MARKET DEVELOPMENT
Shareholders Approve Okomu’s N2.5bn Expansion Plan
Shareholders Approve Okomu’s N2.5bn Expansion Plan
12/06/2014 (The Punch) - Shareholders of Okomu Oil Palm Company Plc on Wednesday approved the proposal of the management for the expansion of its current oil mill from 30 tonnes per hour to 60 tonnes per hour.
The move, which is aimed at ensuring better returns for the company as well as its shareholders would make Okomu to have the largest mill in Africa.
Speaking at the 34th Annual General Meeting in Abuja, the Chairman, Okomu Plc, Mr. Gbenga Oyebode said the mill would emerge as one with the newest technology.
The expansion of the company, according to him would also enable the company purchase an 11,000 hectare plantation in Edo State.
This, he said, would assist the company to double its current Crude Palm Oil volume in the next five years.
He described the operating environment as very challenging noting that while the prospects may not currently be optimistic, the board would still implement programmes that would unlock greater returns for shareholders.
On the company’s financial performance, he put the total revenue for all palm products at N5.62bn. This represents a decrease of 23 per cent when compared to the 2012 value of N7.29bn.
He said the company recorded a 41 per cent decline on profit from N2.26bn in 2012 to N1.32bn for 2013.
The shareholders also approved the payment of dividend of N953.91m representing N1 per share as against the N3.33bn or N7 per share paid in 2012.
Oyebode said, “The operating environment in 2013, especially for agri-processing companies like ours, was not an easy one.
“All commodity prices, including those of rubber and oil palm, continued to decline significantly in 2013, just as was the case in 2012.
“More specifically, a drop of 12 per cent and 17 per cent, respectively in crude palm oil and rubber prices in 2013 and those from the prior year occurred.
“That is why we have begun the expansion of the current oil mill. This will effectively make it one of the largest mills in Africa and certainly the one with the newest technology.”
Some of the shareholders who spoke at the AGM commended the management for the expansion plan in view of the current economic realities.
The move, which is aimed at ensuring better returns for the company as well as its shareholders would make Okomu to have the largest mill in Africa.
Speaking at the 34th Annual General Meeting in Abuja, the Chairman, Okomu Plc, Mr. Gbenga Oyebode said the mill would emerge as one with the newest technology.
The expansion of the company, according to him would also enable the company purchase an 11,000 hectare plantation in Edo State.
This, he said, would assist the company to double its current Crude Palm Oil volume in the next five years.
He described the operating environment as very challenging noting that while the prospects may not currently be optimistic, the board would still implement programmes that would unlock greater returns for shareholders.
On the company’s financial performance, he put the total revenue for all palm products at N5.62bn. This represents a decrease of 23 per cent when compared to the 2012 value of N7.29bn.
He said the company recorded a 41 per cent decline on profit from N2.26bn in 2012 to N1.32bn for 2013.
The shareholders also approved the payment of dividend of N953.91m representing N1 per share as against the N3.33bn or N7 per share paid in 2012.
Oyebode said, “The operating environment in 2013, especially for agri-processing companies like ours, was not an easy one.
“All commodity prices, including those of rubber and oil palm, continued to decline significantly in 2013, just as was the case in 2012.
“More specifically, a drop of 12 per cent and 17 per cent, respectively in crude palm oil and rubber prices in 2013 and those from the prior year occurred.
“That is why we have begun the expansion of the current oil mill. This will effectively make it one of the largest mills in Africa and certainly the one with the newest technology.”
Some of the shareholders who spoke at the AGM commended the management for the expansion plan in view of the current economic realities.