Notore Chemicals Industries Plc, one of Nigeria’s major fertiliser and agro-allied companies, reported its highest half-year profit in 5 years of N2.6 billion, an improvement from a loss of N9.27 billion in the corresponding period last year, according to findings by BusinessDay.
Data sourced from the firm’s latest financial report showed a 400.8 percent surge in revenue was responsible for the profit reported by the fertilizer company in the first half (H1) of 2022. Its revenue grew to N26 billion in the first six months of 2022 from N5 billion in the corresponding period of 2021.
The growth in revenue can be attributed to a whopping 636.6 percent spike in urea which generated revenue of N24.97 billion in the first half of 2022.
However, on a quarterly basis, revenue was down by 39.56 percent to N9.9 billion in the second quarter (Q2) of 2022 from N16.38 billion in the first quarter (Q1) of 2022.
Analysis by geographical location shows that revenue from outside Nigeria was more than the revenue generated within Nigeria. Revenue generated outside Nigeria amounted to N14.7 billion while revenue generated within Nigeria amounted to N11.57 billion in the first half of 2022.
In a statement, Group Managing Director and Chief Executive Officer (CEO) of Notore Chemical Industries Plc, Ohis Ohiwerei attributed the modest growth in revenue to improvements in plant reliability and increased production output, a positive outcome of the Turn Around Maintenance (TAM) programme implemented in most part of the year 2021.
Its cost of sales, which claimed 69 percent of the total revenue, amounted to N18 billion in the first half of 2022, growing by 87.8 percent from N9.68 billion in the corresponding period of 2021.
The agro-allied company’s administrative expenses also experienced a 14 percent uptick to N3.44 billion in the first half of 2022 from N3.01 in the first half of 2021.
Read also: Thirst for Nigeria’s urea surges as Brazil, US, India increase demand
Its net finance costs, however, experienced a decline of 2.49 percent to N8.24 billion in the first half of 2022 from N8.45 billion in the first half of 2021.
Notore’s total assets improved by 5.21 percent to N241 billion in the first half of 2022 from N229 billion in the first half of 2021.
In the same vein, its total shareholder’s equity was up 3.34 percent to N55.63 billion in the first half of 2022 from N53.83 billion in the first half of 2021.
Its negative cash and cash equivalents improved during the first half of 2022 to N-15 million from N-746 million in the first half of 2021.
Cash from operating activities was up 69.8 percent to N10.53 billion in the first half of 2022 from N6.2 billion reported in the first half of 2021.
The company reported negative net cash used in investing activities of N1.84 billion largely due to the purchase of property, plant, and equipment (PPE), and additions it made to its intangible assets during the period which amounted to N1.8 billion and N27 million respectively.
It also reported negative net cash used in financing activities amounting to N6.44 billion owing to repayments of borrowing made amounting to N9.5 billion, principal elements of lease payments made amounting to N19 million, interest paid amounting to N8 million, and interest paid on lease which amounted to N1.56 million in the first half of 2022.
However, for financing activities, the company generated money amounting to N11 billion in the first half of 2022 from refinancing of loan repayment maturities.
The fertilizer company reported earnings per share of N1.62 per share in H1 2022.
Notore is a vertically integrated agro-allied and chemicals business situated in Onne (near port Harcourt), Rivers State, and is engaged primarily in the production and sale of fertilizer products. The Group’s current business comprises fertilizer production, supply, and trading of fertilizer.
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