09 May

Daily Watch – Domestic flights plunge 67% in Q1, Bank of Agric injects ₦9b in SE states

  • The National Bureau of Statistics said Nigeria’s power stations generated 3,687 MW of electricity in Q1 2017. In “Daily Energy Generated and Sent Out for 1st Quarter 2017″ report posted on its website in Abuja on Monday, it stated that Afam VI Power Plant contributed about 12.64 percent share of the average energy generated in the quarter, representing the highest generation among 23 power plants within the period under review. “Daily energy generation attained a peak of 5,846MW on the 24th January and daily energy sent out on the same date was 5,747MW. Similarly, the highest daily energy generated per hour attained a peak of 140,316mwh on the 24th January 2017 and daily energy sent out per hour on the same date was 137,920mwh. This represents the highest level of energy generated and sent out in the month of January 2017 and in the first quarter,” the report added. The report showed that the lowest daily energy generation was 1,660MW in January and in the quarter.
  • The Bank of Agriculture says it had injected a total of ₦9.08 billion in states in the South-East zone of the country, in its quest to achieve economic diversification. A breakdown of the numbers showed that while Anambra got the lion share of ₦3.304 billion, Ebonyi got N577.888 million. Abia on its part got ₦1.451 billion, while Enugu and Imo got ₦1.703 billion and ₦2.048 billion respectively. The bank had also during the last meeting of the South East governors’ forum made a presentation on the activities of the bank in the region and efforts to explore areas the zone has a comparative advantage. The bank’s managing director, Kabiru Mohammed explained in Enugu that the bank had the mandate to provide agricultural credit and non-agricultural micro-credit with a view to curbing poverty. He, however, said that the amount so far disbursed in the zone fell below the expected target for the region, considering the abundant opportunities in the area.
  • The Nigerian Civil Aviation Authority on Monday said domestic flight operations declined by 67 percent in the first quarter of 2017, compared to the same period last year. The NCAA’s Consumer Protection Department disclosed that 10,366 flights operated in the first quarter of 2017 compared to the 15,434 flights operated in 2016 by eight domestic airlines – Aero Contractors, Arik Air, Air Peace, Azman Air, Dana Air, First Nation, Med-View, and Overland. It added that out of the 10,366 flights operated in the first quarter, there was 6,789 delay and 318 cancellations.
  • Stanbic IBTC Holdings was the best performing stock in percentage terms on the NSE in April. Data obtained from the exchange for the period showed that the stock increased by 48.98 percent to close at ₦26.25 per share in contrast with the month’s opening price of ₦17.62. Analysts have attributed the stock’s growth to impressive 2016 full year result for the financial year ended Dec. 31, declared by the bank during the period. Investors embraced the stock in spite of low dividend payout, adding that improved 2017 first quarter earnings contributed to the rally. Air Service came second with a growth of 40.32 percent, having closed at ₦4.35 against ₦3.10 achieved in March, C &I Leasing improved by 36 percent to close at 66k per share against the opening price of 50k. Lafarge Africa rose by 31.07 percent to close at ₦50.92 against ₦38.85 posted in the preceding month, while National Allied Industry garnered 23.04 percent to close at ₦8.49 in contrast with ₦6.90 in March. Cadbury was up by 22.37 percent to close at ₦9.30 against ₦7.60 and Learn Africa increased by 20.59 percent to close at 82k per share compared with 68k in the previous month. Conversely, FCMB Group under the financial services sector, was the worst performing stock during the period, dropping by 23.20 percent to close at 96k per share against ₦1.25 achieved in March.
  • Wapic Insurance said it recorded growth across key performance indicators for the period ended March 31, 2017. The Group’s first quarter result showed that profit before tax grew by 135 percent, from ₦163 million recorded in the first quarter of 2016 to ₦384 million in the period under review. Similarly, the Group’s Gross Written Premium increased by 25 percent over the previous year’s figure of ₦3.022 billion, to ₦3.771 billion, which it said signalled a departure from the erstwhile converse relationship between profitability and gross written premium in the company’s operations. In the recent past, Wapic Insurance has had to pay out significant sums in the bid to set the institution free from legacy claims. According to a statement from the company, the insurer also recorded a 23 percent growth in Net Underwriting Income, from ₦1.159 million in 2016 to ₦1.428 million recorded in 2017. In the same vein, Underwriting Profit rose by 19 percent to ₦426 million, from the ₦358 million posted for the corresponding period in 2016 to affirm the effectiveness of the Group’s operations. “As Wapic Insurance continues its quest for leadership, operational efficiency; product innovation; channel utilisation and capacity building will remain the focal points of our agenda,” the Managing Director, Wapic Insurance, Yinka Adekoya said.
  • Fidelity Bank shareholders have been rewarded with ₦4.056 billion representing 14 kobo per ordinary share as a dividend for the financial year ended 31 December 2016 upon approval at the bank’s 29th annual general meeting held in Lagos yesterday. The dividend was unanimously approved by the shareholders at the meeting. The bank’s chairman, Ernest Ebi attributed the 2016 financial performance to the slowdown in business activities due to lower government revenues arising from depressed oil prices, lower interest rate regime, rising inflation rate, lower consumer disposable income, tougher operating environment and the impact of the current devaluation on asset quality.