The management of Okomu Oil Palm Company Plc on Tuesday announced a dividend payment of N2.8 billion after tax to shareholders.
The company is located at Udo Community in Ovia South West Local Government Area of Edo.
The Chairman of Okomu Oil Palm, Gbenga Oyebode, made the announcement at the company’s 2017 annual report and accounts, on Tuesday in Benin.
He said the feat was made possible due to the prudent management of the company.
“As a result of the excellent results delivered and to ensure that our shareholders remain participants in the success of the company, the Board of Directors recommends for approval, a dividend payment of N3.00k per ordinary share, or a total dividend of nearly N2.8 billion.
“During the year under review, the results of the company recorded combined turnover totaling N20.2 billion which amounts to an increase of 40 per cent on 2016 turnover.
“Direct costs of sales were 36 per cent higher than 2016 at N4.9 billion, generally in line with inflation and the Naira devaluation,’’ he said.
According to him, in 2017, the company also paid more than N2 billion in taxes to federal agencies up from N948 million paid in 2016.
“This translated into a total comprehensive income of N8.9 billion in 2017, this being 78 per cent better than the N4.9 billion total comprehensive income recorded in 2016,’’ he said.
Mr Oyebode explained that although there were some improvements from the previous year, “2017 still presented numerous challenges to the business environment with a contraction monetary policy, high levels of inflation and unemployment.
“However, government’s action to reign in excessive budgets and improve foreign liquidity as well as an increase in oil prices helped bring the economy out of recession this year.
“We also saw improved rubber and crude palm oil (CPO) prices this year, with increases of 24 per cent and 44 per cent respectively.
“This combined with fiscal discipline displayed by the management, saw the company delivering excellent record,’’ he said.
“The consolidated profits on continuing operations after tax saw an increase of 78 per cent on the 2016 results.
“Turnover also increased by 40 per cent from 2016, which saw the company take up position as one of the top 10 companies with the highest turnover on the Nigerian Stock Exchange in 2017.’’
On its operations in the year under review, Mr Oyebode noted that as at the end of 2017, the total oil palm area was 17,244 ha, of which 7,371 ha with new plantings were yet to mature.
“Plantation cost for the year was 28 per cent higher than for 2016,’’ he added.
“Production of crude oil palm from the oil mill was two per cent higher than 2016’s production, with oil extraction rates averaging approximately 22 per cent.
“However, the oil mill costs for 2017 were 37 per cent higher than the previous year, predominantly driven by the increased costs of imported spare parts as a result of the devaluation of the Naira.
“Despite increased costs, the company recorded increased palm oil products turnover, up to 40 per cent on 2016 and increased net profit from palm product operations of 55 per cent on the previous year,’’ he said.