Presco’s N1.5bn dividend for 2016 delights shareholders

Shareholders of Presco Plc, Nigeria’s leading producer of oil palm, have approved a dividend of N1.5 billion which is amounting to 150 kobo per share for the year ended December 31, 2016, showing an increase of 50 percent compare with N1 billion approved last year.

The company’s revenue increased by 50 percent from N10.4 billion in 2015 to N15.7 billion in 2016 and profit after tax increased by 772 percent from N2.5billion in 2015 to N21.7 billion in 2016  owing to gains on biological asset revaluation.

“This is one of the highest dividend the company has ever paid and we are very delighted with it. Our earnings and reserves have gone to an all-time high and we are in for a boom. Our reserve is N51.5 billion,” Peter Okoh, a shareholder of Presco Plc, told BusinessDay during the company’s 24th Annual General Meeting (AGM) held recently in Edo State.

“I am going to increase my holdings in the company because I know the future is very bright,” Okoh added.

Similarly, Goodluck Akpore, another shareholder of the firm commended the board and management of Presco for remaining on the path of profitability and sustained growth despite the economic downturn in the country.

Speaking on the company’s stellar performance, Pierre Vandebeeck, chairman, Presco Plc said “the company is still investing more and making bigger earnings. Our profits, disposable income, and new investment are growing up every time more and more and in the last six months our share prices have doubled.”

“In this year, we have planted close to 13,ooo hectare of palm oil trees and our goal is to have 1million hectares of palm oil plantation in the country. We have employed 6000 people in the environment we operate and we would employ more when we plant more,” Vandebeeck said.

He appreciated the government of Edo and Delta for providing conducive environment for the smooth operation of the organisation, urging them to grant some form of tax incentives for new plantations where the trees are yet to commence fruiting.

Godwin Obaseki, Governor of Edo state, who spoke at the pre AGM meeting of Presco congratulates Presco for its 2016 financial performance, assuring them of continuous support from the state.

“I believe that Presco is the future of our country and palm oil is our next crude oil. When you have a company like Prescott having a reserve on their balance sheet in excess of N20 billion, this shows that we are building a company that is strong in the agricultural sector,” Obaseki said.

“For us in Edo state we would continue to support you and encourage you to invest more because one of our cardinal goals is to create a minimum of 200,000 jobs. We see Presco as a significant contributor to that goal. We will collaborate with you; give you more land, provided Presco help us rebuild our forest.

“We also urge you to vary your business model slightly to encourage a lot of smallholder farmers so that we can spread the joy to many of our people,” the governor added.

 

Josephine Okojie