Capital Oil suffers 99% losses in Q3

A downstream oil firm, Capital Oil and Gas Plc has declared loss after tax of 99 percent, from N43.5 million as at September 30, 2015 to N21.9 million by September 30,in its third quarter result.
The oil firm reported a 28 per cent decline in revenue at N650.1 million from N808.5 million in 2015, its cost of sales declined by 21 per cent, dropping from N753.4 million to N594.4 million as selling and distribution expenses reduced by 52 per cent from N44.5 million to N21.4 million.
Information available to The Point showed that despite cost reduction as evident in salaries, and wages that dropped by 39 per cent from N29.4 million to N18.1 million and administrative and overhead cost, which also dropped by 9 per cent, to N74.1 million, from N81.6 million, the company recorded an operating loss of N57.9 million, 452 per cent higher than the N10.5 million reported as operating loss in 2015.
Other incomes from accrued rents and rent receivables was boosted by 35 per cent to N2.2 million from N1.6 million, but finance income dropped to N720,000 from N750,000 while finance cost grew by 20 per cent to N14.6 million from N12.2 million.
Consequently, loss before tax of the firm shot up by 243 per cent to N69.6 million, from N20.3 million; as earnings per share worsened to -N1.42 from N2.38 per share.
Capital Oil’s statement of financial position showed that shareholders’ fund depleted by 7 per cent to N742.4 million in the period under review, while total assets were also down 3 per cent from N1.678 billion to N1.635 billion recorded in 2015.
Similarly, food and beverage producer, Cadbury Nigeria Plc, also declared loss after tax for the nine-month period ended September 30, posting a loss of N842.15 million from a profit of N28.55 million recorded a year ago.
The company’s loss before profit in the review period was N842.15 million from a profit of N40.78 million reported in the corresponding same period of 2015.