Three Stocks That Are Grabbing Our Attention

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United Capital Plc is a leading financial services Group in Africa focused on leveraging technology to empower businesses, individuals and governments with excellent financial services, while contributing to economic growth and prosperity across Africa by supporting financial inclusion. They offer a wide range of services which include Investment Banking, Asset Management, Trustees, Securities and Wealth Management.

UCAP’s Q2 results revealed outstanding growth in top-line items on the income statement. Its gross earnings generated approximately ₦6.9 billion which represents a 54.13% growth compared to the second quarter of 2020. This growth is majorly attributable to increases in fees and commission income by 128% and investment income by 26.55%, when compared to the second quarter of 2020. Ultimately, UCAP’s Profit After Tax (PAT), stood at ₦3.1 billion, representing a 64.21% growth. Notably on the company’s balance sheet, on the asset side, significant growth occurred on its cash and cash equivalents. This line item grew by 365.90% from ₦43.4 billion to ₦202.3 billion, pushing its total assets to grow by 43.77% to ₦320.2 billion.

The company has shares outstanding of 6,000,000,000 units and a total market capitalization of ₦44,100,000,000, using the current market price, as of Friday’s close, of ₦7.35. According to Bloomberg, the company’s P/E ratio stands at 5.62, Earnings Per Share at 1.31, and dividend yield at 9.79%.

Its share price has grown by 56.05% Year-to-Date (YtD) even after paying a dividend of ₦0.70. This year’s dividend payment represents a 40% growth from last year’s dividend payment of ₦0.50. The company has never paid an interim dividend.

Total Nigeria Plc is a marketing and services subsidiary of Total Energies; a multinational energy company operating in more than 130 countries, and committed to providing sustainable products and services for its customers. Total Nigeria Plc is one of the leaders in the downstream sector of the Nigerian oil and gas industry, with an extensive distribution network of over 570 service stations nationwide and a wide range of top-quality energy products and services.

Its Q2 results revealed a great recovery from the COVID-19 pandemic that affected the oil and gas sector. Its revenue generated is approximately ₦151 billion, which represents a 42% growth compared to the second quarter of 2020. This growth is majorly attributable to increases in revenue generated from petroleum products by 36.2% and other revenue including lubricants by 62.4%, when compared to the second quarter of 2020.

Ultimately, Total’s Profit After Tax (PAT), stood at ₦8.1 billion, representing a 1601% growth after posting a loss after tax of ₦537 million, when compared to the corresponding previous quarter. Notably on the company’s balance sheet, on the asset side, significant growth occurred on its cash and cash equivalents. This line item grew by 78.2% from ₦31.01 billion to ₦55.3 billion, pushing its total assets to grow by 30.15% to ₦186.9 billion.

The company has shares outstanding of 339,521,837 units and a total market capitalization of ₦68,990,837,278.40, using the current market price as of Friday’s close of ₦203.2. According to Bloomberg, the company’s P/E ratio stands at 6.47, Earnings Per Share at 31.42, and dividend yield at 1.97%.

Its share price has grown by 56.31% Year-to-Date (YtD) even after paying a final dividend of ₦6.08. The company has also announced an interim dividend payment of ₦4.00. Its qualification date is on the 13th of August, 2021 and the payment date is slated for the 13th of September, 2021.

Comparing full-year dividends, this year’s payment represents a 9.39% decline from last year’s dividend payment of ₦6.71 although the company did not pay an interim dividend last year.

Ardova Plc is a Nigerian-based leading indigenous and integrated energy company involved in the distribution of petroleum products. The company has an extensive network of over 450 retail outlets in Nigeria and significant storage facilities in Apapa, Lagos and Onne, Rivers State. Its main business is the procurement and distribution of petrol (PMS), diesel (AGO), kerosene (DPK) and liquefied petroleum gas (LPG). The company is also involved in the manufacturing and distribution of a wide range of lubricants from its oil blending plant in Apapa, Lagos.

Its Q1 results also reveal great recovery from the COVID-19 pandemic that affected the oil and gas sector, just like with Total. Its gross profit stood at approximately ₦3.2 billion which represents a 15% growth compared to the first quarter of 2020. Ultimately, it puts the Profit After Tax (PAT) at ₦850 million, representing a 71% growth after posting a profit of approximately ₦500 million when compared to the corresponding previous quarter.

The company has shares outstanding of 1,302,481,103 units and a total market capitalization of ₦20,709,449,537.70, using the current market price as of Friday’s close of ₦15.90. According to Bloomberg, the company’s P/E ratio stands at 11.22, Earnings Per Share at 1.42, and dividend yield at 1.19%.

Its share price has grown by 17.34% Year-to-Date (YtD) even after paying a final dividend of ₦0.19. Since its acquisition of Forte Oil by Abdulwasiu Sowami from Femi Otedola, this is Ardova’s first dividend payment.

When compared with TOTAL, although Ardova managed to maintain a positive result in the previous quarter despite the COVID-19 pandemic, Total has been able to improve its overall top-line performance which shows how significant Total’s market share is compared to Ardova. Both companies have performed well and with the current trend of oil prices, the companies are expected to post even better performances towards the end of the year.

– Nairametrics

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