Eurocomm Securities Limited

FLOUR MILLS OF NIGERIA PLC – PAYMENT OF 2018 FINAL DIVIDEND

Friday 20 July, 2018

Dangote to make history with Nigeria oil refinery, fertilizer IPO

Monday 9 July, 2018

The largest indigenous industrial conglomerate in Sub-Saharan Africa Dangote group has announced plans to have an Initial Public Offering (IPO) listing of both its fertilizer and refinery plant. The IPO is the first of its kind in Nigeria and if successful could set the stage for other companies to test the market.

The listing of the $2.5 billion fertilizer plant and $10 billion refinery capacity will be done differently as it will cut reliance on international markets for Africa’s largest oil producer, who imports more than 90 per cent of its fuel needs. The IPO is scheduled to commence after next year’s general election (early 2020).

Valuation of Refinery

BusinessDay estimates the potential market value of Dangote Refinery to be around $34.5 billion. This value was estimated using the average market valuation of some of the largest refiners in the world which are Exxon Mobil, British Petroleum, Shell, Petrochina, SINOPEC and Indian based Reliance based Industries Limited.

We estimated the market value of the refinery business as a standalone from the main entity by multiplying the percentage contribution of the refinery income to total revenue of the oil and gas companies with their total market capitalization. The average percentage contribution was 80.98 percent of total revenue.

We then estimated the average market value per barrel refined using the production capacity of the refinery and the estimated market capitalization of the refinery business. The average value per barrel refined was estimated to be $53,070 per barrel.

To obtain the market capitalization of Dangote Refinery we multiplied the production capacity of the refinery which is 650,000 barrels per day with the average market price per barrel refined which gave us an estimated market value of $34.5 billion.

Of the total firms used in the analysis, Dangote refinery had the smallest market value while the largest was Exxon Mobils refining operations which contributed 77.84 percent of revenues in 2017 with a daily refining capacity of up to 6.3 million barrels per day across multiple refineries around the world.

With 650,000 bpd Dangote refinery is one of the largest refineries in the world, behind the likes of Jamnagar refinery owned by Reliance Industries Limited which produces 1.2 million bpd.

Estimated Revenue

Nigeria a country of almost about 200 million people currently consumes roughly 35 million litres of petrol daily; Dangote’s Refinery facility is expected to produce about 50 million litres a day of petrol which implies the refinery will have about 15 million litters for export.

Dangote Refinery is expected to generate revenue of about N3.1 trillion from petrol in a full operating year which we arrived at by multiplying the expected production of 50 million litres a day of petrol by landing cost of petrol of N171 by 365 days.

Although, we also acknowledge that the landing cost of N171 might have increased due to higher oil prices and Dangote is expected to pump around 20,000 barrels a day from two shallow-water blocks, known as OML 71 and 72, located in the Niger River delta in south eastern Nigeria.

The refinery is also expected to produce about 15 million litres of diesel which will generate about N947 billion in a full operating year. We arrived at N947 billion by multiplying the 15 million litres by landing cost of diesel of N173 by 365 days. This means the Refinery could generate annual revenues of N4.04 trillion or $11 billion per annum.

Valuation of Fertilizer Plant

BusinessDay estimates the potential market value of Dangote Fertilizer plant to be estimated around $4.67 billion.
This value was estimated using the average market valuation US based Nutrien limited and Norway based Yara International who are among the largest fertilizer plants in the world and also generates 100 percent of their revenue from fertilizer.

We estimated the market value per output of the Fertilizer plant as a standalone from the business by multiplying the percentage contribution of the Fertilizer income to total revenue of the Fertilizer companies with their total market capitalization.

We then estimated the average value of per output in the fertilizer plants to be $1,556. To obtain the market capitalization of the Fertilizer plant, we multiplied the production capacity of the fertilizer plant which is 3 million metric tonnes per day with the average market price per fertilizer output which gave us an estimated market value of $4.67 billion.
“It will attract foreign investor’s attentions to Nigeria and also further place the country on the worlds stage as investors will be looking to tap into the huge opportunities in the oil and gas sector, which is an area government have failed over the years,” Ayodeji Ebo CEO at Afri-invest securities Limited said.
Currently being constructed on a 2, 200 hectares at the Lekki Free Trade zone in Lagos, with capacity to refine 650,000 barrels of crude per day, and a petrochemical plant of 750,000 metric tonnes of polypropylene per annum, it is 13 times bigger than the Indorama Eleme Petrochemicals Limited.

“The planned IPO will easy the issues of PMS, reduce importation of fuel and also reduce volatiles in terms of pricing,” Ebo told BusinessDay.

Projected to be the biggest refinery in Africa, it is also projected to have 1.5 times more capacity than the existing four oil refineries in the country, even if they are operating at 100 per cent while the 3 million metric tons a year capacity fertilizer plant located near the refinery will probably be producing its first batches of urea by the end of this year costing around $2.5 billion.

