A loss of 17 percent in 2018 meant Nigerian equities endured their worst year since 2009, yet some Chief Executive Officers (CEOs) led their companies through the gloom and put smiles on the faces of shareholders.
BusinessDay ranked the top-ten best performing CEOs based on the stock return of their companies, with Yusuf Binji leading the line.
Binji is the Managing Director and Chief Executive Officer of Cement Company of Northern Nigeria (CCNN) Plc, which emerged the best performing publicly-traded company.
CCNN, which opened the year at N9.50 per share, gained 104 percent to end the year at N19.40 per share. As a result, investors with holdings in the stock booked some N130.12 billion in capital appreciation.
CCNN could yet rise higher this year on the back of an expected surge in revenues likely to come from a merger with Kalambaina cement plant which takes its total installed capacity to two million metric tonnes per annum.
The increasing focus on infrastructure development in Nigeria is a boon for the cement sector, which expanded 8 percent in the third quarter of 2018, according to the NBS, the fastest pace since 2014.
The second best performing CEO is Oluwatomi Somefun of Unity bank.
The tier-2 lender recorded the largest increase among the banks following a 101.89 percent share price increase to N1.07 from 50 kobo, bringing shareholders’ return to N6.31 billion in 2018.
The company turned the corner in 2018 after a turbulent 2017 where it recorded a negative capital of N242.31 billion.
The turning point came after the bank sold N400billion of bad loans to Frontier Capital Alternative Asset Ltd which helped clean up its balance sheet. The sale led to a significant drop in its non-performing loans ratio to near zero from almost 50 percent in 2016.
Sterling Bank Plc’s, Abubakar Suleiman, ranked third after the lender recorded a 75.93 percent surge in market value under his watch.
The stock appreciated from an opening price of N1.08 per share to N1.90 per share at the last trading day of the year.
Its market capitalisation rose by N23.61 billion to hit N54.7 billion at the end of 2018.
Tope Smart, CEO of Nem Insurance, ranked fourth.
The insurer posted a 62.65 percent gain in 2018, pushing the market cap higher by N5.49 billion to N14.26 billion.
The stock had opened the year at N1.66 per share, but at the close of business on Friday, December 28, 2018, the share price hit N2.70 per share.
Salisu Hassan, MD and CEO of Learn Africa, rounds up the top five.
The stock of the educational publisher gained 54.55 percent to emerge the fifth-best performer at the NSE in 2018. The company’s market capitalisation rose by N370 million to reach N1.05 billion.
Olabode Makanjuola, the CEO of Caverton Offshore Support Group came sixth.
Caverton Offshore Support Group, provider of marine and aviation services to the oil and gas industry, garnered 48.84 percent.
In seventh place is Taiwo Adeniyi, CEO of Vitafoam.
The foam manufacturer’s stock climbed 46.67 percent in 2018. Market capitalisation which had opened the year at N3.13 billion rose to N4.59 billion on the last trading session of 2018.
Vitafoam shares gained 10 percent to N4.40 per share to close for the year after the consumer goods firm, which had consistently recorded losses in last two years, declared a profit of N601.93 million.
Uzoma Dozie of Diamond bank is in seventh place.
Tier two lender, Diamond Bank, jumped 45.33 percent in the review year, making market value to gain N15.75 billion to N50.49 billion.
The bank recently announced a planned merger with Access Bank, which is expected to produce Nigeria’s and Africa’s largest retail bank by customers.
In a cash and share deal worth N72 billion, Access valued Diamond bank shares at N3.13 each and the bank is quickly turned the corner after sliding to a year low of 65 kobo. Access’ valuation of Diamond sparked a rally, as the stock more than doubled from its year low in the space of one week.
Custodian Insurance’s Oluwole Oshin, who has now managed the company for three years since assuming the role in 2015, led the insurer to ninth spot. The stock appreciated 45.24 percent, increasing market capitalisation by N10.35 billion to N33.23 billion in the review year.
Andrew Otike-Odibi, the MD of C & I Leasing rounds up the top ten companies to deliver the most value for shareholders.
The stock of C & I Leasing Plc, a leasing and business service conglomerate, gained 37.98 percent, as market capitalisation increased by N922.58 million to N3.35 billion.
As part of the company’s resolve to invest in the growth and expansion of its business, the firm July 12, 2018 notified its shareholders of the buyout of 27.5 percent minority stake in C & I Petrotech Marine Limited after it recorded a successful N7 billion Bond issue, the first series in a N20 billion debt issuance programme. The issuance is aimed at expanding the company’s business and restructuring its debts over a period of five years.
LOLADE AKINMURELE & OLUWASEGUN OLAKOYENIKAN
