Nigeria’s Okomu Oil Palm Retreats After Profit Slides 14%
Okomu Oil Palm Plc (OKOMUOIL), a Nigerian producer of the kernels, fell for the first time in more than three weeks after reporting a 14 percent drop in first-half profit.
The stock lost 4.4 percent, its first decline since July 6, to close at 30 naira in Lagos, Nigeria’s commercial capital.
Net income slipped to 2.5 billion naira ($15.6 million), from 2.9 billion naira a year earlier, the Benin City, Nigeria- based company said in a statement published on the website of the Nigerian Stock Exchange today. Revenue rose to 6.1 billion naira from 5.72 billion naira.
“The fall in price is a reaction to the decline in profit,” Raheem Mohammed, chief operating officer of Lagos- based Kundila Finance, said by phone today. Some investors are worried that the company may not match its performance last year, he said.
Okomu’s shares have risen 30 percent this year, compared with a 11 percent rise in the Nigerian Stock Exchange All-Share Index over the same period.
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