MOBIL Declares N9.33bln PAT in 2018 Audited Result, Proposes N8.25K Final Dividend

Friday, March 22, 2019 06:15 PM / NSE

CLICK HERE TO VIEW MORE

Implications

Downward adjustment to consensus estimates expected following weaker-than-expected results. Compared with our estimates, while sales were slightly below our N40.8bn forecast, PBT missed by 44%. The variance was driven by negative surprises on the opex and other income lines. FY PBT of N13.7bn came in well behind consensus estimate of N16.5bn. Management proposed a final dividend of N8.25, slightly behind consensus forecast of N9.35.

Positives

Besides Q4 2018 sales growth of 7% y/y to N39.6bn there were no other positives.

Negatives

The P&L trend below the sales line was negative on a y/y basis. A gross margin contraction of -314bps y/y to 9.6%, opex growth of -31% y/y and other income decline of -24% y/y completely offset topline growth. On a sequential basis, the trend was broadly similar.

Year-to-date, 11’s shares have shed around -10% vs. the broad market’s -1.2% decline.

We rate the stock Neutral. Our estimates are under review.

11 PLC Q4 2018 results vs. FBNQuest Capital Research estimates (N millions)

Source: NSE, FBNQuest Capital Research estimates

Related News

1.         MOBIL Declares N2.42bn PAT in Q3 2018 Results,(SP:N151.00k)

2.        Mobil Oil Nigeria Plc Changes Name to 11 Plc

3.        Mobil Oil Nigeria Q1 2017 Results Review - Acquisition-related Charges Weigh on

4.        Address by the GMD of NIPCO Plc on the Occasion of the Closing Gong Ceremony at

5.        Mobil Oil Nigeria Plc - Another IOC Exits Downstream

6.        NIPCO Investments Limited Completes N90bn Acquisition of ExxonMobil s Stake in M