Okomu Oil Shares Rise by 38% within 2 Weeks

09 Apr 2012

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Trading session in the NSE

By Goddy Egene

The shares of Okomu Oil Palm Plc appreciated by 38.4 per cent in two weeks  as investors reacted  positively to an impressive 2011 financial performance and  robust dividend proposal.

The company, which is into the development and management of oil palm and rubber plantations, as well as processing of palm oil, recently proposed a final dividend of N4.00  per share for the year ended December 31, 2011.

Okomu Oil Palm posted a turnover of  N11.121 billion in 2011 up from  N6.088 billion in 2010, while profit after tax  soared from  N1.629 billion to N3.924 billion.

The board of directors of the company, therefore, recommended a final dividend of N4.00 per share. This brought the total dividend to N5.00 per share have recommend an interim dividend of N1.00 last year.

In apparent  move by some  investors to benefit from the dividend, they have increased demand for the shares of Okomu Oil, a development that had impacted positively on its price at the stock market in the past two weeks.

Okomu Oil rose by 38.4 per cent from N24.20 penultimate week to N33.50 per share last week. 

Market analysts said given the performance of the company, the rise would be sustained for a long time despite  the lull some  other equities were experiencing.

Chairman of the Okomu Oil, Mr. Gbenga Oyebode, had last year told shareholders that the firm would  consistently pay attention to corporate governance and obey the laws of the country while staying focused on doing business to the satisfaction of all stakeholders.

He had said: “We are the leaders in Nigeria in terms of Oil Palm and rubber and that is evident by the results of our company. Our turnover and profit continues to increase, we continue to pay dividends and our shareholders are happy.”

According to him, one of the major strategies of the company is sourcing and buying of seeds from the best institutions across Africa and continuous planting of same.

“Okomu Oil Palm Plc will not relent in its effort to the agricultural sector of our country Nigeria. We currently have thirty thousand hectares of land in a part of the country that has been renowned to have the best land for rubber in the whole world. This is why we will continue to plant and export rubber and other palm products,” he said.  

Also speaking last year, the Managing Director of the company, Mr. Graham Hefer, expressed appreciation to the shareholders for their faith in the company, saying: “We remain grateful to all our shareholders and their associations and we assure you that we will continue to serve you better.”

Tags: Nigeria, Featured, Business, NSE

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