MARKET DEVELOPMENT
Okomu To Build Africa’s Largest Oil Palm Mill
Okomu To Build Africa’s Largest Oil Palm Mill
12/06/2013 (Ventures Africa) - Okomu Oil Palm Company Plc, a Nigerian indigenous agricultural firm, has revealed plans to double its production capacity, making it the largest oil mill in Africa.
Speaking at the company’s AGM recently, Okomu’s Chairman, Gbenga Oyebode said the company is planning to double its oil mill capacity from 30 tonnes per hour to 60 tonnes per hou, thereby making it the largest oil mill in Africa.
While explaining to shareholders the company’s main focus in 2013 is expansion through continuous planting and looking for other opportunities across the country, Oyebode said Okomu’s expansion plan will help boost yield from its oil palm and rubber plantations and grow the revenue of the company.
To achieve this, the Chairman said the company had planted a total of 600 hectares of rubber in 2013 and will plant another 700 hectares in 2014.
He added that the last 1,200 hectares of clearing is expected to begin in October 2013 and that it will continue in its replanting programme with another 402 hectares of oil palm in 2013 while a similar amount will be replanted in 2014.
Activities towards the realisation of the project have already begun and will be completed by 2014.
Meanwhile, the company posted a combined consolidated turnover of N10.1 billion ($64 million) in 2012, in spite of the lower-than-average commodity prices and trade volumes occasioned by the continuing worldwide financial crisis and uncertainty in the Eurozone and USA which continued to influence negatively in consumer spending during the year under review.
“Commodity prices, as a result of this crisis, dropped significantly, especially rubber prices, and this, amongst others, had an influence on the company’s profits in 2012. Notwithstanding these challenges, the company managed to perform admirably and this can be seen in the record highs achieved by our share price over this period,” Oyebode said.
The company also paid a dividend of N7.00 for every 50kobo share to its shareholders for the year ended 2012; 29 percent higher than that of N5.50 it paid to shareholders in 2011. It also gave a bonus of one new share for every existing ordinary share of 50k held by each shareholder of the company.
Security challenges were encountered by the company over the financial year in form of disruptions from militants and kidnapping of its personnel, but Oyebode said the company was able to survive it with the pro-active engagement of the management with local community.
Speaking at the company’s AGM recently, Okomu’s Chairman, Gbenga Oyebode said the company is planning to double its oil mill capacity from 30 tonnes per hour to 60 tonnes per hou, thereby making it the largest oil mill in Africa.
While explaining to shareholders the company’s main focus in 2013 is expansion through continuous planting and looking for other opportunities across the country, Oyebode said Okomu’s expansion plan will help boost yield from its oil palm and rubber plantations and grow the revenue of the company.
To achieve this, the Chairman said the company had planted a total of 600 hectares of rubber in 2013 and will plant another 700 hectares in 2014.
He added that the last 1,200 hectares of clearing is expected to begin in October 2013 and that it will continue in its replanting programme with another 402 hectares of oil palm in 2013 while a similar amount will be replanted in 2014.
Activities towards the realisation of the project have already begun and will be completed by 2014.
Meanwhile, the company posted a combined consolidated turnover of N10.1 billion ($64 million) in 2012, in spite of the lower-than-average commodity prices and trade volumes occasioned by the continuing worldwide financial crisis and uncertainty in the Eurozone and USA which continued to influence negatively in consumer spending during the year under review.
“Commodity prices, as a result of this crisis, dropped significantly, especially rubber prices, and this, amongst others, had an influence on the company’s profits in 2012. Notwithstanding these challenges, the company managed to perform admirably and this can be seen in the record highs achieved by our share price over this period,” Oyebode said.
The company also paid a dividend of N7.00 for every 50kobo share to its shareholders for the year ended 2012; 29 percent higher than that of N5.50 it paid to shareholders in 2011. It also gave a bonus of one new share for every existing ordinary share of 50k held by each shareholder of the company.
Security challenges were encountered by the company over the financial year in form of disruptions from militants and kidnapping of its personnel, but Oyebode said the company was able to survive it with the pro-active engagement of the management with local community.