Capital Oil reduces H1 2016 losses by 89%
Capital Oil Plc has announced a loss after tax of N6.5 million for half year (H1) ended June 30th 2016.
Recovering from last year’s sudden sharp decline in prices of petroleum products that hit the global oil and gas industry, the company reported an 89 percent reduction in its losses after tax from N57.4 million recorded a year ago.
Capital Oil released its 2016 half year results via the Nigerian Stock Exchange (NSE) website showing that revenue dropped by 28 percent to N443 million from N615.2 million in June 2015 and Cost of sales reduced 26 percent to N383.7 million from N518.8 million spent as at June 2015.
Consequently, Gross Profit dropped 38 percent to N59.3 million from N96.4 million. The company judiciously reduced its total operating expenses by 27 percent from N75.3 million to N103.1 million and boosted other income by 19 percent to N1.4 million from N1.2 million recorded in the corresponding period of 2015.
Capital Oil reported that its Finance income dropped by 4 percent to N480,000 from N500,000, but reduced finance cost by 76 percent to N9.5 million from N39.1 million recorded in 2015.
Loss before tax thus dwindled significantly by 47 percent to N23.6 million from N44.1 million.
Capital Oil in 2013 sought the concerns of the Nigerian Stock Exchange (NSE) on restructuring its operations to enhance productivity and corporate governance, in order to ensure that the company sustains its listing requirements, which include timely periodic rendition of earnings reports to investors.
The company’s share price has remained stationary in the last one year at its nominal value of 50 kobo, The Company last rewarded its shareholders in 2001 and currently has a loss per share of 21 kobo.
