Mobil Oil Nigeria Plc, PZ Industries Plc, Forte Oil Plc and 87 other companies quoted on the Daily Official List of the Nigerian Stock Exchange have defaulted on the mandatory disclosure of their financial status to the Exchange.

The affected companies, according to an X-Compliance report posted on the NSE website, had missed the deadlines to file their financial statements, thus defaulting on the minimum listing standards in terms of timely disclosure.

Mobil Oil and MRS Oil Plc, both quoted in the oil and gas sub-sector have refused to render their results for the first quarter ended March 2011, while Forte Oil Plc and Oando Plc also listed in the same sector have defaulted on the rendition of their accounts for the second quarter ended June 2011.

The report from the Exchange noted that PZ Industries, quoted in the consumer goods sub-sector had defaulted on the rendition of its result for the second quarter ended November 2011, while Ecobank Transnational Incorporated Plc had yet to present its result for the second quarter ended June 2011 to the NSE.

Other defaulters, according to the notice by the Exchange, include Daar Communications Plc, MTI Plc; Universal Insurance Company Plc; Union Homes Real Estate Plc; Skye Shelter Fund Plc and Afroil Plc, which have not rendered their results for the first, second and third quarters of 2011.

The NSE said, “The Exchange has identified the companies as those that have not met the minimum listing standards in terms of timely disclosure of their quarterly financial performance and are thus operating below the listing standards of the Exchange.

“The sanctions for the non-compliance with periodic financial disclosure obligations are clearly spelt out in Appendix 111 of the Listing Rules and the Exchange will protect the integrity of its Rules.”

The NSE statement also noted that five quoted companies, Tourist Company of Nigeria Plc, NPF Microfinance Bank Plc, Dangote Cement Plc, Studio Press Plc and Union Bank of Nigeria Plc; were currently flouting the Exchange’s requirement for minimum free float.

The companies were identified by the NSE as having free float deficiencies, failing to meet the requirement of 20 per cent for companies on the Main Board of the Exchange.

According to the report, Tourist Company of Nigeria is recording a 1.31 per cent deficiency, NPF Microfinance Bank — 14.68 per cent, Dangote Cement — 5.11 per cent, Studio Press Plc — 8.46 per cent and Union Bank — 14 per cent deficiency.

The NSE, however, said that the companies had applied for waivers from its Quotations Committee and specifically provided compliance plans with tentative timelines to support their requests.

It said, “Companies listed on the Exchange must maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities.

“The free float requirement for companies on the Main Board is 20 per cent and 15 per cent for Alternative Securities Market, ASEM, companies.

Source: Punch ( written by Udeme Ekwere)