Nigeria’s Notore reports gross revenue of US$34mn

Fertiliser market 15 MayNotore Chemical Industries Plc, one of the leading fertiliser companies in Nigeria, has released its unaudited 2020 Half Year Financial Results, showcasing gross revenue of US$34mn, operating income of US$6.9mn and net loss before tax of US$15mn for the six months ended 31 March 2020

Onajite Okoloko, group CEO of the company, said, “The modest growth in revenue is attributable to some improvements in plant reliability derived from the ongoing turn-around maintenance (TAM) programme, which has begun to impact positively on plant operations and resulting in some marginal increases in production volume during the period.”

“The domestic fertiliser market is yet to reach its full potential as the consumption of fertiliser per ha of arable land in Nigeria is still far below the 200kg per ha recommended by Food and Agriculture Organization. Furthermore, the demand for urea and compound fertilisers, such as NPK, from the West African markets and Sahel African states is also quite significant. For the period under review, Notore sold all the urea that it produced in both domestic and international fertilizer market,” Okoloko added.

“The TAM programme, once completed at the end of the Q4 2020 as anticipated, is expected to improve significantly the plant’s reliability and production output to meet and sustain its 500,000 mt per annum designs nameplate capacity. Achieving this level of production output will not only lead to significant improvements in the group and Company cash flows from operations, but also significant increases in revenues annually, thereby returning the Company to profitability post the TAM programme.”

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