Notore Chemical Industries Plc, has recorded a six percent growth in revenue to ¦ 17.4 billion, as well as operating income of ¦ 3.8 billion for the nine months ended June 30, 2020.
The company disclosed this in its unaudited Q3 2020 financial results.
In a statement, it said, “There has been good progress with the on-going Turn Around Maintenance (TAM) programme on the existing plant. Significant increases in production outputs and revenues are projected after TAM is completed at the end of December 2020 as expected.”
Giving further breakdown of its results, the company said, “The gross revenue stands at ¦ 17.42 billion, compared to ¦ 16.49 billion in Q3 2019, representing six percent YoY growth, indicating a modest increase in production output and sales, while operating income is ¦ 3.79 billion, compared to ¦ 3.34 billion in Q3 2019, representing an increase of 13 percent, YoY, driven largely by increases in other income.
The company further noted that its debt service cost stood at ¦ 11.89 billion, up by 14 percent YoY, from ¦ 10.45 billion in Q3 2019, due to additional term borrowing to finance the TAM programme and the impact of Naira devaluation on foreign currency denominated loans.
It continued: “Notore’s gradual revenue growth is attributable to some improvements in Plant reliability derived from the on-going Turn-Around Maintenance (TAM) programme, which has begun to impact positively on Plant operations, resulting in some modest increases in production volumes and production on-stream days during the period.”
Commenting, Notore’s Group Managing Director, Mr. Onajite Okoloko, said, “Having installed and commissioned a brand new 2,000 metric tons per day NPK Blending Plant with capacity to produce various crop specialty blends of NPK fertilizer, the company is consolidating customer loyalty by expanding its product offerings.
“The NPK Plant has now commenced commercial production and sale of bulk dry blended NPK fertilizer varieties. Additionally, the company entered into partnership with the NAIC-NPK LIMITED during the period for the blending, packaging, sale and distribution of NPK fertilizer for the year 2020 farming season under the Presidential Fertilizer Initiative (“PFI”).”