Despite improving revenue prospects, as seen in the 45.8% YoY increase in H1'24 sales, Dangote Sugar Refinery Plc (DANGSUGAR) is likely to report losses for the second consecutive year in FY'24.
Okomu Oil Palm Company Plc (OKOMUOIL) had an impressive H1'24, with its reported revenue 84.8% higher YoY on the impact of favourable CPO prices and volume increases amidst sustained cost inflation. In view of this performance and subsequent communications with management, we revised our projections for OKOMUOIL and obtained a new 12-month Target Price (TP) of N381.20, which suggests a potential capital appreciation of 10.4%.
In line with our FY'24 forecast, Total Energies Marketing Nigeria Plc (TOTAL) reported a net income of N20.6 billion (+53.2% YoY) in its unaudited H1'24 financials.
In July, bearish sentiments returned to the exchange, with the benchmark index contracting by 2.28% to close at 97,774.22 points. As a result, the year-to-date (YTD) return moderated to 30.76%. The downturn was influenced by negative reactions to earnings reports and proposed regulatory changes (such as the introduction of a windfall tax on banks' realised foreign exchange gains).
The landscape of Nigeria's oil and gas sector continues to unfold with pivotal transformations. Aided by the foundations laid in 2023, the sector is poised for significant leaps across its diverse segments.
The outlook for CPO prices is tilted to the upside in H2'24, driven by constrained supplies due to stagnating global palm oil production and higher biodiesel mandates. Additionally, global demand is expected to remain robust, further supporting higher CPO prices. This combination of higher prices and improved volumes bodes well for the outlook of local players.
