With the acquisition of Enyo Retail and Supply Limited (ERSL) in 2021, Ardova Plc, a marketer of petroleum products, has recorded a revenue of N62.9 billion in the first quarter (Q1) of 2022, the highest in ten years.
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.
The company’s revenue grew by 121.5 percent to N62.9billion in Q1 2022 from N28.4 billion in the same period of 2022.
A breakdown of the company’s 2022 revenue shows that sales of fuel contributed the highest to total revenue by 86.9 percent.
Sales of fuel amounted to N54.7 billion in the first quarter of 2022, compared to lubricant and greases, solar system, LPG and Cylinder Sales, and Haulage and transportation services & others which amounted to N7.6 billion, N2.8 million, N321.6 million, and N349.7 million respectively.
Despite recording an increase in revenue in Q1 2022, the company recorded an 83.4 percent decline in profit to N193.2 million from N1.2 billion in the comparable period of 2021.
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The decline in profit was a result of higher operating expenses and net finance costs which increased by 73.5 percent and 561 percent.
The operating costs during the first three months of 2022 amounted to N3.7 billion, from N2.1 billion recorded in the same period of 2021 while its net finance cost increased to N1.6 billion from N243.9 million in the corresponding period last year.
Analysis by BusinessDay to gauge the profitability of the company relative to its revenue shows a profit margin of 0.31 percent.
Administrative expenses amounted to N2.5 billion during the first quarter of 2022, a 111.1 percent increase from N1.50 billion in the first quarter of 2021.
Similarly, its distribution expenses increased by 85.9 percent to N1.1 billion in March 2022 from N607 million in March 2021.
The oil company also saw its total asset surge to N127.3 billion, from N65.3 billion previously recorded in the first quarter of 2021.
The company’s net asset, which is also its total shareholders’ equity, amounted to N17.3 billion in Q1 2022. Adrova recorded total liabilities amounting to N109.9 billion in the first quarter of 2022.
Its cash and cash equivalent, which represents the value of a company’s assets that are cash or can be converted into cash immediately surged to N8.3 billion in the first quarter of 2022 from a loss of N580 million in the comparable period of 2021.
The oil company’s earnings per share declined to 15 kobo in the first three months of 2022, as against 38 kobo recorded in the first three months of 2021.
