One of Nigeria’s notable maritime companies, C&I Leasing Group, has reported its first nine-month loss in seven years in the period ended September 30, 2021, as income from its different businesses declined.
The company reported a loss of N169. 99 million in the review period, 149.54 percent decline when compared to the N343.15 million profit reported in the corresponding period of 2020. That is a drop of 143 percent when compared to the N392 million in 2014.
The performance reported by the group company was on the back of the decline in its three main income streams- lease rental income, tracking income and interest income.
Analysis of the financial result showed that C&I Leasing Group reported a combined 29.29 percent drop in both lease rental income and net tracking income in the review period.
Lease rental income was down 12.89 percent to N11.83 billion in September 2021 from N13.58 billion in the corresponding period of the previous year.
The income from the tracking business of the maritime company declined by 16.4 percent in the review period to N116.46 million in the first nine months of 2021 from N139.31million in the same period of last year.
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A breakdown of the financial report by C&I Leasing as published by the Nigerian Exchange Group (NXG) revealed that the company’s interest income was down by 80 percent to N3.17 million in the review period from the N16.57 million reported in the previous year.
The gross earnings reported by C&I Leasing in the period under review was down by 10.58 percent to N13.94 billion in the ninth month of 2021 from N15.59 billion in 2020.
This unfavourable nine-month performance reported by the company was despite the combined 37.14 percent decline in its operating expenses in the review period.
C&I Leasing reported a 19.94 percent decline in its personal expenses to N843.37 million in 2021 from N1.05 billion in the corresponding period of 2021. Other operating expenses by the company was down 17.2 percent to N828.38 million from N1.01 billion in the same period of the previous year.
Meanwhile, C&I Leasing recently announced that Peace Mass Transit has purchased 313,326,316 units of the Neoma Africa Fund L.L.C. (formerly Aureos Africa Fund, L.L.C.) unsecured variable coupon redeemable convertible loan stock in registered units of N4.75 each or $ equivalent in C&I Leasing Plc.
When fully converted, the loan stock will result in the issuance of 987,500,000 (Nine Hundred and Eighty-Seven Million and Five Hundred Thousand) Ordinary Shares of the Company.
The Company, in the issued statement available on the NSE, argued that: “the transaction will strengthen the capital base of The Company and improve the clarity of the capital structure.”
The Company also notes that: “the acquisition is highly beneficial to the company as the need for a possible redemption of the Notes, with the company’s cash resources, has been eliminated.”
