Japaul triples net earnings

Japaul Oil & Maritime Services Plc tripled most key performance indicators in the third quarter, raising expectations that the company might increase cash payouts, a trend that it has maintained since listing on the Nigerian Stock Exchange (NSE).Interim report and accounts of the oil and maritime services company for the third quarter ended September 30, 2007 showed that turnover rose by 188 per cent while net earnings tripled by 222 per cent.The report showed a turnover of N1.79 billion by third quarter of 2007 as against N621.21 million in the comparable period of 2006.

The company tripled net earnings from N98.77 million in third quarter of 2006 to N315.57 million in 2007.Analysts said the current report shows strong dividend outlook for Japaul, which had increased cash payouts by 10 per cent for the 2006 business year in spite of a 25 per cent increase in outstanding shares due to a bonus issue of one for four declared for the 2005 business year.Japaul distributed 11 kobo dividend per share for the 2006 business year as against 10 kobo per share in 2005. Shareholders' funds of the company rose by 66 per cent from N693.21 million in 2005 to N1.15 billion in 2006 while total assets doubled to N2.17 billion in 2006 as against N1.07 billion in 2005.

Audited report and accounts of the company for the year ended December 31, 2006 showed significant growths across performance indicators with turnover rising by 163 per cent from N533.15 million in 2005 to N1.40 billion in 2006. Gross profit rose from N238 million in 2005 to N437 million, an increase of 84 per cent while pre and post tax profits rose by 94 per cent and 83 per cent to N241 million and N190 million in 2006 respectively compared with N124 million and N104 million in pre and post tax profits in 2005.Japaul recently closed application lists for a combined public offer and rights issue. Japaul offered 1.01 billion ordinary shares of 50 kobo each at N3.95 per share through public offer for subscription and 291.55 million ordinary shares of 50 kobo each at N3.50 per share to existing shareholders. The two offers, which opened Monday September 24, 2007, closed on October 31, 2007.Japaul is the first and only maritime company quoted on the Nigerian Stock Exchange (NSE). The hybrid supplementary issue was its second public offering of shares following its initial public offering (IPO). Mr Paul Jegede, managing director, Japaul Oil & Maritime Services Plc, has said the company was committed to continuously enhance returns to shareholders adding that the company would surpass its profit targets.

He said net proceeds of the new issues would be invested in new expansion programme aimed at acquiring new equipments and facilities to strengthen its position as a major Nigerian operator in the lucrative oil and gas sector.He outlined that the company would use the net proceeds of the offers to acquire more vessels, build facilities for maintenance of vessels and enhance working capital for its business expansion.He noted that the existing operating environment in the oil services industry favours development of Nigerian operators citing various policies such as Cabotage law and local content policy aimed at improving Nigerian participation in the industry.He estimated yearly earnings in the oil services industry at a minimum of $5 billion lamenting that Nigerian companies account for mere five per cent of the industry due to low capitalisation.He said the company has secured many contracts that should provide enough earnings cover for the increase in number of shares and ensure sustained growth in dividends.