.74 percent, 4.40 percent and 0.56 percent.

Thirty-one equities appreciated in price last week, higher than 16 in the penultimate week.

Forty-eight equities depreciated in price, lower than 59 equities of the penultimate week, while 90 equities remained unchanged lower than 94 equities recorded in the penultimate week.

A total turnover of 1.417 billion shares worth N16.739 billion in 19,832 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.665 billion shares valued at N14.834 billion that exchanged hands last week in 18,795 deals.

The Financial Services Industry (measured by volume) led the activity chart with 832.842 million shares valued at N8.823 billion traded in 10,851 deals; thus contributing 58.76 percent and 52.71 percent to the total equity turnover volume and value.

 

NBS releases 2017 GDP report

The Nigerian Bureau of Statistics (NBS) has released Gross Domestic Product (GDP) report for 2017.

According to the NBS, in 2017, real GDP turned to positive growth in the second quarter and sustained its acceleration on a year-on-year basis, while annual real GDP growth rate in 2017 was recorded at 0.82%, signifying economic recovery when compared to –1.58% in 2016.

Real Household Consumption and Government Consumption Expenditures generally declined in 2017 at –0.99% but improved compared to 2016 (-5.71%). Domestic demand was still weak.

Net Exports grew significantly in real terms in 2017, which was mainly driven by the strong performance in the third quarter. However, this was slower than 2016 (22%).

National Disposable Income declined by 1.52% in 2017, majorly due to the continuous decline in the largest component— Operating Surplus which recorded a negative annual growth rate, of –2.11%.

 

Insurance industry loses N100bn annually to capital flight in aviation

THE nation’s insurance industry loses N100 billion yearly to capital flight due to lack of adequate capacity to underwrite the high risk in aviation insurance business.
File: insurance
Commissioner for Insurance, Alhaji Mohammed Kari, who disclosed this in Abuja, said, “Insurance industry loses no less than N100 billion in the aviation sector annually to capital flight.”
He said that the National Insurance Commission, NAICOM, is making all efforts to improve the capacity of local insurance firms to enable them control substantial portion of the aviation insurance business in the country.
Kari noted that with the remarkable improvements recorded in the aviation sector within the last few years, there is hope of further stride in local content aviation insurance in Nigeria by 2010.
In an interview with Financial Vanguard , Deputy Managing Director of Africa Reinsurance Corporation, Africa Re, Mr. Ken Aghoghovbia, said aviation insurance is still far from local content.
He stated: “For aviation business, if you cannot retain much, you will be forced to retrocede a lot more than you can keep.”

11Plc shareholders get 800k dividend

 

 

SHAREHOLDERS of 11PLC (formerly Mobil Oil Nigeria Plc) have approved N2.6billion for payment as dividend translating to 800 kobo per share for its shareholders for the financial year ended December 31, 2017. However, the company‘s profit dropped marginally by 1.4 percent to N15.3 billion in 2017 from N15.5billion posted in 2016. However, financial sales revenue grew significantly to N125.26 billion in 2017, up by 33 percent from N94.11 billion recorded in 2016.
Speaking during its 40thAnnual General Meeting, AGM, recently in Lagos, Chairman of the company Ramesh Kansagra, said “I thank you all for recognizing and acknowledging our efforts in 2017, the positive year we saw a result of huge effort towards enhancing sales and marketing to bring further awareness to our products and services as far as the public is concerned”.
Shareholders lauded the company’s giant strides but expressed concern over the marginal deep in profit, a matter which the chairman ascribed to hard hurdles of operating in the industry.
Kansagra said: “As regards reduction in profitability, I will like distinguished shareholders to be aware that the cost of oil product business in Nigeria is essentially government regulated. We are all expecting the government to deregulate, but instead of deregulating, not only have they continued to regulate, they set the price at which we can sell some of our key products and what we can buy them.
Government has not largely encouraged private enterprise to thrive in this industry; private enterprises have very little money to make in the sale of oil products”.

National Devt: Nigeria in need of skills and professionalism—Onalo

 

 

 

