Nigeria’s leading agro-allied company, Notore Chemical Industries Plc, has recorded revenue of N9.43bn for the third quarter ended 30th June 2021, in the wake of the completion of its Turnaround Maintenance Programme (TAM).
In a statement by its Group Managing Director / Chief Executive Officer (CEO), Mr. Ohis Ohiwerei, the company said during the period under review, it focused on post-TAM plant stabilization and optimization to ensure that the company meets its 500,000MT per annum nameplate capacity.
According to him, “Due to gas supply disruptions beyond the Company’s control, it has taken longer than expected to complete the post-TAM plant stabilisation phase. The gas supply challenge has now been resolved and we expect a major upturn in the Plant’s reliability and production output to meet and sustain its 500,000MT per annum urea nameplate design capacity.
“Achieving this level of production output will not only lead to significant increase in the Company’s cash flows from operations, but also substantial increases in revenues annually. It is worth noting that a sizeable portion of the additional post-TAM revenue will contribute straight to the Company’s bottom line, a major key to returning the Company to profitability.”
He said the production and sale of Notore NPK fertilizer into the domestic market is expected to contribute to the company’s revenue growth going forward, noting that Notore’s NPK Fertilizer brand has been widely accepted by the market.
He added, “As we ramp up our Urea fertilizer production, we expect substantial increases in NPK fertilizer production and sales going forward. Sale of Notore seeds to Nigerian farmers has also continued in furtherance of our corporate vision to be a major contributor to the development of Africa.
Ohiwerei said the company has recorded impressive success with the phase one of its expansion into rice production.
He said, “As part of our efforts to further diversify the Company’s revenue stream, boost profitability and consolidate customers’ loyalty, Notore intends to expand its product offering by going into rice production. With the successful completion of the Company’s phase one rice pilot program (which resulted in the production of 5,000 50kg bags of high-quality Notore rice), we commenced phase two during the period under review. We expect phase two to yield even better results and position us for the commercial launch of our rice brand next year.”
Noting that the Nigerian fertilizer demand remains robust and promising, he said: “Upon completion of the post-TAM stabilization of the plant, we expect a major upturn in the Plant’s reliability and production output to meet and sustain its 500,000MT per annum urea nameplate design capacity.”
