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.