Total share is a hold

TOTAL Ghana Limited (TOTAL) recorded a marginal dip of 9.08% in its bottom line for the HY-2017 period. The listed Oil Marketing Company (OMC) continues to face stiff competition from a sector within the Oil industry that has about 88 active participants with GOIL currently owning the largest market share of 18%.

TOTAL recorded revenue growth of 4.56% with the first six months of 2017. Revenue increased from GHS 854,135,000 in HY-2016 to GHS 893,114,000 in HY-2017. High costs of sales as a result of fluctuations in US Dollar currency rates and additional overhead costs in transportation and importation/delivery of fuel and its related products resulted in cost of sales rising marginally by 4.64% over the period under review to GHS 806,710,000. Additional costs incurred in the form of general, administrative and selling expenses (which rose by 10.17% over the period compared to same period prior year) resulted in Earnings before Interest and Tax (EBITA) going down by 4.43%. Profit after Tax figure consequentially went down by 9.08%; from GHS 20,753,000 in HY-2016 to GHS 18,868,000 in HY-2017. Earnings per share (EPS) fell from GHS 0.1855 in HY-2016 to GHS 0.1687 in HY-2017.

Total Asset Value of the company however rose by 10.02% to GHS 540,774,000 at the end of the period under review. Return of Assets [ROA] fell from 4.22% in HY-2016 to 3.49% in HY-2017; further confirming the inability of the company managers to efficiently utilize TOTAL assets to generate maximum returns for stakeholders. New fuel product [i.e. TOTAL Excellium] has also failed to significantly impact total turnover of the company in the first six months of the year 2017.

The YTD capital gains on UNIL 12.12%. The share performance has not been as impressive as GOIL on the bourse. GN Analysts estimate that the marginal dip in company profits will mildly affect short term outlook on the stock’s performance. The share price could dip marginally in the short term with any rebound depending on quarterly earnings performance of the company. TOTAL will however under perform this compared to GOIL which has been on an upward trajectory since 2017 year open. TOTAL shares are a HOLD.

Trading activity on the bourse ended with 4 gainers [BOPP, ALW, GOIL and SCB] and 2 losers [HFC and SIC] yesterday. CAL topped the trading chart in terms of volume as 2,653,600 shares worth GHS 2,418,396.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 34.14% and 35.17% respectively.

On the Ghana Alternative Market (GAX)

Trading activity on the Alternative Market was hushed yesterday as no shares changed hands.

HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.

On the Currency market

The Cedi LOST marginally to the USD and the British Pound but GAINED to the EURO on the inter-bank market yesterday. The local currency exchanged at a mid-rate of GHS 4.3848 to the USD, GHS 5.6399 to the GBP and GHS 5.1316 to the EURO.

The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 8.43%.