NAHCO Records N203m Profit in Six Months, Market Rebounds

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Nigerian Aviation Handling Company (nahcoaviance) Plc has posted improved results for the half year ended June 30, 2017, raising investors’ hopes for higher dividend at the end of the year.

The company posted a revenue of N3.707 billion and profit before tax of N203 million for the H1 of 2017. Although the revenue showed a decline compared with N3.674 billion in the corresponding period of 2016, the PBT was higher than the N125 million recorded in 2016.

Profit after tax similarly rose by 94 per cent to N176 million, compared with N90.5 million in 2016. Market operators said if NAHCO could maintain the trend in the remaining half of the year, shareholders should expect a higher dividend.

The company had paid a dividend of 22 kobo per share for 2017, which was approved by the shareholders at the 36th annual general meeting (AGM) of the company in Abuja in July.

The elated shareholders commended the board and management for the improved results despite the challenging operating environment.

Also, the shareholders pledged their support for better future results and urged the board and management to sustain the performance.

In his address to the shareholders, Chairman of NAHCO, Usman Bello said in spite of the recession and the global weakness in the aviation sector, the company’s performance was commendable.

“Our resilience as a company and our debt management strategies resulted in Bond 1 repayment of the N2.15 billion in the third quarter of 2016,” he said.

Speaking on the diversification programme, Bello noted that NAHCO Free Trade Zone (NFZ), thatwas approved by shareholders in 2011 a subsidiary of the company has made some milestone.

“Some of the services offered by the NFZ include: cargo handling, supply chain management, logistics, equipment leasing and other value-added services. Phase I of its development has been completed and now operating at almost full capacity. We are currently making preparations to start building phase 11 and phase 111 of the company,” he said.

The chairman assured stakeholders that despite early unexpected expenses the company was forced to incur in the first quarter of 2017 as a result of closure of Nnamdi Azikiwe International Airport, theyear would still be profitable for NAHCO.

Meanwhile, the stock market rebounded yesterday after three days of bearish trading occasioned by profit taking. The Nigerian Stock Exchange (NSE) All-Share Index appreciated by 0.59 per cent to close at 36,316.58 , while market capitalisationended higher at N12.52 trillion.