IEI Suffers N828mn HY2016 Loss | Independent Newspapers Limited
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IEI Suffers N828mn HY2016 Loss

Posted: Sep 16, 2016 at 5:10 am   /   by   /   comments (0)


International Energy Insurance (IEI) Plc has reported N828.611 million losses after tax for the half-year ended June 30, 2016. The company in a filing with the Nigerian Stock Exchange (NSE) said it reported a loss of 828.611 million as against a loss of N78.566 million posted in 2015, accounting for a percentage change of 955.

Loss before tax equally stood at N828.611million for the second quarter, against a loss of N78.566 million reported a year earlier.

However, the group’s revenue dropped by 51 per cent from N2.611 billion in 2015 to N1.290 billion during the review period.

It would be recalled that the National Insurance Commission (NAICOM) recently directed the interim management of the International Energy Insurance to suspend the proposed sale of the company’s major equity stake in IEI Anchor Pensions Limited.

According to reports, the interim management had proposed to sell IEI’s investment in IEI Anchor Pensions Limited, citing the operational guideline of the NAICOM that prohibits investment of greater than 25 per cent of proceeds from a private placement or public offer in a non-insurance asset.

However, the Commission was said to have directed the interim management, which it appointed after sacking the previous management of IEI, to stand down the disposal process.

NAICOM had in 2015 intervened in the governance of IEI and appointed an interim management board (IMB) effective May 18, 2015.

The IMB is chaired by Mr. Muhammad Ahmad, founding director general of National Pension Commission (Pencom) and it included Ms. Daisy Ekineh and Mrs. Bridget Akintola The management of IEI confirmed the suspension of the divestment process.

IEI had struggled from one crisis to another and remained under the danger of compulsory delisting at the NSE. IEI’s share price has fallen to its nominal value of 50 kobo, underlining the steep decline since its share restructuring in 2013. In 2013, IEI had restructured its previous outstanding shares of 6.42 billion ordinary shares of 50 kobo each to 1.284 billion ordinary shares of 50 kobo each.

The post-consolidation shares were listed at N2.50 per share, making IEI the then highestpriced stock in the insurance sector.