Notore identifies huge capacity to diversify revenue as key potential
Notore Chemicals Industries Plc has stated that it’s strength lies in its huge potential to diversify revenues due to its favourable location within a prolific gas hub and access to a jetty.
These key factors, the company said, guarantees easy export of any products manufactured in the facility.
Speaking at the listing of the company’s 1.612 billion ordinary shares at N62.50 per share in the industrial goods sector of the Nigerian Stock Exchange (NSE) in Lagos at the weekend, the Group Managing Director/Chief Executive Officer of Notore Plc, Onajite Okoloko, said Notore is the only urea producer in sub-Sahara Africa with control over gas supply has vast distribution network in the local Nigerian market.
According to him, Notore currently produces 1,000 metric tones of urea fertiliser 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.
“Total capacity of 50 megawatts (MW) with own use requirements of between 8-13MW. Our core business is the production and sale of fertilizer products, which is traded locally (within) Nigeria and exported to West Africa, Southern Africa and Europe”
Notore, a vertically integrated agro-allied, chemical and power group based in Onne, Rivers State has six subsidiaries. They are Notre Supply & Trading Mauritius Limited, Notore Power Limited, Notore Seeds Limited, Notore Foods Limited and Notore Industrial City Limited.
Okoloko said the listing will support the Nigerian government’s effort to deepen the capital markets, improve liquidity and tradability of the company’s shares, increase its visibility and credibility in the Nigerian market and beyond.
“The listing will also increase access to capital in order to fund the company’s future growth initiatives and grant Nigerians the opportunity to participate in the Notore’s growth history,” he said.
Giving a brief history of the company, Okoloko said, formerly O-Secul Fertilizer Company Limited, Notore was established in 2005 to acquire the core assets of the National Fertilizer Company of Nigeria (NAFCON).
On the financial performance of the company, Okoloko said revenue grew from N21.285 billion in 2013 to N35.985 billion in 2017, while profit after tax rose from N1.694 billion to N8.652 billion the respective years.
Looking ahead, the GCEO said Notore has secured approval for $37 million facility to fund its turnaround maintenance program, acquire and install back-up power supply and acquire critical plant spares.
“In the medium term, Notre will develop new compound fertilizer blends specifically for key growth crops, expand the company’s 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”, he said.
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