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C & I Leasing in the news
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C&I LEASING SIGNS $50 MILLION CONTRACT WITH
SHELL
C&I Leasing Plc recently signed a five year
contract, with options, estimated at $50m with Shell
Petroleum Development Company Ltd, for the provision of
three new tug boats and two crew boats to support the
Shell’s crude oil export tanker operations in Bonny.
This is a reflection of the much talked about dividends of
the cabotage Act of 2003 and the Nigerian Content Act of
2010, as C&I Leasing is one of the first Nigerian companies
to win a contract of that nature in the maritime/oil and gas
sector. Mr. John Osi, Shell Logistics Manager speaking at
the ceremony, said that this was the first time that Shell
considered a Nigerian company for such a sensitive
operation. This is because the C&I Leasing boats will
support the export operations at Nigeria’s largest crude oil
export terminal in Bonny. He stated that the contract with
C&I Leasing was a further demonstration of Shell’s belief
and commitment to the local content programme of the
Nigerian government. Also speaking at the contract signing
ceremony, the Managing director of C&I Leasing Plc., Mr.
Emeka Ndu, commended Shell Petroleum for the gesture and
promised to provide the same world class service that Shell
expects from its present contractors.
C&I Leasing has over the years grown into a diversified
leasing and ancillary services group. They have maintained
leadership in leasing/ rental of vehicles with the operation
of the Hertz car rentals, a leading car rental company, and
Red cabs, a leading taxi company in Lagos. C&I Leasing,
through its subsidiary, C&I Motors ltd, is also the sole
distributor of Suzuki vehicles in Nigeria. The group also
provides specialized manpower to several sectors of the
economy, such as the oil and gas, telecommunications and
manufacturing, through its personnel outsourcing unit.
The management of C&I leasing have made a commitment to grow
their marine division and showcase professionalism from a
Nigerian company in a sector which has always been dominated
by multi-nationals.
Picture below shows executives of Shell & C&I Leasing Plc at
the signing ceremony.
C & I LEASING PLC GETS A3 FOR SHORT TERM BY
GLOBAL CREDIT RATING
C & I Leasing Plc recently got a long term rating
of triple B and short term rating of A3 from Global Credit
Rating
Company in their Nigerian Leasing Credit Report for
2008/2009. It also got a similar rating for the year ended
2007/2008.
The report shows that although competition has remained
intense due to lack of significant barrier to entry, C & I
leasing remains one of the strongest brands in the Nigerian
Leasing industry, quoting the company’s competitive
strengths to include; technical expertise, efficiency in
service delivery and financial flexibility.
Presently C & I Leasing is the only listed leasing company
on the Nigerian Stock exchange. The company is in the
process of repositioning its main business units in line
with its strategic focus on emerging opportunities in the
Telecommunications, Oil and Gas and automobile sectors. In
the light of this the company established an automobile
sales subsidiary company C & I Motors Ltd. (Authorized
distributors of Suzuki cars in Nigeria) in 2007 and has
recently signed a joint venture agreement with a player in
the oil Industry; Walter Smith Petroleum, the company is
also in the process of commencing a modern taxi services,
and recently it got a deal with the Enugu state government
to provide tracking and management support for Enugu state
taxi scheme known as Coal City Cabs. These initiatives are
expected to further boost the company’s competitive position
with the inclusion of Suzuki cars in the Coal City Cabs
scheme.
Following the public offer assisted growth of 235% in ’07;
shareholders’ funds grew by 10% to N1.8bn in ‘08, solely
through retained earnings. However, asset growth has seen
the capital/total assets ratio decline from 42% in ‘07 to
35% as at year-end ‘08. Plans are underway to raise
additional equity capital before ‘10. The report noted that
the company achieved a robust 104% growth in total operating
income in 2008, outperforming the year’s budget by 15%.
However, provisions on risk assets were increased to roughly
5% of total operating income on account of asset growth,
from almost nil in the previous year. Growth in NPBT was
further constrained by a higher than forecasted operating
expenditure. Although a 136% growth in NPBT was achieved,
this was 23% lower than budget. The cost ratio declined from
69% in ‘07 financial year to 59% in ‘08 financial year.
Overall, a 155% growth in NPAT was achieved, equating to a
27% compound annual growth rate over the past 5 years. Both
the ROaE and ROaA ratios rose from 12.6% and 4.3% in ‘07, to
19.9% and 7.6% in ‘08.
It also states that the Management of C & I Leasing has
forecasted a 61% growth in total operating income in ‘09.
Due to the reduction in the company’s investment in the
Niger Delta region (where operating leases are mainly
concentrated), rental and outsourcing are expected to
contribute 37% and 26% of the operating income respectively.
Finance leases are expected to contribute 23%, while a lower
14% contribution is expected from operating leases. Although
operating expenditure (including the bad debt charge) is
expected to increase by 30%, the cost ratio (excluding bad
debt charge) is expected to drop from the 59% in F08 to 52%
on account of robust income growth. Consequently, growth in
NPBT of 114% has been forecasted for ‘09.