Ebo also noted that the planned IPO will be highly successful as Dangote is already a global brand and foreign investors will like to associates with the name.

Edwin Devakumar group executive director at Dangote Industries Ltd confirmed that the company has been in talks with oil traders including Royal Dutch Shell Plc, Vitol Group and Trafigura Group about supplying the refinery with crude and buying refined products.

BusinessDay contacted Shell a multinational oil firm working in Nigeria to confirm if they anticipating the Dangote refinery; “we can’t comment on speculated commercial talks with third parties,” a top official of Shell told BusinessDay by email.

The plant is designed to process light and medium grades of crude and produce fuels that meet European standards so that Dangote can sell them globally as Dangote is expected to start producing its own oil, partly to supply the refinery, within a few months. It aims to pump around 20,000 barrels a day from two shallow-water blocks, known as OML 71 and 72, located in the Niger River delta in south-eastern Nigeria.

“While Dangote took on a $3.3 billion syndicated loan, which Standard Chartered Plc arranged, most of the refinery and fertilizer projects are self-funded. Both units will probably be partly sold via initial public offerings eventually,” Devakumar said.

Dangote selected Engineers India Ltd. (ENGR) to do most of the detailed engineering work for the new plant. Construction contractors have yet to be appointed.

SEC: MTN Has Not Applied for Regulatory Review of Planned IPO

Monday 9 July, 2018

The Securities and Exchange Commission (SEC) on Sunday disclosed that it was unaware that telecommunications giant, MTN Nigeria Limited, has filed an application to it to review its plan to undertake an Initial Public Offering (IPO) in Nigeria’s capital market.

The SEC, in a statement sent to THISDAY in Abuja, explained that neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application with it regarding the IPO.

It thus debunked media reports claiming it was holding back the telecommunications firm’s plan to undertake the IPO.

“The commission wishes to categorically state that the information contained in the said publication is false, misleading and without merit.

“Additionally, the commission would like to state that MTN Nigeria Limited to the best of the commission’s knowledge is a private company limited by shares, As at the date of this circular, neither MTN Nigeria Limited nor any of its advisers or representatives has filed any application with the SEC regarding the said IPO,” said the statement.

It added: “Given that there is no application from MTN before the commission, there could not have been a request by MTN or any of its representatives or advisers requiring any form of regulatory review.”

The SEC said it would welcome filings aimed at deepening and broadening Nigeria’s capital market and was ready to provide the necessary regulatory support to ensure such happened.

According to it, “If MTN finally files a formal and complete application with the commission, it would be treated with the usual diligence and urgency that is applicable to all such filings.”

“Furthermore, we wish to remind all capital market operators of their duty not to furnish information, which is false, and misleading in any material particular as the commission would not hesitate to take necessary regulatory actions on any erring market operator.

“The commission remains committed to its core mandate of investor protection and maintaining the integrity of the Nigerian capital market,” it added.

Last year, MTN group announced that its Nigerian business will be listed on the Nigerian Stock Exchange this year, by way of initial public offering (IPO). Significant progress has been recorded vis-a-vis the IPO, which is expected to be concluded next month.

We establish a compelling investment case for MTNN, considering the company�s impressive track record which is supported by scaled market position and the first-mover advantage. Beyond that, it is difficult to ignore the telco�s new growth initiatives - to be implemented by a sound management team which could potentially propel earnings to new highs over the medium term.

Nigeria�s telecommunication industry � quick facts

Facts

Largest telecoms market in Africa
Four mobile telecom operators
160.5 million mobile subscribers with teledensity and penetration rate at 114.7% and 75% respectively
MTN is the market leader (65.2 million subscribers at 40.7% market share)
101.2 million data subscribers
Contributed 9.2% to overall GDP in Q1-18

At Theanalyst, our articles, materials and contents stem from critical research work and analysis which are of world class standard that require investment. Hence, we regard them as intellectual property which should not be trampled on. Please, do not cut & paste articles, rather share with the sharing tools provided below the articles. See our Terms & Conditions and Copyright Policy for more details or Email: [email protected] to know more.

