Five companies listed on the Nigerian Exchange (NGX) are set to record a combined profit after tax of N54.77 billion for the second quarter ending June 30, 2025, based on their financial forecasts.
An analysis of their earnings projections indicates that the companies expect strong performance across various sectors, including banking, insurance, energy, and mortgage finance.
Earnings Breakdown
One of the leading financial institutions forecasts the highest profit, driven by interest income of N209.12 billion and foreign exchange gains of N3.71 billion. The company's net operating income is expected to reach N131.46 billion, while operating expenses are projected at N80.54 billion.
In the insurance sector, a key industry player expects to generate N86.78 billion in insurance revenue, supplemented by net investment and other income of N10.13 billion. The company projects a pre-tax profit of N9.13 billion, with tax obligations amounting to N1.36 billion.
Read also
Within the power sector, a major electricity generation company anticipates revenue of N53.14 billion, with a cost of sales of N32.56 billion. Operating profit is expected to stand at N13.88 billion, while net finance costs amount to N963.24 million. After tax expenses of N4.26 billion, the company projects a net profit of N8.65 billion.
Meanwhile, an energy marketing firm expects N191.61 billion in revenue, with a gross profit of N25.67 billion. After deducting administrative and finance costs, the company forecasts a pre-tax profit of N2.13 billion, with a net profit of N1.41 billion.
In the mortgage banking sector, one institution anticipates gross earnings of N3.02 billion, with N2.99 billion coming from interest income. Its net operating income is projected at N996.33 million, while pre-tax profit is forecasted at N314.97 million. After accounting for tax obligations of N23.24 million, the expected net profit stands at N291.72 million.
Economic Implications
These projections reflect a positive outlook for the Nigerian economy, as the expected profits signal stability and growth across multiple industries. The strong performance of these companies could attract more investment into the stock market, boost shareholder confidence, and contribute to economic expansion.
With Nigeria's financial and energy sectors playing crucial roles in the nation's economic development, the projected earnings further highlight the resilience of key industries despite prevailing economic challenges.
No comments:
Post a Comment