Naira floatation, cost cut-back boost Okomu Oil revenues by 47%

The technical devaluation of naira by Central Bank of Nigeria, which increased demand for local crude palm oil (CPO) and a cost cut-back strategy have seen Okomu Oil Palm Company Plc. record 47.42 percent growth in revenue in 2016.

Okomu Oil grew revenues to N14.3 billion in 2016 as against N9.7 billion recorded in 2015.

Gbenga Oyebode, chairman of board of directors, Okomu Oil, said that “local crude palm oil (CPO) prices, mainly as a result of changes in policy, combined with the effects of devaluation and inflation, resulted in average increase in the naira price of CPO by 55 per cent in 2016.’’

The company said that it is pursuing an aggressive expansion strategy to further extend its footprint in the local agricultural landscape.

Oyebode said that currently, the total oil palm area in its possession, including that of its second extension) was 14, 463 hectares, adding that Extension 2 had been transformed with the planting of the first 4,000 hectares of palm. Another 4,000 hectares would be planted in 2017, while additional 1,000 would be planted in 2018.

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The company,which has its operations majorly in Edo State expended N125 million on activities that are designed to improve the quality of life of its host communities. Bursaries, assistance and skill acquisition programmes were contributed to the community during the year.

Okomu Oil whose price saw a decline of 5.0 percent at the close of trading on the Nigeria Stock Exchange on June 23, has seen a share price appreciation of 98.58 percent YTD.  Its shares closed at N 61.56 per unit.

See also Commodities update- June 22, 2017