With a total number of 953,910,000 units outstanding shares, the management of Okomu Oil palm plc has recommended N3.00 as dividend to its shareholders subject to appropriate withholding tax and approval will be paid to the shareholders whose names appear on the members register at the close of business on 13th May, 2019 despite a fall in the company Profit After Tax (PAT) from N9.314 billion garnered in 2017 to N8.501 billion in the current period under review , which represents 8.72% decline.
The Financial Statements of a leading Nigeria’s Agro-Business that develops oil palm plantation, mills palm oil, processes palm kernel and also develops rubber tree plantation was filed in the Market on March 29th, 2019 which revealed a marginal drop of 0.02% in the company’s topline Line figures to settle at N20.257 billion below N20.261 billion recorded same period previous year of 2017.
The company’s Earnings per share consequently fell from N9.76 to N8.91 in the Current period, representing 8.72% year on year decline.
At a stock price of N80.00, the company’s price to earnings ratio stood 8.98x with about 11% earnings yield as at when computed.
The Okomu Oil Palm Company was established in 1976 as a Federal Government pilot project aimed at rehabilitating palm oil production in Nigeria. At inception, the pilot project covered a surveyed area of 15 580 hectares out of which 12 500 hectares could be planted with oil palm. It was incorporated on December 3, 1979 as a limited liability company.
As part of efforts to shore up its revenue base, the company acquired and installed a 1.5T /h Fresh Fruit Bunches (FFB) mill in 1985 to begin to process its FFB. Prior to the installation of the mill, the company derived its revenue from the sale of FFB.
By December 31, 1989, 5 055 hectares of the estate had been planted. The company also began infrastructural developments on the estate at that period. The facilities included office blocks, workshops/stores, staff quarters, a petrol station, a powerhouse and a primary school for children of the company’s staff members.