Nigeria’s leading palm oil producers, Presco Plc and Okomu Oil Palm Company, are projected to post stronger third-quarter earnings as global palm oil prices continue their upward rally, boosting revenues across the agro-industrial sector.
Market analysts say the price surge driven by supply shortages in key producing countries like Malaysia and Indonesia, coupled with rising global food demand is expected to significantly enhance the profit margins of both companies.
Presco and Okomu, which dominate Nigeria’s domestic palm oil market, have benefited from higher product pricing and sustained demand from the food and manufacturing industries. According to traders, the average price of crude palm oil rose by nearly 15% in the third quarter, creating favorable conditions for local producers.
“With the international market tightening, Nigerian palm oil firms are well-positioned to capitalize on higher prices and reduced import competition,” said Emeka Nwosu, an equity analyst at Chapel Hill Denham.
Investors are optimistic that the companies will report impressive Q3 financials, particularly as both firms have been expanding plantation capacity and optimizing production efficiency.
Presco recently commissioned new milling facilities to boost output, while Okomu has focused on value addition through refined palm oil and by-products. Both companies are also benefiting from government policies promoting self-sufficiency in agricultural commodities.
The palm oil rally has also spurred renewed interest in the Nigerian Stock Exchange’s agric sector, where Presco and Okomu remain strong performers. Analysts predict that sustained price stability and strategic expansion could see both firms maintain solid growth into 2026.
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