Since 2023, Nigeria’s enterprise setting has been outlined by important challenges, together with excessive inflation, fluctuating rates of interest, and risky change charges.
Nevertheless, relative stability is starting to emerge in 2025, as mirrored within the Q1 and Q2 outcomes of firms.
Amidst this volatility, the palm oil sector has remained engaging to buyers, largely as a result of persistent hole between excessive demand and inadequate native provide.
Inside this area, two firms dominate Okomu Oil and Presco Plc.
Each have demonstrated resilience in navigating the financial headwinds, posting sturdy half-year 2025 performances.
But, as is commonly the case, variations exist in how every firm carried out.
Whereas Presco Plc leads in income, asset base, shareholders’ funds, profitability, and market capitalization, Okomu Oil stands out for its higher effectivity, decrease leverage, stronger return on fairness, and more healthy liquidity.
Presco Oil nonetheless sells probably the most oil
On the subject of promoting palm oil, Presco stays the large participant.
In 2024, it generated N208 billion from the sale of crude and refined merchandise, and in simply the primary half of 2025, it has already achieved over 95% of that determine, with income hitting N198 billion.
This far outpaces Okomu Oil, which recorded about N130 billion in income for a similar interval.
Collectively, each firms delivered a mixed income of N328.57 billion in H1 2025, representing a outstanding 102% year-on-year development. Of this complete, Presco accounted for 60.5%, whereas Okomu contributed 39.5%.
Their H1 2025 mixed income is already over 98% of their full-year 2024 determine, underscoring the sturdy development momentum within the sector.
Notably, whereas Presco led in income, Okomu Oil incurred greater direct prices relative to its gross sales, which weighed on its profitability on the gross degree.
Okomu reported a gross revenue margin of 66%, in comparison with Presco’s spectacular 87%.
This distinction highlights Presco’s stronger price effectivity and pricing energy, giving it a transparent edge by way of extracting worth from its gross sales.
That stated, even at 66%, Okomu’s margin stays very wholesome by business requirements, reinforcing the attractiveness of the palm oil enterprise mannequin.
Each firms function at ranges of profitability which are not often seen in different sectors of the Nigerian economic system, the place margins are usually squeezed by inflation, rising enter prices, and overseas change pressures.
In essence:
- Presco: Income chief + cost-efficient operator = stronger gross margin.
- Okomu Oil: Barely much less cost-efficient however nonetheless delivers wonderful margins.
Profitability
In absolute phrases, Presco as soon as once more led the pack, posting a pre-tax revenue of N112 billion in comparison with Okomu’s N67 billion. This reinforces Presco’s dominance in scale and earnings energy.
Nevertheless, when seen via the lens of development, Okomu Oil outperformed. Its pre-tax revenue surged by 129% year-on-year, barely forward of Presco’s 121% development charge.
Mixed, the 2 palm oil giants generated a outstanding N179 billion in pre-tax revenue for H1 2025, with Presco contributing 63% and Okomu 37%.
This dynamic means that whereas Presco stays the extra worthwhile firm in dimension, Okomu is rising sooner, narrowing the hole and signaling sturdy momentum in its operations.
Whereas Presco recorded greater income, Okomu Oil price of gross sales accounted for 63% of the mixed price of gross sales of N69.398 billion, whereas Presco accounted for 37% reaching N25.491 billion towards Okomu’s N42.907 billion in H1 2025.
Market Efficiency & Valuation
On the inventory market, each firms have been big winners this yr. Presco’s share value has jumped by 212% in 2025, lifting its market worth to about N1.48 trillion. Okomu Oil will not be far behind, with a 130% achieve and a market worth of N973 billion.
Now, let’s have a look at how the market values them:
- Buyers pay N11 for each N1 of Presco’s revenue, whereas they pay a bit extra N14 for Okomu’s revenue.
- On e-book worth (what the businesses are price on paper), Okomu trades at 12 instances, whereas Presco trades at 6.4 instances.
- On gross sales, Okomu once more appears extra “costly” at 5.3 instances gross sales, in comparison with Presco’s 4.6 instances.
- Dividend yields are nearly the identical: Okomu at 2.94% and Presco at 2.84%.
What This Means
The inventory market is telling a narrative:
- Presco is the large greater firm, cheaper to purchase into, and nonetheless rising quick.
- Okomu is the smaller premium play, however buyers are prepared to pay extra for every naira of its earnings and gross sales as a result of it’s extra environment friendly and delivers greater returns.
Who leads?
From the numbers, Presco clearly leads the sector in dimension and scale. It sells extra oil, generates extra income, posts greater absolute income, and instructions the biggest market capitalization. Its effectivity in managing prices additionally provides it stronger margins, making it the dominant pressure within the palm oil area.
Okomu Oil, alternatively, leads in effectivity and shareholder returns. It runs a leaner stability sheet with far much less debt, grows income sooner, and delivers greater returns on fairness. Buyers are prepared to pay a premium for Okomu due to this power, though it’s the smaller of the 2.