Ardova Plc on Thursday announced the release of its 2021 Audited Financial Statements and first quarter (Q1) 2022 Unaudited Financial Results.
The company posted a profit of N1.54billion in the year ended December 31, 2021. However, losses from subsidiaries Axles and Cartage, and newly acquired Enyo Retail and Supply Limited created a group net loss position of N3.8billion.
In Q1 2022, Ardova Plc performance shows significant improvements as yields from investments made in 2021 contribute to growth in revenue, sales volume, and profits.
Ardova’s Chief Executive Officer, Olumide Adeosun, said; “2021 proved to be an eventful year for Ardova Plc, as it marked the completion of our stabilization strategy, with the consequent strengthened balance sheet providing the leverage for the inorganic expansion required to evolve Ardova into an integrated energy company.
Highlighting parts of the expansion phase that became material in 2021, Adeosun stated that, “In the course of the year, we concluded a landmark capital raise of N25.3 billion in an over-subscribed bond that was the largest by any downstream company in Nigeria, and an indication of investor confidence in Ardova’s future. We also concluded the acquisition of Enyo Retail and Supply Limited (ERSL) in a deal that makes our retail network the largest in Nigeria.
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The company also made further investments in cleaner energy infrastructure, as it commenced onsite work on its 20,000 metric tonne Liquefied Petroleum Gas (LPG) storage facility in Ijora. Ardova won a license to operate an Oil Marginal Field following a successful bid in the 2020 round, thereby increasing the company’s potential for foreign currency revenue generation.
Moshood Olajide, Ardova’s Chief Financial Officer noted that “The company continued to deliver on profits, as we ended Q1 with a profit-after-tax position of N1.6billion, which is a growth of 37percent compared to same period in 2021. We also continued to increase our capital expenditure, principally in investments that facilitate our strategic expansion, and we expect to see returns within a three-year window.”
Olajide further noted that Ardova’s Q1 2022 results showcased resilience as “We sustained competitive growth by increasing revenue by 21petcent YoY (Group: 50percent YoY), with the resulting profit of N1.6Bn putting us in a 37percent growth YoY position.”
“As a group, we were negatively impacted by our subsidiaries, Axles & Cartage Limited, which faced operational environment issues and the newly acquired Enyo, which is presently undergoing a transformation process to drive operational efficiency and profitability. When subsidiaries are taken consideration the group loss amounts to N3.8billion”.
Adeosun stated that “the loss experienced in 2021 are an expected reflection of the strategic inorganic growth programme of the company, and do not affect the viability of the company, especially as some of the immediate benefits of this programme were illustrated by the better year on year performance recorded in our Q1 2022 results.”
He also stated once fully integrated, the acquisitions alongside the AP Renewables subsidiary will provide and safeguard Ardova’s capacity to thrive as global energy consumption tilts to cleaner sources.
Here are the earnings highlights
Income Statement for period ended March 31, 2022: Revenue of N50.57 billion, up 21percent year-on-year (y-o-y) (Group: 62.93billion). Gross Profit of N4.82 billion, up 51percent y-o-y (Group: N5.42billion). Net finance cost of N1.03 billion, up 462percent (Group: N1.61 billion). Profit before tax of N1.60 billion up 37percent (Group: N0.19 billion). Earnings per share of N1.23 (Group: N0.15).
Statement of Financial Position: Shareholder funds of N21.12 billion, up 8percent year to date (Ytd) (Group: N17.30 billion). Total assets of N127.95 billion, up 25percent Ytd (Group: N127.29 billion).
Key Ratios: Gross margin: Group 9percent, Company 10percent (Mar 2021: 8percent). Return on average equity: Group 1.1percent; Company 7.9percent (Dec 2021: 12.8percent). Operating expenses/Revenue: Group 6percent, Company 4percent (Mar 2021: 5percent). Interest cover: Group 1.1x; Company 2.5x (Mar 2021: 7.4x). Gearing ratio: Group 326percent; Company 153percent (Dec 2021: Group 342percent; Company, 160percent). Total Asset/Equity: Group 7.4x; Company 6.1x (Dec 2021: Group 7.4x; Company, 5.2x)
Ardova Plc is a Nigerian leading indigenous and integrated energy company involved in the distribution of petroleum products. With an extensive network of 700 retail outlets in Nigeria and significant storage facilities in Apapa, Lagos and Onne, Rivers State, Ardova procures and distributes petrol (PMS), diesel (AGO), Jet fuel (ATK) and liquefied petroleum gas (LPG). Its services also involve the manufacturing and distribution of a wide range of quality lubricants from its oil blending plant in Apapa, Lagos. These lubricants include: Super V, Visco 2000 and Diesel Motor Oil. Ardova is also the sole authorised distributor of Shell branded automotive and industrial lubricants and greases
As one of Nigeria’s leading suppliers of aviation fuel for local and international airlines, Ardova provides aircraft refueling services through its aviation joint user hydrants in Ikeja, Lagos and joint aviation depots in Abuja, Port Harcourt and Kano. In addition to its strategic retail and commercial network, Ardova is committed to delivering renewable energy solutions to customers.
