All Posts in "Business News"

Ethiopian Airlines, Bombardier Seal $63million Aircraft Deal

Ethiopian22

Ethiopian Airlines and Bombardier Commercial Aircraft have sealed a firm purchase agreement for two additional Q400 turboprop aircraft, that will bring the airline’s Q400 aircraft fleet to 19 aircraft.

The transaction is valued at approximately $63 million.

Group Chief Executive Officer, Ethiopian Airlines,Tewolde Gebremariam, said: “We are continuously working to have the right fleet with agility, optimal range, load and passenger comfort which is critical for us to keep our leadership position in the market.”

“The Q400 aircraft continues to be an integral part of our expansion strategy in Africa.Through our strategic partnerships with ASKY Airlines in Togo and Malawian Airlines in Malawi, the Q400 airliner has played a vital role in availing convenient connections, as well as increasing frequencies to support air travel growth in Africa and successfully create a missing link.”

”The Q400 aircraft is also our core fleet to our domestic and regional destinations, thereby ensuring excellent passenger experience, operational flexibility and economics. We continue to work with Bombardier to support and maintain the aircraft through our approved Q400 Authorised Service Facility and our Q400 aircraft simulator,”Gebremariam added.

Online Editor by — February 26, 2016 in Business News 0
Air Côte d’Ivoire, has announce plans to increase its fleet of seven aircraft to nine by April

Air-Cote-dIvoire

Air Côte d’Ivoire, has announce plans to increase its fleet of seven aircraft to nine by April 2016.
The African carrier stated this recently in Abidjan, Cote D’Ivoire when its received its third new Bombardier Dash Q400 NextGen aircraft, which increases its fleet to seven.
The airline also said that it hoped to increase the cities it flies into to 22 from its present 18 by 2016 and estimated a capital increment of 65 billion to over 100 billion FCFA before the end of next year.
The statement issued in Lagos by the media consultant to the airline quoted its Managing Director, Mr. Rene Decurey as saying that the airline was achieving its target with the delivery of Bombardier Dash Q400 Aircraft, which had enabled it increase regional and domestic routes and frequencies.

Decurey explained that its new aircraft was as fast as a jet, flexible, silent, comfortable and energy efficient, adding that it’s an idle aircraft that could operates both domestically and regionally.

Decurey emphasised that by 2018, the airline would have been profitable, but noted that to achieve this, new route must be opened and new planes must be acquired. With such growth and prospect, he said the airline has invested in training its own pilots and airplane mechanic with the partnership of INPHB and the Aeronautic institute Amaury of Grange (IAAG) and is currently training 15 pilots, and by 2018 would have 20 airplanes mechanics.

Online Editor by — February 26, 2016 in Business News 0
NAHCO Pledges Consistent Dividend Payment to Shareholders

NAHCO

The Chairman of Nigerian Aviation Handling Company,NAHCO, Suleiman Yahyah, has stated affirmatively that the company will continue to pay dividends to shareholders.

Yahyah, who spoke at the Closing Gong Sounding ceremony on the floor of the Nigerian Stock Exchange, NSE, in Lagos, said since the company was privatized and listed on the exchange in 2006, it has remained consistent with dividend payment.

He said: “I want to assure shareholders that this year will not be different. We will continue to declare healthy dividend in line with our consistent dividend strategy.”

According to him, since its privatization, the company has embarked on business diversification programme that cuts across industries and geography.

He said the company has developed strategic global alliances through its membership of aviance, the global alliance of 10 reputable airport service providers operating from 112 stations in 17 countries, and The International Air Cargo Association (TIACA), which exists to promote the air cargo industry and world trade.

Yahyah noted that from a single business company, NAHCO has grown into a diversified group that is not only in cargo and passengers handling, but is also into agriculture, free trade zone and energy.

He said:“We are ready to go on the investment in the free trade zone. The licence has been secured, the partnership with International Development Ireland,had been signed, management is in place and market is looking good.”

“We are also investing in our agric zone development ,which is part of free trade zone, a sub element of using our platforms in Lagos, Abuja, and Port Harcourt. Already 10 per cent of our earnings is coming from export.”

