Okomu Oil Projects ₦1.99 Billion Profit After Tax for Q3 2025 Amid Cost Pressures and Cash Flow Strain

Okomu Oil Palm Company Plc has projected a profit after tax of ₦1.99 billion for the third quarter of 2025, supported by a turnover of ₦23.02 billion.

The company’s forecast, signed by Chief Accountant Felix Odighizuwa (FCA) and Managing Director Dr. Graham Hefer, reflects stable operating performance amid high input costs and a challenging macroeconomic environment.

Total expenses, which include cost of sales as well as selling, general, and administrative expenses, are forecast at ₦20.45 billion, resulting in a profit before tax of ₦2.57 billion. No adjustments for extraordinary or exceptional items are anticipated during the quarter. The company expects to pay ₦578 million in taxes, leading to a net profit of ₦1.99 billion.

Despite solid operating earnings, Okomu Oil’s liquidity position is projected to tighten due to heavy investment spending. The company anticipates ₦1.76 billion in net cash from operating activities, but this will be offset by ₦4.69 billion in investment-related outflows and ₦653 million in financing costs. The result is a forecast net cash decrease of ₦1.59 billion, reducing the company’s bank balance from ₦2.09 billion to ₦504 million by the end of the quarter.

Financial Snapshot: Q3 2025 Forecast (₦ ‘000)

Metric

Amount (₦’000)

 

Turnover

23,024,865

 

Total Expenses

20,451,200

 

Profit Before Tax

2,573,665

 

Exceptional/Extraordinary Adjustments

Nil

 

Profit Before Tax (Post-Adjustment)

2,573,665

 

Taxation

578,103

 

Profit After Tax

1,995,562

 

Cash Flow from Operating Activities

1,778,103

 

Working Capital Changes

-18,333

 

Net Cash from Operating Activities

1,759,770

 

Cash Flow from Financing Activities

-653,260

 

Cash Flow from Investing Activities

-4,690,135

 

Net Cash Movement

-1,588,063

 

Opening Bank Balance

2,092,585

 

Closing Bank Balance

504,522

 

Outlook

 

Okomu Oil’s ability to maintain profitability in Q3 2025 demonstrates operational resilience, particularly in a high-cost environment. However, sustained investment outflows and reduced cash buffers highlight the need for careful liquidity management in the months ahead.

 

Meta Description: Okomu Oil forecasts ₦1.99 billion in Q3 2025 profit after tax, driven by ₦23 billion in revenue. Despite strong operational earnings, cash flow pressures persist due to significant investment outflows

Tags: Okomu Oil, Q3 2025 forecast, Nigeria agriculture, palm oil industry, agro-industrial sector, company earnings, profit forecast, Nigerian Stock Exchange, cash flow, investment outflows, net profit, naira outlook, inflation impact, financial results, corporate finance Nigeria

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