TUE, APRIL 28 2020-theG&BJournal- Okomu Oil Palm Company Plc plans to pay a dividend of N2 per 50k share, representing a total dividend of nearly N4 billion for the year ended 2019 despite operating headwind.
The country’s biggest oil palm company made the announcement as it reported a net profit loss of N18.9 billion for the year ended 31st December 2019. Analysts had expected even bigger loss given the depressed local market and a 14% drop in crude palm oil (CPO) prices.
The combined effect of the drop in CPO prices, the depressed and low commodity prices prevalent in the rubber market and on-going cost cutting measures by the company’s management led to a 35% overall drop ( From N8.2bn down to N5.3billion) in comprehensive income for the year, compared to 2018.
Direct cost of sales were 11% higher than 2018 at N6.1 billion, compared to N5.5 billion in 2018.
The company reports cost of crude palm oil production from the mill were 2% higher than 2018 production cost, explained by the increased preventive maintenance costs, while oil extraction rates averaged approximately 22.19 %, 3 % higher than 2018 costs. Total book costs for all oil palm products were 2 % higher YoY.
The company processed a total of 7.335ha of rubber at the end of 2019. Dry rubber agricultural plantation costs increased by 5% YoY and the rubber book cost for 2019 was 11% higher than the 2018 book cost.
The company’s chairman Mr G Oyebode is hoping 2020 will be a better year and a ‘’year shareholders can expect to start seeing the benefits of our extension 2 plantation coming through as the 9,000 ha nears maturity.’’
The first of the two 30t/hour oil mills in Extension 2 are already at roofing levels and the boilers are ready for commissioning.
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