Ardova announces 71% increase in profit to N850m
By Kayode Tokede
Ardova Plc has released its unaudited interim consolidated financial statements for the period ended March 31, 2021 with 19.98per cent drop in revenue to N41.49 billion from N52.052 billion in Q1 2020.
However, profit after tax rose by 70.92 per cent to N850.211 million from N497.444 million in Q1 2020.
The company in the period under review reported N41.6billion revenue as against N52.1billion reported in Q1 2020.
However, the petroleum marketing company reported 4.7 per cent increase in shareholder funds to N19.1billion as at March 31, 2021 from N18.2billion reported in full year ended December 31, 2020 while total assets drops by 0.2 per cent to N62.3billion from N62.4billion reported in 2020.
In December 2010, the Company went through a restructuring and rebranding exercise and further changed its name to Forte Oil Plc.
Commenting on the results, the Chief Executive Officer, Olumide Adeosun in a statement said, “We had a good start in the first quarter of 2021 despite the PMS supply challenges that impacted product volumes and topline revenue across the downstream sector.
“AP delivered significant improvement in margins and continued its steady track towards core asset optimization and improved operational efficiency. Our resolve to build a resilient and agile enterprise was evident in the sterling growth of 108% in profit before tax achieved by the firm.
“We delivered this performance through the efficient distribution of our white products across our value chain and a stronger focus on growing revenue from our non-fuel businesses. Consequently, margins came in higher at 7.7per cent from 5.4per cent in the corresponding period, while operating expense declined by 24.3per cent amidst a high inflationary pressured environment.
“Our operational efficiency ratio further improved to 4.7 per cent from 5.0 per cent reported in Q1 2020. Working capital position remained healthy with a debt coverage of 21.1 per cent at the Company and 37.6 per cent at the Group.
“The improved capital position further reflects the strength of our balance sheet as we drive our growth aspirations with investments made in clean energy solutions.
“The Group’s haulage and transportation business, Axles and Cartage, also achieved a positive gross margin of 43% within the first three months of the year, reflecting our drive to build a viable and well-diversified business.
“The performance of this business within a short cycle also serves as a pointer to the sustainable returns we intend to achieve once our liquified petroleum gas and renewable energy projects commence full operations.
“We will continue to focus on our strategic priorities and commit firmly to delivering superior customer experience across all service touchpoints.
“Looking ahead, we remain dedicated to sustaining this positive start through the year as we continue to work at delighting our customers and building shareholders’ confidence in our company.”
Ardova, the parent of the Group, was incorporated on 11 December 1964 as British Petroleum. It was renamed African Petroleum through the nationalisation policy of the Federal Government in 1979.
In June 2019, the Company experienced a change in ownership structure. The majority shareholder in Forte Oil Plc sold all its shares in the Company to Ignite Investments and Commodities Limited. Following this, the Company’s name was changed to Ardova in January, 2020.
