ANNUAL PROPERTY, PLANT AND EQUIPMENT ACQUISITION ON EARNING PER SHARE OF LISTED OIL AND GAS FIRMS IN NIGERIA

Abstract

It is observed that corporate entities spend funds on Plant, Property Equipment (PPE); and acquisition and maintenance each financial year, even in low profit, or loss situations. The study on non-current assets management and financial performance of listed oil and gas firms in Nigerian Stock Exchange (NSE) was conducted to investigate the influence of annual PPE acquisition on financial performance, measured using earnings per share (EPS) The study adopted descriptive design and used annual PPE acquisition cost to total PPE ratio as proxies of the independent variable. Oil and gas firms listed on NSE constituted the population of the study. The purposive sampling technique was employed to select 3 firms. Sample selection was based on the availability of data needed for the study. The study found that annual PPE acquisition cost to total PPE ratio has low positive effect on EPS. The study thus recommends that strategic managers should evaluate the PPE acquisition costs annually in the light of the total PPE value it holds. The study contributes to scholarship as it draws attention to these ratios in PPE decision making which was not sighted in extant literatures.