Oil Rig Japaul Oil and Maritime Services Plc has released its 2018 half-year financial results for the period ended 30th June 2018.
Figures from the result show that revenue for 2018 half year stands at N662 million as compared to N544 million recorded during 2017 half year.
Operating loss of the oil and maritime company also surged from N1.64 billion for the half year 2017 to N3.36 billion in 2018 half year. While Loss before Tax also increased from N3.46 billion in half-year 2017 to N4.79 billion in the half year 2018.
More worrisome is the fact that its Administrative cost has continued to increase from N2 billion the half year 2017 to 3.52 billion in the half year 2018.
Recall that in its 2017 financial results, the company’s revenue plummeted from ₦3.07 billion in 2016 to ₦1.90 billion in 2017. Although, its losses reduced to ₦13.08 billion for the full year 2017 as against a loss of ₦21.3 billion recorded in 2016.
The management of Japaul has always cited harsh economic conditions, low oil prices, huge dollar-denominated liabilities and bank loans as reasons for the downturn in its fortunes.
Figures from its business unit turnover during 2018 half year show its dredging segment recorded N148 million, Offshore services recorded N171 million, its Quarry segment recorded a paltry N83 million, while Japaul International which is currently the cash cow recorded a revenue of N259 million. Japaul’s Many Problem
In its 2017 full year reports, the auditors of the company questioned the going concern status of Japaul reporting that “a matter of uncertainty exist which may cast significant doubt on the Group’s ability to continue as a going concern.”
According to the report of its auditors, Japaul’s current total indebtedness is about N46.4 billion and a scary gearing ratio of 185:1!
Japaul is basically surviving on credit and at the mercy of International Oil Companies which it has contracts with. It is, however, surprising that some of these companies still do business with Japaul despite its poor financial health.
Diamond Bank and Access Bank are also on the hook for a combined N47.4 billion in external loans to the company. Diamond Bank owns about N33.2 billion of the loans to Japaul.Hopes of Japaul’s turnaround was heightened early this year with a widely reported equity financing facility of $350 million agreement with Milost Global Inc under the Mesa Fund 1 , a global opportunity fund that is managed by […]