Chemical and agro-allied company, Notore Chemical Industries Plc, said it recorded N4.1bn revenue in the first quarter of 2023, which ended March 31, despite gas supply shortage.
This was disclosed in the firm’s unaudited interim financial statements for the first quarter.
In a statement, the Group Managing Director/ Chief Executive Officer, Ohis Ohiwerei, said the group’s production was impacted by gas supply limitations, while finance cost was affected by an increase in the foreign exchange rate and the increasing cost of funds driven by the Monetary Policy Committee rate changes.
However, Ohiwerei expressed confidence that there would be growth in the fertiliser market in Nigeria with Mordor Intelligence predicting a 4.4 per cent growth between 2021 to 2026
He said, “The company’s financial performance was impacted by the shortage of natural gas, a feedstock to produce urea fertilizer, during the period under review resulting in a decrease in production volumes.
“The shortage of natural gas significantly impacted our production capacity, thereby limiting our production output. We are working closely with our suppliers to find a solution to the gas shortage and are exploring alternative sources to ensure improved production output.”
Noting the challenging but promising operational environment, he said Notore was committed to providing premium agricultural inputs to its customers.
He added, “Though the limited gas supply impacted its first-quarter earnings, the company is addressing the issue to ensure a steady natural gas supply. As a result, it is confident that it will return to profitability in the coming quarters.”
On the outlook for the industry, he said the agricultural sector accounted for approximately 24 per cent of Nigeria’s GDP, and one of the most crucial components of the sector was fertiliser, which was required to boost food production and growth.