10 things we learnt from 11 plc’s latest financial report

11 plc, formerly Mobil Nigeria in its latest financial report recorded the lowest profit in 5 years while revenue plunged to 3-year low in the first nine months of 2020.

Here are some major highlights from the report

Decline in profit

11 plc recorded a 35 percent decline in profit after tax to N4.12 billion in the first nine months of 2020 from N6.3 billion a year earlier.

Similarly, profit after tax fell 35 percent to N6.1 billion in the nine months period compared to N9.4 billion in the same period last year.

Drop in oil sales

The oil firm’s revenue slumped 19 percent from N144 billion in 2019 to N114 billion, the lowest for the nine-month period in almost three years.

Although revenue from lubricants and liquified petroleum gas (LPG) rose 0.37 percent and 39 percent respectively compared to last year, the drop in the sale of fuel dragged down total revenue.

Proceeds from the sale of fuels fell 23 percent to N86.7 billion from N114 billion in the reference periods.

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Reduced sales cost

Cost of sales was down 17.9 percent to N106.7 billion in the first nine months compared to N130 billion in the same period last year.

Higher borrowing cost

Finance cost rose 59 percent to N414.8 million in 9M’20 compared to 261 million in the first nine months of the previous year while finance income increased by 55 percent to 199 million from N128 million a year ago.

Income tax expense

Income tax expense fell 33 percent to N3.0 billion in 9M’20 from N2.0 billion in 2019.

Reduced expenses

The firm’s selling and distribution expenses declined 5 percent to N4.59 billion while administrative expenses rose 6 percent to N3.3 billion from N3.1 billion the previous year.

Gross profit

11 plc’s gross profit plunged 30 percent to N7.9 billion in 9M’20 compared to N11.4 billion a year earlier

Earnings per share

Earnings per share fell 35 percent to N1143 from N1759 in the same period last year.

Cash generated from operating activities

Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities. Cash generated from operating activities slumped 50.9 percent to N7.8 billion in 9M’20 compared to N15.9 billion in the same period last year.

More losses from Cash used investing activities

11 plc made a loss of N11.9 billion on investing activities, some 300 percent more than the first nine months of 2019 when it posted a loss of N2.9 billion.