By Nse Anthony-Uko
(Sundiata Post) — Japaul Oil and Maritime Services Plc has signed a $350 million financing agreement with Milost Global Incorporated.
The financing was arranged and negotiated by Palewater Advisory Group Inc in New York and Banklink Africa Limited in Nigeria, according to Nairametrics,
The funds will be injected into the company, with a focus on its mining operations. Milost Global had recently acquired Primewaterview Holdings Nigeria Limited, a real estate firm for $1 billion.
The Company has been recording losses for the past two years as the management attributed the loss to the challenging operating landscape, worsened by the impact of the naira devaluation by the Central Bank of Nigeria (CBN) in 2016.
Explaining the loss, Japaul Oil said that the devaluation of the naira against the United States dollar by the CBN from N196.50 to a dollar in 2015 to N304.50 to a dollar in 2016, resulted in significant foreign exchange losses accounting for over 70 per cent of the group’s loss.
According to the company, weak economic fundamentals and its effect on the oil and gas sector with similar impact on the maritime industry further hampered topline growth, leading to poor revenue generation for the company.
The poor performance notwithstanding, the company reaffirmed that with improved business environment in 2017, the current restructuring efforts within the group, evidenced by the recent sale of its foreign subsidiary and the continued support of shareholders, the fortunes of the company will be transformed.
It further stated that the repositioning initiatives being undertaken, would continue in order to achieve improvements in its underlying asset quality, cost efficiency and enhanced revenue generation across the group.
As part of the restructuring, the company appointed a new group managing in the person of Mr. Kayode Olusegun-Ojo; an acting deputy managing director, Mr. Akinloye Oladapo and executive director, Finance and Planning, Mr. Olubunmi Falua.
Capital market analysts said this will help in improving the company’s performance and bringing it out of losses. Japaul Oil shares closed at 36 kobo per share on February 16, 2018, with a year to date loss of 28 per cent.
Japaul Oil & Maritime Services Plc was first incorporated in 1994 as a private limited liability company with an authorised and paid up share capital of N1 million. The company commenced active business operations in 1997, and is listed on the Nigerian Stock Exchange (NSE). Japaul Oil and Maritime Services provides marine offshore construction, marine equipment leasing, and oilfield marine support services.
Japaul Mines and Products Limited, is a mining company whose quarries are located in Elegbeka, Ifon, Ondo State and Ibarakom Village, Forestry Road, Njagachang, Akampa, Cross Rivers State, Nigeria.
Japaul Maritime Services Signs $350m To Boost Operation
By Nse Anthony-Uko