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Global Spectrum Energy posts lowest profit in 4years on revenue decline

An integrated oil and gas offshore support vessel services company, Global Spectrum Energy has reported its lowest nine-month profit in four years in the period ended September 30 2021, according to its financial report.

The Pan-African company reported a profit after tax declined by 32 percent to N128.33 million in the nine months report of 2021 compared to N189.87 million in the same period last year.

The profit after tax in the first nine months of this year is also the lowest the company has recorded going by the oldest financial report published in 2017 on the Nigeria Exchange Group (NGX) website.

Compared to the N147.77 million profit reported in the nine months of 2017, the N128.33 million is lower by 13.15 percent.

The company’s performance in the review period was on the back of the plunge in its revenue.

During the period under review, Global Spectrum Energy’s revenue reduced by 28 percent year-on-year, this was largely fueled by the reduction in the income obtained from the company’s services. The revenue dropped to N1.29 billion in the review period from N1.79 billion in the previous year.

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However, other incomes increased to N10.02 million in the first nine months of 2021 from N9.49 million in the same period of 2020.

Analysis of Global Spectrum Energy’s nine-month financial result revealed that the company’s expenses in the review period followed the same trend as the profit after tax that declined this year.

The company’s administrative expenses declined by 4.55 percent to N209.55 million in the first nine months from the N219.54 million recorded in the same period last year.

Finance costs dropped by 17.03 percent to N4.46 million when compared to N5.38 million last year.

Global Spectrum Energy’s asset was also down by 2 percent to N5.64 billion from N5.76 billion in the first nine months report of 2020 while the total liabilities increased by 2.55 percent to N5.06 billion in the same period of 2021 from 4.94 billion recorded in 2020.

Global Spectrum Energy Services Plc is an integrated Pan African oil and gas offshore support vessel servicing company involved in many of the key oil and gas producing areas in West Africa.

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