OKOMU OIL PALM PLC - Earnings remain strong despite seasonal slowdown

Similar to recent earnings from listed peer, OKOMUOIL’s 9M’16 results came in strong with PBT up 100% y/y to ₦5.1 billion, 6% ahead of our estimate. As expected, Q3 revenue from the Oil Palm segment came off the Q2 record numbers (down 29% q/q to N2.7 billion) as seasonal effect weighed on volume; H2 is traditionally an off-peak period for Crude Palm Oil (CPO) production. When compared to the corresponding period of 2015 however (for better comparison), the 3-month Oil Palm revenue was up ...