Okomu Oil Declares N26 Final Dividend

Okomu Oil Palm Company Plc has announced a final dividend of N26.00 per share for the financial year ended December 31, 2024, reinforcing its commitment to shareholder value creation.

The dividend is payable to shareholders listed in the company’s register as of the close of business on April 24, 2025, with payment scheduled for May 22, 2025, subject to regulatory approval and withholding tax.

This disclosure was made in a corporate filing with the Nigerian Exchange (NGX) on April 3, 2025, and signed by Mr. Chukwuebuka Omerole, the company’s secretary. The company noted that shareholders must have completed their e-dividend registration to qualify, as all payments will be processed via electronic bank transfers.

Dividend Breakdown and Market Impact

The N26.00 final dividend—equating to a total payout of N24.8 billion—comes on the heels of an earlier interim dividend of N10.00 per share, pushing the total dividend for FY 2024 to N36.00 per share. At a market price of N545.20, the final dividend alone delivers a yield of 4.77 percent, making it one of the more generous payouts among listed agricultural firms.

This dividend represents a 62.79 percent payout ratio, reflecting the company’s earnings strength and solid cash position. With a price-to-earnings (P/E) ratio of 14.92x, well below the industry average of 36.92x, the stock may present an undervalued opportunity for investors seeking exposure to Nigeria’s agro-industrial sector.

Robust Financial Performance

Okomu Oil delivered a 58.27 percent year-on-year rise in pre-tax profit, hitting N53.5 billion in FY 2024, compared to N33.8 billion in 2023. Revenue surged by 73.36 percent to N130.2 billion, driven primarily by the company’s palm oil operations, which contributed N107.5 billion. Rubber sales accounted for N22.5 billion, while palm oil processing added N149.6 million.

Retained earnings climbed from N36.8 billion to N53.9 billion, strengthening the company’s balance sheet and enabling generous dividend distributions.

Commenting on the performance, Mr. Gbenga Oyebode, Chairman of Okomu Oil said:“This exceptional performance was driven mainly by the sustained rise in the prices of our key products, with crude palm oil prices increasing approximately 35 percent year-on-year, alongside a remarkable 194 percent rise in rubber prices.”

He also highlighted the company’s dedication to shareholder returns, noting: “In recognition of our strong performance, the Board declared an interim dividend of N10.00 earlier in the year and has now recommended a final dividend of N26.00, bringing the total to N36.00 per share for 2024.”

Okomu Oil’s financial results and dividend policy signal strong fundamentals, prudent capital allocation, and resilient product demand. With continued growth in commodity prices and expanding production capacity, the company remains well-positioned for sustained profitability.

For income-focused investors, the combination of robust earnings growth and a healthy yield underscores Okomu Oil’s appeal in a market environment where defensive, cash-generating stocks are gaining renewed interest. Looking ahead, the company’s ability to capitalise on favourable market trends and maintain cost discipline will be pivotal in driving long-term shareholder value.