NIGERIA – Dangote Sugar Refinery (DSR) Plc on Monday reported a profit before tax of N10.3 billion for the half year ended June 30, 2014, showing a decline of 5.5 per cent compared to N10.9 billion recorded in the corresponding period of 2013.
Details of the results made available by the Nigerian Stock Exchange (NSE) showed that DSR ended the period with revenue of N49.6 billion, indicating a decline of 9.8 per cent from the N55 billion recorded in 2013.
The decline in revenue was attributed to a two-week plant upgrade which took place in May and gas supply disruptions for a couple of weeks in June. Low pour fuel oil (LPFO) provided an alternative energy source during that period.
The company improved on its operational efficiency as cost of sales, distribution and other expenses declined as well.
For instance, cost of sale fell by 7.6 per cent from N39.6 billion to N36.6 billion. Similarly, distribution expenses dipped by 55 per cent from N6.57 billion to N2.925 billion.
But, other income, which stood at N2 billion in 2013, was only N304 million in 2014, showing a dip of 84 per cent. Financial charges also stood at N75 million as against nothing in 2013. Consequently, PBT fell to N10.263 billion in 2014, as against N10.859 billion in 2013.
Profit after tax witnessed a lower decline of 2.6 per cent, falling from N7 billion to N6.83 billion.
Despite the decline in results, the shares of DSR closed positively at the stock market yesterday, appreciating by 10 kobo to close at N9.10 per share.
However, in all trading at the stock market resumed on a negative note as the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.31 per cent to close at 41,801.51. Similarly, market capitalisation shed N44 billion to close at N13.803 trillion.