More companies in the country continue to post very disappointing third quarter 2015 result.

This is against the backdrop of uncertainty of the economic direction as well as the drop in the major revenue earner,  crude oil prices.

Third quarter 2015 financial profile of major companies trickling in shows either huge loss in gross earning and profit margins or exhibited negative earnings in all ramifications.

The Nigerian economy has been badly affected by the drop in oil revenue as the price of crude continues to dwindle, hovering between $40 and $50 dollars per barrel from the lofty height of $120 dollars per barrel in June, last year.

Another problem bedeviling the companies operating in Nigeria is the insurgency in the Northern part of Nigeria which has affected the growth of these companies in term of limiting their marketing spread to the hinterland.

Of course, the regulatory authority allows the interest rate to soar above 28% while banks’ deposit rate dips less than 3%, which has also affected the buying capacity of their customers and other stakeholders.

Therefore, as most of these companies grapple with these macro-economic challenges, which is compounded by lack of government economic direction in the last two quarters of 2015, it has created grave anxiety in the business environment generally.

As the operating environment becomes tougher and more volatile, it has serious negative impact on these companies which are on the receiving end.

For instance, Oando Plc, an oil sector major, recently churned out a very disappointing third quarter result 2015 which dampened investors’ confidence in the management and the stock of the company as negative sentiments persists to drop the stock price below N7.00 per share.

Total Nigeria Plc was not left out in the dwindling fortunes as it revenue dropped by -10.41% to N159.299 billion from N177.807 billion in the third quarter last year.

Similarly, profit after tax slumped by -19.47% to N2.133 billion from N2.649 billion.

It went ahead to proposed an interim dividend of N2.00 per share to its shareholders and closure is 3rd December, 2015.

Other companies with poor third quarter 2015 result are Stanbic IBTC Holdings, Julius Berger Plc, Glaxosmithkline Plc, Seplat Oil, Ashaka Cement, Morison Industries Plc, Unilever Nigeria Plc, Mutual Benefit Assurance, PZ Cussons, BOC Gases Plc, CWG Plc, Eterna Oil & Gas, UAC- Property Development company, Livestock Feeds, Learn Africa, International Breweries Plc, A.G. Leventis, ABC Transport Plc, Wapic Insurance, Red Star Express, SCOA Plc, Honeywell Flour Mills, FBN Holdings, Wema Bank, Diamond bank to mention but a few. See table below.

The third quarter 2015 of UAC- property Development company Plc illustrated above, shows that its turnover dropped drastically from N8.233 billion in the preceding year to N4.307 billion in this third quarter which translates to a decrease of -47.69%.

Its profit before tax slumped from N760.598 million previously to loss (N2.192 billion), a decrease of -388.23%.

Similarly, its profit after tax also dipped to loss of (N2.192 billion) from N425.442 million previously, a decrease of -615.29.

With this trend, it might not be able to make profit at the fourth quarter and therefore no dividend to shareholders, a situation that portend serious challenges to the company.

Analysts fear that if nothing is done to fix the economy, the ugly trend in the third quarter might spill-over to the last quarter and most of these companies will not be able to make return on investment to its shareholders at year end.

The challenge may worsen for the companies and the economy at large.

A stockbroker, T.J Olayinka said the poor result was a direct reflection of the state of our economy, which is presently, does not have a direction.

The events of the last one year as it affects the companies are what are reflected in their 2015 third quarter result.

From the slide in global crude oil prices, to devaluation of the currency, and the hostile economic environment, all constituted to impact negatively on the performance of these companies.

These unimpressive third quarter results have adversely affected the stock price of these companies and to some astute investors it presented a buying opportunity while shareholders confidence is waning on the stock market generally. They felt that a stock market that is supposed to create wealth is now a drain-pipe.