C&I Leasing hopeful of improved profit, dividend on key initiatives

As shareholders okay firm’s 5kobo dividend
C&I Leasing Plc has expressed optimism about the firm’s consistent profitability and dividend payout as key initiatives embarked upon by the management to boost performance continue to reflect in its operations.

The Managing Director of the company, Ugoji Lenin Ugoji, while speaking in an interview at the end of the company’s 33rd yearly general meeting held in Lagos, yesterday, disclosed that the firm has commenced the trial with electric cars, stating that the firm is currently servicing a major company in Ghana.

According to Ugoji, the company has also commenced research on CNG vehicles in Nigeria to enhance efficiency and business operations.

He pointed out that these initiatives would reduce the average cost of operating a vehicle and open up new investment opportunities for the company.

In addition, he said the increment in the number of years for contacts in the oil & gas would attract more investment in the vessel acquisition space which would enhance its operations in the space.

“The policy of the new administration is clearly towards increasing oil production because the country is in dire need of more revenue. Based on this, increased production would require increased use of vessel and marine services which we provide.”

“There is a positive outlook for us in 2024 and 2025 and with this, we will gradually start having a sustainable dividend going forward.”

Also at the meeting, the shareholders endorsed a dividend of five kobo to every investor of the company for the 2023 financial year.

Earlier, the chairman of the company, Samuel Maduka Onyishi, assured that the firm remained resolute in harnessing the opportunities that the current reality presents to enhance the group’s profitability and shareholder value.

He said the company would continue to navigate these challenges by proactively embracing change, exploring new diversification initiatives, implementing cost optimisation strategies and leveraging technology to offer innovative solutions for its clients.

He said the group’s gross earnings increased by 25 percent from N17.94 billion in 2022 to N22.41 billion in 2023 largely driven by growth in net lease income.

Also, the operating profit of the group increased by 14 percent from N4.99 billion in 2022 to N5.69 billion in 2023 while Profit Before Tax (PBT) of the group increased by 52 percent from N1.02 billion in 2022 to N1.55 billion in 2023.

He added that the group also recorded a Profit After Tax (PAT) of N273 million compared to N577 million achieved in 2022.

“Going forward, by next year, the dividend will do better. We are working to make sure more of our vehicles are on the road. Our target is to make sure this company looks up. No more losses,” he said.