Japaul Oil posts impressive 1st quarter results
June 2nd, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
For a company that was listed in 2005, and paid a dividend to shareholders of N0.11 in 2006, things are indeed looking bright for Japaul Oil & Maritime services.
In its first quarter results ended March 31, 2007, the company had a turnover of N527 million as against N152 for the same period in 2006. This translates to an increase of 245 percent. Also, profit before tax increased by 119 percent, from N44.7 million in 2006 to N98.5 million in 2007. Consequently, after tax profit increased from N31.3 million in 2006 to N78.7 million in 2007, representing an increase of 151.3 percent.
The company is involved in the manufacture of shipping vessels, dredgers as well as other shipping and oil vessels. The company is also one of the very few in the maritime manufacturing industry and is the only quoted company in this sector. The recent carbotage law is expected to boost the activities of the company, as well as the market value of its shares. The entrance of more indigenous firms into the upstream oil sector is also a positive outcome for the company, as the vessels to be used by them are to be sourced locally. This is just one of the laws of the carbotage act.
The carbotage shipping fund, which is aimed at providing funds for the purchase of shipping vessels is also a plus for the company. The company opened trading at the beginning of the year at N1.05 and currently sells for N6.09, an increase of over 500 percent (share price is as at June 2, 2007).
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