11 Plc to delist from NSE

The board of directors of 11 Plc says following its meeting held on February 27, it has approved the proposal for the oil firm to voluntarily delist from the Nigerian Stock Exchange.

The company, in a statement obtained from the NSE, noted that its decision to exit the Nigerian bourse would be subject to shareholders’ approval at the next annual general meeting slated for June 3, according to the notice filed at the Exchange.

In line with the NSE rules, shareholders of the company will have a 90-day window on voluntary delisting to decide on the exit plan to offer shareholders.

In addition to this, the oil company also sought to restructure the company’s business by transferring its real estate unit to 11 Hospitality Limited, a new subsidiary of the company, for optimum return on investment, whilst 11 Plc would concentrate more on the downstream sector of its business.

The 11 Plc’s Q2 2019 sales of N46.7bn were up 14 per cent year on year, driven by improved sales across all key categories.

The 11 Plc also posted liquefied petroleum gas sales of N316m. In the first half of the year, the firm reported the LPG sales of N608m.

However, Q2 PBT and PAT both declined by -21 per cent y/y to N3.2bn and N2.1bn respectively, primarily driven by a gross margin contraction of -228bps y/y to 8.3 per cent, completely offsetting a -4 per cent y/y decline in operating expenses. Additionally, other income fell by -12 per cent y/y to N2bn.

Analysts at FBNQuest said, “Sequentially, the PBT and PAT both advanced by five per cent y/y. Compared with our forecasts, sales and PBT beat estimates by 12 per cent and seven per cent respectively.

“The 11 Plc’s Q2 2019 earnings of N2.1bn beat our estimates by around six per cent, primarily on the back of positive surprises on the top line and opex line.

“As such, we have made negligible changes to our earnings forecast over the 2019-21E period. As anticipated, sales, up 14 per cent y/y to N46.7bn, improved across all key business segments.”

The company closed the Q3 with 19.4 per cent decline in profit before tax to N6.343bn from N7.871bn in 2018.

Its Profit before tax also dropped by 19.3 per cent from N11.646 in 2018 to N9.3bn in 2019.

Revenue, however, grew by 13.2 per cent to N141.511bn from N125.042bn in 2018.

 

Source: The Punch

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