Notore Chemical Ind — Notore Chemical Industries — H1 2019 Earnings Presentation
21 slides from Notore Chemical Ind's earnings presentation, May 2019
Slide 1: Notore Chemical Industries Plc Investor & Analyst Presentation
Notore Chemical Industries Plc Investor & Analyst Presentation Half-Year ended March 2019 May 2019 Champion of the African Green Revolution
Slide 2: Outline
Outline Page # 1 Operating Environment 3 2 Key Performance Highlights 6 3 Corporate Strategy & Outlook 11 A Appendix 17 2
Slide 3: 1. Operating Environment
1. Operating Environment
Slide 4: Global market demand for fertilizer
Global market demand for fertilizer § The agriculture sector remains key to providing food security to the over 7bn people across the globe - Total fertilizer nutrient demand was estimated at 184.02million tonnes in 2015 and is estimated to grow at 1.9% per annum between 2015 and 2020, to reach an e
Slide 5: Local market demand for fertilizer
Local market demand for fertilizer § Agriculture accounts for 20% of Fertilizer usage across Nigeria Fertilizer Demand in Nigeria (3) Nigeria’s GDP and statistics shows how Proportion of plots using some fertilizer Metric Tonnes (millions) far the sector has declined over the last Key Statistics 50
Slide 6: 2. Key Performance Highlights
2. Key Performance Highlights
Slide 7: Key themes impacting our business
Key themes impacting our business 1 Operations – Plant Reliability § Our plant achieved a capacity utilization of 49% of its production design capacity, 1500MTPD, during the 6 Month period under review, averaging 734MTPD § The Turn-around Maintenance (“TAM”) program of the plant which will restore i
Slide 8: Key performance indicators review
Key performance indicators review 6M March 2019 6M March 2018 121,915 MT Urea 145,191 MT Urea 15.17 Sold -16 % Sold decrease 12.69 7.56 4.63 4.69 3.05 3.76 0.67 Revenues (N'b) Gross profit (N'b) Operating Profit (N'b) EBITDA (N'b) PBT (N'b) -1.94 Change -4.47 +/- -16.37% -19.01% 587.6% 61.28% Notes:
Slide 9: 6M 2019 FY Income Statement
6M 2019 FY Income Statement Financial Year October 2018 – March 2019 October 2017 – March 2018 Period 6 Months 6 Months Production Figures – 6 Month Design Capacity 250,000 MT 250,000 MT Urea Produced 122,150 MT 142,952 MT Urea Sold 121,915 MT 145,191 MT Income Statement Naira’million Naira’million
Slide 10: Balance sheet as at end March 2019 and end September 2018
Balance sheet as at end March 2019 and end September 2018 Financial Year March 2019 September 2018 Period Naira’millions Naira’millions Non Current Assets 142,099 140,212 Current Assets 16,495 12,626 Total Assets 158,594 152,838 Non Current Liabilities 79,657 83,020 Current Liabilities 32,170 21,110
Slide 11: 3. Corporate Strategy & Outlook
3. Corporate Strategy & Outlook
Slide 12: Driving strategy through IRIODE theme
Driving strategy through IRIODE theme Increase capacity Reduce cost 2019: 2000MTPD NPK 1. Secure best financing terms 2. Procurement efficiencies 2023: 2645MTPD Urea 3. Tax efficiency through Free 2023: 5000MTPD Methanol Zone Status 4. Economies of scale Increase efficiency Occupy the domestic space
Slide 13: Strengthening our agricultural extension services network
Strengthening our agricultural extension services network Possible Solutions to Increasing Africa’s Self Sufficiency in Food Africa’s estimated annual food import bill was $35 1 2 3 billion in 2017 and it is Educating Farmers Provision of Quality Creating Markets expected to rise to $110 on Best far
Slide 14: Value creation and revenue diversification
Value creation and revenue diversification H1 2019 H2 2019 H1 2020 H2 2020 FY FY FY FY October September 2018 2020 Diversification of 2000 MTPD NPK Attain 1500MTPD urea Optimization of the Revenue from Urea Blending Plant Production Free Zone Status § Finalised activities on § Commission the § Concl
Slide 15: Projected financial outlook post TAM
Projected financial outlook post TAM Year FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Period 12 Months 12 Months 15 Months 12 Months 12 Months 12 Months Production Figures Ammonia (MTPA) 258,660 323,400 323,400 323,400 323,400 323,400 Urea (MTPA) 421,200 495,000 495,000 495,000 495,000 495,000 I
Slide 16: Fertilizer market outlook
Fertilizer market outlook § Nigeria has about 34 million hectares of arable land (FAO, 2017) requiring a minimum of 7 million MT of NPK & urea fertilisers annually § Nigeria’s fertilizer consumption per hectare is approximately about 5.5kg compared to the FAO global recommendation of 200kg, confirmi
Slide 17: A. Appendix
A. Appendix
Slide 18: Snapshot of Nigerian agricultural space and opportunities
Snapshot of Nigerian agricultural space and opportunities Agricultural land Tree-crop land Arable land 76.2million ha 2.9million ha 34million ha (42% harvested) Irrigated land Cassava & tuber Land Land cultivated for cereal 7.2million ha 14.3 million ha 259,000 ha Sources: FAO; world bank developmen
Slide 19: Nigerian apparent fertilizer consumption 2013 - 2017
Nigerian apparent fertilizer consumption 2013 - 2017 The table below provides information on the apparent consumption of fertilizer in Nigeria between 2013 – 2017, according to AfricaFertilizer.Org: Fertilizer 2013 2014 2015 2016 2017 Urea 765,731 423,966 319,656 386,383 760,734 NPK 270,919 344,879
Slide 20: Industrialization through gas
Industrialization through gas One of the key objectives of Train II is the stimulation of the gas sector in the Niger-Delta through utilization of some of the abundant gas within the region that is untapped Flared Gas in the Niger- Monetizing gas Value added Products Delta that would have Urea and M
Slide 21: Contact Details
Contact Details Seyi Odeinde Head, Investors Relations Phone: +234 908 741 8746 Email: [email protected] Thank You 21
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