The company’s wide array of leasing and ancillary services
is strategically focused on companies in the oil, gas and
telecommunication sectors. Assets leased include cars,
trucks, cranes, barges, vessels and other equipment. Other
services include capacity utilisation finance, logistic
support, trade finance and Outsourcing. In Nigeria, the
company operates through three branch offices strategically
located in Port Harcourt, Warri, Abuja and Enugu, with the
head office in Lagos. The company’s offshore presence is
currently limited to a 59% stake in Lease Afric in Ghana,
acquired in July ’07.
FINANCIAL CREDIBILITY SPEAKS FOR C & I LEASING PLC
C & I Leasing Plc recently accessed a US Eximbank
medium term loan guarantee facility of $2.9million for the
acquisition of oil and gas machinery, equipment and tools
from three US-based companies – Access Oil, Bilco Tools, and
Superior Manufacturing & Hydraulics. The facility was
facilitated by a Connecticut’s Webster Bank.
This development has made the company to stand out as the
first non bank Financial Institution to have direct access
to the US Eximbank funding without the usual guarantees from
any Nigerian bank. This is a follow-on to the earlier
facility in 2003 where C&I Leasing accessed the same
facility to import some cranes which were then leased to
Nigerian Agip Oil Company.
Eximbank is an independent U.S. government agency that helps
finance the export of U.S. goods and services primarily to
emerging markets throughout the world by providing loan
guarantees and export credit insurance.
Speaking on this milestone achievement, the Executive
Director Business Development of C & I Leasing Plc, Mr.
Andrew Otike-Odibi, said the tools acquired, in conjunction
with Orwell International (Oil & Gas) Nigeria Limited, are
to be used in servicing the Oil & Gas sub-sector in the
casing and tubing rentals.
Mr. Otike-Odibi said that C & I Leasing is working with
Orwell International because of its track record in the
Nigerian oil sector as an innovative and reliable service
provider. He explained that C&I Leasing plc believes that
this landmark transaction is a demonstration of the ability
of the indigenous companies’ capacity to function
effectively in the oil and gas sub-sector if provided with
the right financial enablement to meet the local content
aspirations of the Federal Government. Mr. Otike-Odibi said
the facility which will go a long way in strengthening the
presence of the company in the Oil & Gas is one of
management’s action plan to up the company’s activities and
operations in that sector.
C & I LEASING PLC INCREASES PROFIT
BY 180%
C & I Leasing Plc has grown its profit after tax by over 180
percent in 2008 financial year. During the year under
review, the company posted a turnover of N2.4 billion, up
from N1.6 billion it posted in 2007.
The company whose businesses include Finance and Operating
Leases, Outsourcing, Car Sales and Distribution and other
ancillary logistics support services, recorded a profit
after tax of N375 million in 2008 as against the N134
million recorded in 2007.
Speaking at the 17th AGM of the company held recently in
Lagos, the Chairman of the company Air Vice Marshal
Abdullahi Bello (rtd), attributed the rise in asset and
increase in revenue to the impact of consolidation of the
account of Leaseafric, its subsidiary in Ghana, and the
significant earnings from leasing, outsourcing, and rental
services among others that constitute some of the strategies
that improve the revenue.
Meanwhile, shareholders of the company had approved a
dividend of N96 million that translated to six kobo per
ordinary share of fifty kobo, having approved a similar
amount earlier in the year.
C & I GROWS PROFIT AFTER TAX BY 53% IN 2ND QUARTER
2008
C & I has within the second quarter of this year
which ended July 31, increased its profit after tax by 53
percent from N177 million in 2007 to N270 million in 2008.
Another impressive result recorded within the period under
review was 100 percent turnover from N1.1 billion in 2007 to
N2.2 billion this year.
An analysis of the group presented at a forum held in Lagos,
the Finance Controller Mr. Ayo Taire, showed that C & I
Motors recorded 19 percent, Leasafric; seven, WAP; one
percent, while C & I Leasing recorded 73 percent of the
turnover.
According to the Group MD of C & I Leasing, the company
outlook shows increasing awareness of its Suzuki brand which
is translating into continuous growth in sales, while it has
received a licence from the state government to operate a
taxi service in the state which has given birth to another
subsidiary of the company known as Citrans Global; operators
of Red Cab.
SUZUKI GETS SON’S RATING
The Standard Organization of Nigeria recently
conducted an examination of facilities at the premises of C
& I Motors, Distributors of Suzuki auto brand in Nigeria, to
enable it conclude certification of its product.
Head of the SON team, Engr. Williams Okpeh expressed
satisfaction at the company’s facilities on ground after the
audit exercise performed by some technical staff of the
regulatory agency covering areas such as aftersales,
technical and manpower development.
