•Plans N11.3b turnaround maintenance
Sotore Chemical Industries (Notore) Plc yesterday listed its entire paid up share capital on the Nigerian Stock Exchange (NSE), opening up the agro-allied company to the general investing public 13 years after it was privatised by the Federal Government.
A total of 1.612 billion ordinary shares of Notore were listed at N62.50 per share under the agro-allied and chemical subsector of the NSE. Notore, a vertically integrated agro-allied, chemical and power group based in Onne, Rivers State, has six subsidiaries including Notore Supply & Trading Mauritius Limited, Notore Power Limited, Notore Seeds Limited, Notore Foods Limited and Notore Industrial City Limited.
Notore’s turnover has grown from N21.285 billion in 2013 to N35.985 billion in 2017 while profit after tax rose from N1.694 billion in 2013 to N8.652 billion in 2017.
Chairman, Notore Chemical Industries (Notore) Plc, General Yakubu Gowon (rtd) said the listing of the company on the Exchange was a step in the right direction as this will make the company to be stronger.
According to him, the listing will provide an avenue for growth and provide liquidity for the business
“We can now continue to improve and expand upon our current activities, seek out other areas for growth and continue to impact the lives of the average farmer and farming family,” Yakubu said.
He noted that story of Notore is one such that will impact lives, either directly or indirectly adding that the company will work with other stakeholders to achieve more milestones in the years ahead.
Group Managing Director, Notore Chemical Industries (Notore) Plc, Mr. Onajite Okoloko, said the listing would further support Nigerian government’s effort to deepen the capital market while improving liquidity and tradability of the company’s shares.
He said the listing would increase visibility and credibility of the company in the Nigerian market and beyond as well as provide access to capital that will fund the company’s future growth initiatives.
He pointed out that Notore’s strength lies in its huge potential to diversify its revenues due to its favourable location within a prolific gas hub and access to a jetty, which guarantees easy export of any products manufactured in the facility.
According to him, Notore is the only urea producer in sub-Sahara Africa with control over gas supply and has vast distribution network in the local Nigerian market. Notore currently produces 1,000 metric tonnes of urea fertilizer on a daily basis.
“Notore sells 75 per cent of its urea fertilizer locally and export 25 per cent to leading international traders such as Helm AG, Ameropa and Yara. Notore is a licensed independent power producer, which generates electricity for use in the fertilizer plant and residential estate with excess capacity available for sale to nearby offtakers,” Okoloko said.
He said Notore has secured approval for $37 million facility to fund its turnaround maintenance programme (TAM) including acquisition and installation of back-up power supply and critical plant spares.
He noted that the TAM is aimed at restoring the daily production capacity of the company to its 1,500 mtpd design production capacity, adding that Notore is expected to have an incremental production of approximately 150,000mt annually over its current average annual production of 300,000mt.
He outlined that in the medium term; Notore will develop new compound fertilizer blends specifically for major growth crops, expand its seed business and develop a crop protection business.
“We will also leverage the company’s free zone developer status to develop the proposed industrial complex into a gas hub and an integrated logistics service provider to the oil and gas sector,” Okoloko said.
He added that dredging activities are expected to commerce on Notore’s privately owned jetty in 2019, increasing the jetty berth capacity from 15,000mt vessels to 25,000mt.
He assured that the company would continue with its strategy of creating substantial value and building a strong organisation that will support the agricultural sector through the availability of good quality inputs and trainings to the farmers.
Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr Oscar Onyema described the listing of Notore as a promising development in the agro-allied and petrochemical sector as it will encourage more local players to explore the different opportunities in the capital markets for raising long term capital.
He noted that increased participation of indigenous companies in the capital markets will increase investors’ confidence and entrench good corporate governance, transparency and sustainability in the sector.
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•Plans N11.3b turnaround maintenance