Okomu Oil has reported a 63 percent increase in revenues in the first quarter (Q1) of 2022 as Palm oil prices continue to rise on tight global supplies.
Okomu reported revenues of N20.485 billion for the period compared to N12.554 billion a year ago. Profit after tax for Q1, 2022 rose to N9.498 billion, up from N5.27 billion in 2021.
Indonesian President Joko Widodo in April announced the export ban of all cooking oil and palm oil products, aimed to ensure domestic markets had ample cooking oil supplies following a dramatic increase in prices.
The spot palm oil contract on the Bursa Malaysia Derivatives Exchange was trading around 7,385 ringgit ($1,689) a ton on Friday, up 14.2 percent from an all-time high of 6,466 ringgit some two months ago on February 23.
Palm oil is of strategic importance as it is used in the production of more than half of the products sold in supermarkets globally.
Nigeria remains the top palm oil producer in Africa based on the data by USDA.
However, despite Nigeria being the largest producer of palm oil in Africa, Cote D’ivoire remains the largest exporter of the commodity, with Nigeria settled at the sixth position on the list of palm oil exporting countries in Africa.
Okomu’s domestic sales for the period were equivalent to N18.875 billion and exports sales were N1.610 billion.
The Okomu Oil Palm Company PLC, was incorporated in December, 1979 as a Private Limited Liability Company.
It was converted to a Public Limited Liability Company (PLC) on September 19, 1997 under the Companies and Allied Matters Act, 1990. It is a member of Socfinal group of Luxemburg which owns 62.94% of the Company’s shares with Nigerians owning the balance of 37.06%.
The principal activities of the Company are the development of oil palm plantation, palm, oil milling, palm kernel processing and the development of rubber plantation.
The products are palm oil, palm kernel oil, palm kernels cake, banga (package) and rubber cup lumps.