C & I Leasing Plc has disclosed its readiness to explore alternative energy initiatives for revenue and profitability growth.
The largest integrated leasing company in West Africa made this known on Thursday, September 26 when its chairman Samuel Maduka Onyishi led other board members and management team to ring the closing gong after trading activities on the floor of the Nigerian Exchange Limited (NGX).
The company also held a “Facts Behind the Figures” presentation on the NGX. The chairman was accompanied to NGX by Chukwuemeka Ndu, founder and Vice Chairman, C&I Leasing Plc; Ugoji Lenin Ugoji, GMD/CEO, C&I Leasing, and other members of the management team.
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C&I Leasing Plc noted its readiness to tap into opportunities in the compressed natural gas (CNG) vehicle initiatives in-line with the Federal Government gas policy to drive revenue.
Ugoji Lenin, GMD/CEO C & I Leasing Plc, disclosed that their subsidiary has already commenced experimenting with electric vehicles in Ghana, stressing that in Nigeria, it is currently researching CNG vehicles and getting promising results.
He said, “We think that we’re going to continue in that line in terms of not just to speak to CNG vehicle investment, but actually to do it. We think we can provide some support in that sector.”
According to him, there is a need to understand the impact of CNG on manufactured fuel vehicles, stressing on the importance of fuel to CNG conversion research.
“We will research as long as we think it is necessary. A typical vehicle is amortised over four or five years. So, that means that you need to know what’s going to be the impact of CNG on vehicles.
“By the end of first year, we should be able to provide some credible results. We are also using the test for clients as well to see how it also services them and brings down their cost,” he said
On dividend to shareholders, he said government policies are tending towards the Oil & gas sector with the aim of increasing revenue.
“The FG requires revenue to invest a lot in the Oil & Gas sector. We provide services in the Marine services, most especially in the mid-stream and of course, with the increased production means increased requirement for services in the marine space. We think that will naturally bring more revenue for the company. We think that will give us the sustainability of a higher dividend,” he added.
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Okechukwu Nnake, Chief Financial Officer, C & I Leasing presenting the “Fact Behind The Figures” said the turnover increased by N8.2 billion, 82 percent above actual in H1 2023 over optimal utilisation of operating leased assets, growth in cross-marine charter and new contracts and expansion in the existing ones.
He stated that the profit before tax increased by N807 million, 299 percent above actual in H1 2023 due to growth in revenue through expansion in existing/ new contracts, employing several cost optimisation techniques via continuous process improvement and automation technology.
He assured the market community that C & I Leasing would continue to optimise cross charter to generate high margins with minimal capital investment.
On mid-term and long-term business outlook in the Marine sector, he explained that with a focus on the expansion of the gas sector, the company intends to explore gas transportation by positioning as a strategic partner in the government’s drive towards a gas-based economy.
On fleet, he said, “Subsidy removal has created opportunities in the Alternative Energy vehicles space for C & I Leasing. New opportunities in EV and CNG propel engines in line with Federal Government green energy policy.
“Deregulations of the downstream petroleum sector hold opportunities for logistics expansion in the Oil & gas sector.”
Jude Chiemeka, CEO, NGX said C & I Leasing has been a prominent player on the Exchange, with over two decades of operational excellence.
He expressed that over the years, the company has evolved into a diversified conglomerate specializing in leasing and business services.
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“The Company now serves a wide range of clients, including both indigenous and multinational organizations across West Africa. Its comprehensive service portfolio includes Fleet Management, Personnel Outsourcing, and Marine Services, positioning the company as a leader in its industry.
“In the face of ongoing economic challenges, we recognise the commendable efforts of C & I Leasing’s Board and Management in enhancing operations, promoting business continuity, and restoring investor confidence. Your dedication to these goals reflects the resilience and adaptability that are essential in today’s market environment,” Chiemeka said.
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