There indications that the financial performance of Oceanic Bank International plc has surpassed its management projection for the year.
Sources disclosed that the bank’s profitability level for the 2007 financial year would be best in the industry. It would be recalled that the bank closed 2006 financial year as the third most profitable financial institution in the country.
Meanwhile, the bank’s chief executive, Cecilia Ibru, has assured its shareholders that the bank will adequately compensate them for their perseverance and trust with good returns on their investments. The bank is currently the most capitalised in the country, with a shareholders funds of N213 billion. The bank had projected a dividend payout of N33.8 billion to the investors for the next three years. The dividend payout excludes other returns that are accruable to the bank’s investors, like the expected capital appreciation and bonus issue.
Capital market analysts have however projected that the share price of the bank tohit N45 before the end of the financial year. The bank, it would be recalled gave the investors a surprise bonus issue of one for four last financial year as well as a dividend bonus of 42 kobo a share. The bank’s dividend policy has been one of the most attractive in the industry in the past five years. The quantum of its annual dividend payout has grown by an impressive 1477 percent since 2001, which implies that investors in the bank have the prospect of seeing their investment yielding three times the value of their initial investment annually.
In a chat with financial correspondents recently, the bank chief said: "We are very determined to make our shareholders happy. We will leave by our promise of delivering excellent service to our customers, make good money and give bountiful in terms of returns." Aside the superb earnings and profitability performance of the bank, the value of its stock on the floor of the Nigerian Stock Exchange (NSE) has also continued to do very well and now sells over N30 per share on the floor, huge capital gains for the investors
An Inter-temporal analysis of Oceanic Bank’s performance shows the consistency, which guaranteed the bank’s present position as the Best bank in Nigeria. Between 2002 and 2006, the bank’s asset base has grown by a whopping 643 per cent, while its deposit base grew by 594 per cent. Its loan portfolio however recorded a more impressive growth rate of 833 per cent within the review period, testifying to the fact that Oceanic Bank is a "Real Sector Friendly Bank". From these efforts, the bank has been able to consistently improve on its earnings generation capacity, rising by 479 per cent between 2002 and 2006.
Ibru attributed the bank’s ability to consistently sustain its remarkable performance on all financial indices to the bank’s solid management, continuous quest for innovations and human capital development all geared towards value-added customer service delivery. All these, she said was achievable through rigorous training and refresher courses organized for the staff and more importantly to the strict adherence of all the Management and staff to the bank’s core values, tagged: TEAMS, an acronym of Transparency, Equal Opportunity, Accountability, Merit and Service Excellence.
Monday, December 24, 2007
Thursday, December 13, 2007
TERM OF THE DAY:Accounting Noise
This refers to the effect of complex and extensive accounting rules that regulate financial statement reporting and are thought to distort a company's true operating performance.
Accounting noise can be seen as either a consequence of necessary rules regarding Generally Accepted Accounting Principles (GAAP) or a result of management's attempts to massage the numbers to present a rosier financial picture of the firm.
For example, a company that has recently undergone a significant merger may look very unprofitable on the income statement; because the merger may cause serious one-time charges for the company, it may be useful for investors to cut through the accounting noise to get a more accurate picture of the company's prospects.
Conversely, an underperforming company could engage in earnings manipulation, creating accounting noise to hide its poor performance.
Accounting noise can be seen as either a consequence of necessary rules regarding Generally Accepted Accounting Principles (GAAP) or a result of management's attempts to massage the numbers to present a rosier financial picture of the firm.
For example, a company that has recently undergone a significant merger may look very unprofitable on the income statement; because the merger may cause serious one-time charges for the company, it may be useful for investors to cut through the accounting noise to get a more accurate picture of the company's prospects.
Conversely, an underperforming company could engage in earnings manipulation, creating accounting noise to hide its poor performance.