He said among all other companies already inspected, C & I
Motors offers the best sales capabilities with most
qualified technical staff. “They have the most modern and
most sophisticated diagnostic equipment” he adds.
Receiving the team, the Managing Director of C & I motors,
Mr. Godfrey Ugwuegbu said that Suzuki SX4 model had recorded
a major breakthrough in performance by running 30,000 kms in
two months, a performance other cars do in two years.
He also informed SON that the Jimny model was used by Newton
Jibunoh to cross the Sahara Desert to Europe.
C & I MOTORS FORMALLY INTRODUCES SUZUKI ALTO
C & I Motors, authorized distributors of Suzuki cars in
Nigeria has launched the new Suzuki Alto, a mini vehicle
with best in class features.
Following this and in a bid to empower the masses, C & I
Motors is partnering with MCB Micro Finance Bank to provide
affordable cars to taxi operators in Lagos State.
The partnership tagged; taxi initiative project, is coming
on the heels of the official launch of the new Suzuki Alto
which is the ideal car for taxi operations in Lagos state
given the fact that it is fuel efficient, and others who
want to ride on a budget car with state of the art features.
The Alto is a super compact car that has won great
popularity having stood the test of time as a result of its
rugged nature.
Distributorship
C & I Motors, a renowned auto dealer and subsidiary of C & I
Leasing Plc has signed a distributorship agreement with
Suzuki Corporation of Japan.
According to this agreement C& I Motors has become the
distributor of Suzuki cars in Nigeria and C & I is the only
leasing company quoted on the Nigeria stock exchange list.
The representative of the auto manufacturers were Mr. Emeka
Ndu, the Managing Director of C& I Leasing Plc signed on
behalf of C & I Motors. Speaking after the signing, the
managing director of C & I Motors Ltd Mr. Godfrey Ugwuebu
said the discussions had been going on for over a year. He
expressed his gratitude, that the distributorship has been
signed.
Source ThisDay
Date 21/10/07
C & I enters deal with Suzuki
C & I Motors, a subsidiary of C & I Leasing Plc has signed a
distributorship agreement with Suzuki Corporation of Japan.
Addressing journalists in Lagos, Managing Director of C &I
Motors, Mr. Godfrey Ugwuegbu said his company decided to go
for Suzuki products because of its durability and easy
maintenance. His words, “Suzuki products are extremely well
built with low cost maintenance”.
He said the products will be affordable to an average
Nigerian when they finally arrive while spare parts will be
produced in large quantities with adequate man power. We are
producing the spare parts in large quantity with enduring
brand and enduring technological features, we are committed
to maintaining Suzuki global stand and we shall get adequate
man power, spare parts before we open, we shall give our
customers the assurance that any car
they buy would be maintained without stress” he said.
However he said distribution will not start until adequate
spare parts are available in the country as his company has
commenced development of an ultra modern sales service and
spare parts location in Ilupeju while efforts are on to
establish another one in the Lagos area.
Responding, representative of Suzuki Company in Japan, Mr.
Daishi Mochizuia said the products are fully tropicalised
and built to serve Nigerian roads. “It took us a while to
arrive where we are; we have really taken our time to
consider Nigerian roads, the atmosphere as well as fuel
capacity before bringing our products to Nigeria.
There is going to be a free hitch drive through these cars.
“They are not too expensive or difficult to maintain” he
said.
Also contributing, Mr. Emeka Ndu, Managing director of C & I
Leasing said his company is committed to the long term
partnering with Suzuki products. He said the decision did
not come overnight as he believes Suzuki cars are coming to
Nigerian markets when there is high demand for new cars.
“These are quality cars that are cost friendly for the
benefit of an average Nigerian” he said.
SOURCE VANGUARD
DATE 23/10/07
C & I Motors Suzuki Distributor
C & I Motors, a subsidiary of C & I Leasing Plc has signed a
distributorship agreement with Suzuki Corporation of Japan.
With this agreement C & I Motors has become the distributor
of Suzuki cars in Nigeria.
On the Suzuki team were Mr. Daishi Mochizuki from Motors
Corporation, Japan and Mr. Rajeev Agarwal from Maruti Suzuki
India Ltd. Mr. Emeka Ndu the Managing Director of C & I
Motors. Speaking after the signing, the Managing Director of
C& I Ltd, Mr. Godfrey Ugwuegbu, said the discussions had
been going on for over a year. He expressed
joy and gratitude to God that the distributorship agreement
has been signed.
Mr. Ugwuegbu stated that following from this appointment,
his company has commenced the development of an ultra-modern
3- S (Sales, Service and Spares) location in Ilupeju. This
is a reflection of the commitment of C & I Motors to
providing excellent after-sales services for the full Suzuki
product range in Nigeria. In addition to the Ilupeju outlet,
efforts are already in place to establish additional 3-S
locations in the Lagos area. It is expected that the
Showroom and official launch of the Suzuki Products will
take place early next year.
Source Mirror
Date 27/10/07
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