Professor Christ Onalo, Registrar/CEO, Institute of Credit Management, Nigeria. At 61, has incredibly set himself apart from others through sheer hard and honest work; he has undoubtedly contributed immensely and perhaps more than anyone else to the growth and development of credit management profession in Nigeria and credit industry globally.
He has received professorial recognition from two foreign universities for his relentless and sustained effort in the development of world class credit management curriculum, intellectualisation of credit management as well as globalisation of the growth of credit management profession. Chris Onalo is indeed an indefatigable “Professor of Credit Management” with strong passion for knowledge impartation, a man of vision with creative enterprise who knows how to spot a vacuum and cause things to happen in the knowledge market. In this interview with Moses Nosike at the occasion of his 61st birthday celebration and the launch of his book, “Everyday Marriage Tonic”, he advised the youths on the way forward and his position on the state of the nation. Excerpts:
Professor Chris Onalo at 61 years…
I am excited today that although I am not one of the few Nigerians who had the privilege of being born with a silver spoon, but by the grace of God and with sheer hard work, doggedness, dexterity, resilience I was able to work my way to the top despite rejection and all sorts of bitter peels encountered in my struggle. I am also happy that there are notable personalities around the world with similar experiences we have here in Nigeria.
So it is a thing of great joy to say that all the efforts that one made was not a waste. Having said that, I advise that the present and future generations should also believe that it is possible to get to the top despite the challenges they face in Nigeria. You can climb the ladder of your life and get to the top successfully without being handicapped by any form of circumstance, not even the circumstance of not having anybody to sponsor you. For instance, I didn’t have anybody to sponsor me. Eventually in the course of life with determination one can get rid of what should have been an obstacle in life and still move to the top.
Let me also say this, it does appear to me that people that had it rough growing up usually become people of great character, perfectionists and determined to the core. They are possibility thinkers in its monumental proportion; so that if you are with them, hours of their life could become a huge rock to crack. The summary of that is, they are tough-minded people. This is because over the years, what they have had to pass through shaped their character. The same way conversely, if you are little thinker in life, nothing stops you from becoming a very lazy human being.
How can you relate your struggle and experience to the birth of the Institute of Credit Administration?
I didn’t jump into credit management. When I finished my primary school, I was left alone and the only thing primary education could fetch me was factory work at General Cotton Mills, Onitsha, Anambra State. I am an Ibaji man from Kogi State, but you see, life could take us to wherever. While in the factory I was busy thinking: “Is it what I would end up with?” Then as a factory worker I was earning about N50 per month, this was in the early 70s. It was a huge amount of money at the time. Rather than surrounding myself with girlfriends, buying clothes, giving to drinking, I said to myself “I will not live that type of life”. There in the factory I saw young people speaking good English and exercising leadership. So I concluded within me that I must go to school. From there, I enrolled myself in a commercial school, The National Institute of Commerce, Asaba where I spent three years studying Accounting, Commerce, Typewriting, Shorthand, Business method and Arithmetic. While still there I had enrolled with the Institute of Commerce, London professional examination where I made my papers.
This helped me to get an Accounting job as a clerk with Boskalis, a division of West Minister Dredging, Olodi Apapa Lagos. There I met a Dutch Site Engineer who was my boss, he had interest in me, that was how I started going everywhere with him. Through him, I got to know about the Institute of Credit Management in the United Kingdom (UK) in 1980.
I enrolled and by 1985 I qualified as an Associate Member which is equivalent to a first degree or H.N.D. From there I moved on to a wider spectrum in Credit Management. I didn’t have WEAC or GCE and so it was difficult for me to get into a conventional university and even if I had those papers, with financial constraint on one side I couldn’t have been able to cope in a conventional university because all that period, I had to work, study, buy books, read independently and enroll for external examinations. Thank God that at that time, some universities in the UK began to come up with ways to meet the educational needs of people who had my kind of circumstance, making them know that education is still available for them.
I was pleased to belong to a professional body, Institute of Credit Management, UK; that also connected me to National Association of Credit Management in the United States; I began to see the world of credit management and it was like a bombshell; my understanding got opened and that was the beginning of the idea to establish Nigeria’s Institute of Credit Administration (ICA). In 1992 when I returned to Nigeria, ICA was born. All the credit institutions and courses that drive a credit-cultured economy came into existence via my singular effort. Today, the ICA has become a chartered body.
Looking at the economy presently and the role of credit management, would you say, you have achieved your purpose?
As we speak, ICA has more than 5000 members. These are people managing credit across industries, the fore front of capacity building for those in Nigeria’s economy. If the concept of being candid is anything to go by, I could say that I have given birth to so many people professionally; as these people are working in Nigeria as credit managers, don’t you think I have contributed a lot to the development of this country? We have members of the Institute of Credit Administration cutting across both public and private sectors; university students, young graduates etc.
It is difficult for even Mr. President of the Federal Republic of Nigeria to close his eyes and say there is no person called, Professor Chris Onalo in Nigeria even though I may not have met him one-on-one; from the past Presidents of the Federal Republic of Nigeria down to the present, I have contributed to the economy which they manage and I have so many people in my profession that I gave birth to in Nigeria.
So, I’m very happy and proud to say that if I die tomorrow my legacy remains and lives on.
Internationally, how is ICA in Nigeria rated?
There is no country in the world today that does not have an institute for credit management – the body of experts for credit management. Nigeria’s ICA was established in 1992, it has grown and become an institution delighted by the eminent elites. The birth of the institute was a tough one. I didn’t have any “God-father”, rather I had people who wanted to make sure that they kill the birth of ICA.
One of the indigenous institutes worked so hard to kill the emergence of the Institute of Credit Administration and it looked as if they were succeeding in their effort, but I think a force they couldn’t understand emanated from somewhere and what they considered dead came out alive at the Federal Ministry of Justice; all that is a story for another day.
The delay stood for more than eleven years. Apparently as a human being I gave up the dream, but somehow I kept praying and God intervened. So, the Institute of Credit Administration, Nigeria is now number three in the world in terms of activity, influence, focus and drive after the US followed by UK. In 2005, a delegation from Kenya paid me visit when they heard about Nigeria’s ICA; they wanted to learn how we got started and asked if I could advise them on how to start a credit management institution in their country. Today we have Kenyan Institute of Credit Management. Ghana has their own, South Africa has theirs too. I think up to six African countries have Institutes of Credit Management.
From Economic Recession to the killing of innocent Nigerians, what is your take on the state of the nation?
My take on the state of the nation is simple; the president of Nigeria today is my friend. I have not met with him one-on-one, but I have met with him in series of dreams. Everybody can dream, but only the dreamer knows the content of his dream, and the motivation behind it. I am not nursing any ambition to become president of Nigeria, but I think I am one of God’s chosen watchdogs over this nation. I pray for this country a lot not because I want to become president, governor, minister but as a citizen of this country and as a well-traveled person, I have spoken at countless conferences and summits as if I were ambassador of the country. Nigeria is my country and I discovered that people are not loyal in this country.
Because we are human beings and we have mouth to talk, we are free to talk and say anything we want. If you were in the presidency you would better appreciate it. I don’t think that Buhari is anti-people even the previous presidents were not either. To be honest, I don’t see many Nigerians fit enough to criticise the government. People criticise because of personal interest, or in favour of someone with whom they have vested interest. Some criticise because they want to be recognised or noticed. At different levels we have compromised, we don’t have the mind of love, peace, unity and values.