C&I Leasing eyes big market share with electric vehicles

C&I Leasing Plc is opening up new investment opportunities with its initiatives embarked upon by the management to boost performance and revenue.

Ugoji Lenin Ugoji, managing director of the company, while speaking in an interview at the end of the company’s 33rd yearly general meeting held in Lagos on Monday, disclosed that the company has commenced the trials into electric cars, stating that the firm is currently servicing a major company in Ghana. According to Ugoji, the company has also commenced research into CNG vehicles in Nigeria to enhance efficiency and business operations. He pointed out that these initiatives would reduce the average cost of operating a vehicle and open up new investment opportunities for the company.

On the marine business, he disclosed that the increments in the number of years for contracts in the oil and gas space would increase vessel utilisation and ultimately more investment. “Policy of the new administration is clearly towards increasing oil production because the country is in dire need of more revenue”. Based on this, increased production would require increased use of vessel and marine services which we provide.

“There is a positive outlook for us in 2024 and 2025 and with this, we will gradually start having a sustainable dividend going forward.”

Also at the meeting, the shareholders endorsed a dividend of five kobo to every investor of the company for the 2023 financial year.

Speaking earlier, Samuel Maduka Onyishi, chairman, assured that the firm remains resolute in harnessing the opportunities that the current reality presents to enhance the group’s profitability and shareholder value.

He said the company would continue to navigate these challenges by proactively embracing change, exploring new diversification initiatives, implementing cost optimisation strategies and leveraging technology to offer innovative solutions for its clients.

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He said the group’s gross earnings increased by 25 percent from N17.94 billion in 2022 to N22.41 billion in 2023 largely driven by growth in net lease income.

Also, operating profit of the group increased by 14 percent from N4.99 billion in 2022 to N5.69 billion in 2023 while Profit Before Tax (PBT) of the group increased by 52 percent from N1.02 billion in 2022 to N1.55 billion in 2023.

He added that the group also recorded a Profit After Tax (PAT) of N273 million compared to N577 million achieved in 2022. “Going forward, by next year, the dividend will do better. We are working to make sure more of our vehicles are on the road. Our target is to make sure this company looks up. No more losses,” he said.

Founder of Independent Shareholders of Nigeria, Sunny Nwosu, applauded the company for increasing shareholders’ return on investment through dividends amid harsh operating environment while urging the company to convert its trade receivables to turnover to boost dividend payout in the current financial year.