AP Shares: How Otedola acquired 55.3%
More facts emerged Wednesday on how Mr. Femi Otedola acquired a whopping 55.3% share of African Petroleum Plc, just as the House of Representatives began conducting public hearing on the controversial sale of 27.5% stake of African Petroleum shares to Zenon Petroleum and Gas Plc owned by Mr. Femi Otedola.
A rare peep into the majority share structure of the company reveals that Otedola, in his own personal capacity now holds a comfortable 29.3% while Zenon Petroleum and Gas comes second with 26%. Afribank Plc has 16% making it the third largest stakeholder. NNPC still retains 1.5% and while the balance shares are spread amongst the 161, 200 shareholders. So with or without the 27.5% NNPC shares that Zenon acquired, Mr. Femi Otedola remains the undisputed majority shareholder of the company.
The 29.3% were acquired on the secondary market on the floor of the Nigerian Stock Exchange, and contrary to the widespread belief that NNPC’s controversial shares sold to Zenon was 28.7%.
A highly competent source has revealed that the actual Shares held by NNPC preceding the sale was 27.5% out of which 26% was sold to Zenon for N17 billion. A merger of Otedola’s personal holding of 29.3% and Zenon’s 26% holding brings the total shares held by Otedola to a whooping 55.3%.
The public hearing is coming on the heels of a petition the House received from Sadiq Petroleum Ltd on the reacquisition of AP Plc shares through capitalization of undisclosed debt. The House committee decided to hold the 2-day public hearing on Tuesday and Wednesday to resolve the crisis.
Interestingly, since Otedola’s entry into AP, the share price of the company has appreciated by 176% consistently toping gainers chart on the floor of the exchange over a 3 week run. According to many analysts, his entry rekindles confidence in African Petroleum Plc. The company under Otedola is said to be about to embark on an ambitious redevelopment of AP Filling stations in some of the major cities, beginning from Lagos.
NNPC had acquired the equity interest through its staff pension fund in 2005 through a debt-swap of over N10 billion debts AP owed the corporation. This acquisition was subsequently gazetted. Other major shareholders include Asset Management Company Limited (ASSEMAL), a related company to Afribank Plc.
A rare peep into the majority share structure of the company reveals that Otedola, in his own personal capacity now holds a comfortable 29.3% while Zenon Petroleum and Gas comes second with 26%. Afribank Plc has 16% making it the third largest stakeholder. NNPC still retains 1.5% and while the balance shares are spread amongst the 161, 200 shareholders. So with or without the 27.5% NNPC shares that Zenon acquired, Mr. Femi Otedola remains the undisputed majority shareholder of the company.
The 29.3% were acquired on the secondary market on the floor of the Nigerian Stock Exchange, and contrary to the widespread belief that NNPC’s controversial shares sold to Zenon was 28.7%.
A highly competent source has revealed that the actual Shares held by NNPC preceding the sale was 27.5% out of which 26% was sold to Zenon for N17 billion. A merger of Otedola’s personal holding of 29.3% and Zenon’s 26% holding brings the total shares held by Otedola to a whooping 55.3%.
The public hearing is coming on the heels of a petition the House received from Sadiq Petroleum Ltd on the reacquisition of AP Plc shares through capitalization of undisclosed debt. The House committee decided to hold the 2-day public hearing on Tuesday and Wednesday to resolve the crisis.
Interestingly, since Otedola’s entry into AP, the share price of the company has appreciated by 176% consistently toping gainers chart on the floor of the exchange over a 3 week run. According to many analysts, his entry rekindles confidence in African Petroleum Plc. The company under Otedola is said to be about to embark on an ambitious redevelopment of AP Filling stations in some of the major cities, beginning from Lagos.
NNPC had acquired the equity interest through its staff pension fund in 2005 through a debt-swap of over N10 billion debts AP owed the corporation. This acquisition was subsequently gazetted. Other major shareholders include Asset Management Company Limited (ASSEMAL), a related company to Afribank Plc.
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