2018 CLOSURE OF REGISTER - DIVIDENDS AND BONUSES

Thursday 17 May, 2018

2018 CLOSURE OF REGISTER - DIVIDENDS AND BONUSES

Company	Dividend/share	Bonus	Closure of Register	AGM Date	Payment Date
Vitafoam Nigeria Plc	N0.15	Nil	19^th – 23^rd February 2018	8^th March 2018	9^th March 2018
Nigeria Energy Sector Fund	N102	Nil	19^th – 23^rd February 2018	N/A	23^rd February 2018
Nigerian Breweries Plc	N3.13	Nil	7^th – 13^th March 2018	20^th April 2018	23^rd April 2018
Transcorp Hotels Plc	N0.1245	Nil	7^th March 2018	16^thMarch 2018	19^th March 2018
Total Nigeria Plc	N14	Nil	19^th–23^rd March 2018	21^st June 2018	22^nd June 2018
Africa Prudential Plc	N0.40	Nil	13^th – 19^th March 2018	27^th March 2018	27^th March 2018
United Capital Plc	N0.35	Nil	9^th – 15^th March 2018	23^rd March 2018	28^th March 2018
Nestle Nigeria Plc	N27.50	Nil	7^th – 11^th May 2018	22^nd May 2018	23^rd May 2018
Medview Airline Plc	N0.03	Nil	21^st–27^th March 2018	28^th March 2018	3^rd April 2018
NASCON Allied Industries Plc	N1.50	Nil	20^th – 23^rd April 2018	3^rd May 2018	8^th May 2018
Zenith Bank Plc	N2.45	Nil	4^th – 9^thApril 2018	13^th April 2018	13^th April 2018
McNichols Consolidated Plc	N0.03	Nil	20^th – 23^rd March 2018	19^th April 2018	24^th April 2018
Guaranty Trust Bank Plc	N2.40	Nil	28^thMarch 2018	10^th April 2018	10^th April 2018
Stanbic IBTC Holdings Plc	N0.50	Nil	29^thMarch – 5^th April 2018	19^th June 2018	20^th June 2018
Julius Berger Nigeria Plc	N1.00	Nil	4^th – 6^th June 2018	21^st June 2018	22^nd June 2018
Dangote Cement Plc	N10.50	Nil	16^th – 20^th April 2018	20^th June 2018	21^st June 2018
Access Bank Plc	N0.40	Nil	13^th – 18^th April 2018	25^th April 2018	25^th April 2018
GlaxoSmithKline Consumer Nig. Plc	(Special Dividend) N7.10	Nil	24^th April 2018 – 4^thMay 2018	24^th May 2018	25^th May 2018
GlaxoSmithKline Consumer Nig. Plc	(Normal Dividend): N0.40	Nil	24^th April 2018 – 4^thMay 2018	24^th May 2018	25^th May 2018
Custodian & Allied Plc	N0.32	Nil	12^th – 17^th April 2018	24^th April 2018	24^th April 2018
Cadbury Nigeria Plc	N0.16	Nil	11^th – 15^th June 2018	6^th July 2018	9^th July 2018
UBA Plc	N0.65	Nil	10^th April 2018	23^rd April 2018	23^rd April 2018
MRS Oil Plc	Nil	1 for 5	2^nd – 6^th July 2018	1^st August 2018	Not Applicable
Continental Re-Insurance Plc	N0.14	Nil	16^th – 20^th April 2018	25^th April 2018	26^th April 2018
CAP Plc	N2.05	Nil	28^th May 2018 – 1^stJune 2018	13^th June 2018	14^th June 2018
AXA-Mansard Insurance Plc	N0.06	Nil	24^th April 2018	10^th May 2018	10^th May 2018
Newrest ASL Plc	N0.18	Nil	12^th – 15^th June 2018	27^th June 2018	28^th June 2018
11 Plc (Formerly Mobil Oil Plc)	N8.00	Nil	28^th May – 1 June 2018	28^th June 2018	2^nd July 2018
Dangote Flour Mills Plc	N0.20	Nil	23^rd – 27^th April 2018	22^nd June 2018	27^th June 2018
UAC of Nigeria Plc	N0.65	Nil	15^th – 18^th May 2018	20^th June 2018	21^st June 2018
Pharma-Deko Plc	N0.05	Nil	7^th – 11^th May 2018	22^nd May 2018	23^rd May 2018
Law Union & Rock Insurance Plc	N0.04	Nil	27^thApril 2018 – 2^ndMay 2018	3^rd May 2018	5^th May 2018
May & Baker Nigeria Plc	N0.20	Nil	23^rd – 27^th April 2018	31^st May 2018	6^th June 2018
FCMB Group Plc	N0.10	Nil	13^th – 19^th April 2018	27^th April 2018	30^th April 2018
Lafarge Africa Plc	(Dividend from Pioneer Profit) N1.50	Nil	23^rd – 27^th April 2018	16^th May 2018	16^th May 2018
Transnational Corporation of Nig Plc	N0.02	Nil	18^th – 24^th April 2018	30^th April 2018	2^nd May 2018
Okomu Oil Plc	N3.00	Nil	15^th – 18^th May 2018	12^th June 2018	25^th June 2018
Beta Glass Plc	N1.07	Nil	18^th – 22^nd June 2018	5^th July 2018	6^th July 2018
AIICO Insurance Plc	N0.05	Nil	21^st – 23^rd May 2018	24^th May 2018	25^th May 2018
