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Okomu Oil Palm Plc, the leading palm oil production company in Nigeria, reported today that its 2016 revenue rose markedly, owing to strong demand for palm oil products.

The company said revenue rose to N14.4 billion compared with N9.7 billion in the previous year. The revenue growth was driven mainly by 57 percent rise in sales of palm oil products. A significant increase in rubber export sales also supported in revenue in 2016.

Given the strong top-line growth, Okomu Oil said after-tax profit rose 84.6 percent to N4.9 billion as against N2.7 billion a year earlier. The growth in profit was, however, moderated by a sharp increase in finance costs due mainly to foreign exchange losses of N1 billion, arising from the impact of the weaker naira on the company’s foreign currency denominated loans.

Notwithstanding the growth revenue and profit, Okomu Oil’s earnings still underperformed analyst’s estimates, according to CardinalStone Partners, a Lagos-based investment advisory firm.

Okomu Oil said its cash and cash-equivalents at year end rose significantly to N3.2 billion from N905.5 million in 2015, as the company generated more cash from its operating activities. Basic earnings per share rose to N5.15 per share compared with N2.79 per share in 2015. The company has announced a final dividend of N1.50 per share.

Founded in 1976, Okomu Oil has the largest oil palm plantation in Nigeria. The company produces about 31,000 tonnes of oil palm and 8,000 tonnes of rubber annually. Okomu is controlled by Socfin, a Luxembourg-based company, which owns oil palm and rubber plantations in Cote D’Ivoire, Cameroon, Kenya, Liberia, Guinea, and Indonesia.