So we want to deepen it in view of the difficulty now in the forex market. So we will fast track that investment and hopefully, that should begin show in our performance by the end of 2016. Besides, we are also are moving to other African countries. We are licensed in Senegal and Cote d I’voire. Now is the time to make those investment decisions active.”

He disclosed that NAHCO invested over N10 billion in equipment, saying these equipment made the company to be about 150 per cent self-sufficiency.

He said the company has enough equipment and is ready for the new terminals that are coming Lagos, Port Harcourt, Kano and Abuja terminals.

“Our future remains to deepen our market presence, deepen our corporate governance culture and strengthen the board, which is stable and experienced and management to face the challenges in the economy. We also believe that our agric zone and free trade zone will provide continuous sustainability to the investors,” he said.

Online Editor by — February 26, 2016 in Business News 0
Indigenous Oil Companies Worst Hit By Oil Price Plunge

Nigerian independent oil companies  have been affected the most by the lingering plunge in oil prices, the Managing Director of Seplat Petroleum Development Company Plc, Austin Avuru has said.

Avuru spoke on Thursday, February 25, at the 13th Aret Adams Annual Lecture Series held in Lagos.

Speaking on this year’s lecture themed: ‘Low Oil Prices: Challenges and Opportunities,’ he said independent oil companies in the country were heavily impacted as they all borrowed to fund acquisitions and capital expenditure (capex) growth.

He said many independents are now cash negative and yet need more investments for production increase in order to survive, adding that the average price of $60 per barrel was required for most companies to survive this year.

“We need to embrace effective domestic utilisation of fossil fuels to survive, and because Nigeria is heavily dependent on oil to balance the economy, the drop in oil price was a huge blow to the country’s revenue,” Avuru said.

The Managing Director, Chevron Nigeria Limited, Clay Neff said Nigeria had the opportunity to improve its competitive position in the global oil and gas industry.

He noted that in this current situation, the country should restore investors confidence by providing competition in the oil market, adding that the security of lives and properties, and control stability and speedy approval processes should also be institutionalised.

The Chevron chief said the country should address its Joint Venture (JV) funding challenges and pay the arrears, adding that Nigeria had an attractive resource base.

Online Editor by — February 26, 2016 in Business News 0
Supply Glut: Nigeria’s Crude Languishes, Awaits Buyers

Red metal barrels against blue sky.

While Nigeria’s crude remains in ample supply, languishing as it waits buyers,  as Asian traders mop up Angola’s crude oil,

Nigeria’s Erha programme surfaced after weeks of delays that traders said related to a disagreement between state oil firm Nigerian National Petroleum Corporation (NNPC) and the field operator, Exxon-Mobil, Reuters reports.

Programmes for Erha were issued after several weeks of delay. Four cargoes will be loading in March and three in April, the programmes showed. NNPC also issued its official selling price for Erha in March at nine cents above dated Brent, up from a 17 cent discount in February. About 15 March-loading Nigerian crude cargoes are still available, traders said, and a force majeure on Forcados exports was doing little to boost differentials for most grades.

Bonny Light for April loading was offered at dated Brent plus $1.50 per barrel and Bonga at a $1 premium.

“NNPC is in discussions over long-term agreements to exchange crude oil for imported oil products, but fresh deals are unlikely to be finalised this week. The delays have put the country at risk of gasoline shortages,” it added.

According to the report, Sonangol only had an end-month Dalia for sale having already sold five spot cargoes including Sangos, Gimboa, Palanca and Dalia, while China’s Sinochem took six term cargoes under term agreements while Unipec took four.

It also revealed that Asian buyers snapped up spot cargoes but traders said US firm Phillips66 had also taken at least two April cargoes, including a Plutonio and a Hungo.

Total sold a spot cargo of Pazflor to Asia though the buyer was not immediately clear. Offers for other April loading cargoes were firming with Sonangol offering Dalia at dated Brent minus $3.20.

Online Editor by — February 26, 2016 in Business News 0