EQUITY REPORT: OKOMU OILPALM PLC
Cost heads were mixed due to varied dynamics within the economic space. Cost of sales for instance went up by 98.1% and reflected the rise in the volume of Oil Palm and Rubber sold. It spiked up to N1.27 billion ($3.5m) from N649.61 million (N1.9m) in 6M 2016. OPEX was 13.9% higher at N3.26 billion ($8.93m) against 6M 2016 and equally higher than 11.1% posted in 3M 2017. Finance cost went up by 122.4% at N366.23 million ($1.0m) and higher than 70.6% recorded in 3M 2017.
Okomu revenue growth was boosted by Naira devaluation which romped up the prices of Palm Oil and Rubber in the market place. For instance, five (5) liters of Palm Oil moved from N1,300 in H1 ’16 to N2,500 in H1 ’17, representing a 92.3% appreciation. This obviously impacted on the revenue reported in the period. Palm Oil sales returns moved up to N1.15 billion ($3.16m), representing a growth of 111.9% over N582.82 million reported in 6M ’16.