Unilever Nig. Plc	N0.50	Nil	16^th – 20^th April 2018	10^th May 2018	11^th May 2018
The Frontier Fund	(Proposed Coupon) N7.50	Nil	23^rd April 2018	N/A	27^th April 2018
Nigerian Aviation Handling Co. Plc	N0.25	Nil	3^rd – 5^th July 2018	20^th July 2018	20^th July 2018
Regency Alliance Insurance Plc	N0.03	Nil	30^th April – 4^th May 2018	24^th May 2018	25^th May 2018
Dangote Sugar Refinery Plc	N1.25	Nil	16^th – 20^th April 2018	21^st June 2018	22^nd June 2018
Sterling Bank Plc	N0.02	Nil	30^th April – 4^th May 2018	17^th May 2018	17^th May 2018
Presco Plc	N2.00	Nil	9^th – 13^th July 2018	25^th July 2018	26^th July 2018
Rak Unity Petroleum Company Plc	N0.10	Nil	23^RD – 27^TH July 2018	16^TH August 2018	16^TH August 2018
Berger Paints Plc	N0.50	Nil	7^TH - 11^TH May 2018	7^TH June 2018	8^TH June 2018
Eterna Plc	N0.40	Nil	24^TH – 28^TH May 2018	19^TH June 2018	20^TH June 2018
Caverton Offshore Support Group Plc	N0.15	Nil	26^TH April 2018	8^TH May 2018	8^TH May 2018
B.O.C. Gases Plc	N0.20	Nil	4^TH– 11^TH June 2018	28^TH June 2018	28^TH June 2018
Learn Africa Plc	N0.14	Nil	9^TH – 13^TH July 2018	2^ND August 2018	3^RD August 2018
Consolidated Hallmark Insurance Plc	N0.02	Nil	7^TH – 11^TH May 2018	22^ND May 2018	22^ND May 2018
Aluminium Extrusion Industries Plc	N0.085	Nil	13^TH – 17^TH August 2018	21^ST September 2018	24^TH September 2018
FBN Holdings Plc	N0.25	Nil	7^th – 11^th May 2018	15^th May 2018	16^th May 2018
Infinity Trust Mortgage Bank Plc	N0.02	Nil	10^th – 17^th May 2018	24^th May 2018	30^th May 2018
Vetiva S & P Nig. Sovereign Bond ETF	N12.50	Nil	26^th April 2018 (Record date)	N/A	4^th May 2018
NPF Microfinance Bank Plc	N0.17	Nil	4^th – 8^th June 2018	28^th June 2018	28^th June 2018
Fidelity Bank Plc	N0.11	Nil	14^th – 18^th May 2018	25^th May 2018	25^th May 2018
Vetiva Griffin 30 ETF	N0.25	Nil	26^th April 2018 (Qualification date)	N/A	4^th May 2018
Seplat Petroleum Dev. Co. Plc	US$0.05	Nil	17^th May 2018	Interim Dividend	8^th June 2018
Omoluabi Mortgage Bank Plc	N0.01	Nil	21^st – 25^th May 2018	26^th July 2018	1^st August 2018
Capital Hotel Plc	N0.05	Nil	11^th – 15^th June 2018	27^th June 2018	4^th July 2018
Lasaco Assurance Plc	N0.04	Nil	4^TH – 8^TH June 2018	21^ST June 2018	5^TH July 2018
Cement Company of Northern Nig. Plc	N1.25	Nil	18^th – 22^nd June 2018	28^th June 2018	29^th June 2018
Smart Product Nigeria Plc	N0.10	Nil	30^TH July – 3^RD August 2018	30^TH August 2018	21^ST September 2018

EUROCOMM SECURITIES LIMITED JOINS NASD OTC MARKET

Thursday 13 August, 2015

NASD OTC

New traders join NASD OTC

Seven authorised traders joined the NASD OTC market this week, (July 7, 2015) bringing the total registered traders of all participating institutions to 163

Seven authorised traders joined the NASD OTC market this week, (JULY 7, 2015) bringing the total registered traders of all participating institutions to 163.

This growth is expected and indicates an increase in investors’ choice of brokers who are empowered to deliver above board services to investors in unlisted securities in Nigeria.

These traders can advise and transact on behalf of their clients on the NASD OTC platform.

These individuals firms who have successfully completed their membership requirements with the NASD OTC and were inducted to trade on the market include: Covenant Securities and Asset Mgt Limited, Dynamic Portfolio Limited, Eurocomm Securities Limited, Interstate Securities Limited and Readings Investment Limited.

NASD is a promoter of a trading network that eases secondary market trading of all security of unquoted public companies primarily in Nigeria but with a focus on the West African region.