Global Spectrum Energy, an oil and gas company listed on the Nigerian Stock Exchange (NSE), has announced its biggest profit since 2014, as surplus on asset revaluation accounted for a five-fold increase in profit compared to its 2017 figures.
The Oil and Gas Company which offers services in complimentary Maritime Security, Logistics, Energy and Engineering services saw its revenue grow 72 percent to N1.87 billion in 2018 compared to N1.09, the year before.
For the year, Global Spectrum Energy’s operating cost (OPEX) rose significantly to N1.41 billion from N682.69 million owing to increased expenditure on direct materials and vessel cost, as well as an upsurge in wages, equipment hiring and other items.
Despite a triple-digit rise in OPEX, Gross profit rose 15 percent year on year to N466.52 million compared to N408.36 million in the comparable period of 2017.
Global Spectrum Energy shrugged off a 26 percent growth in administrative expenses to record N596 million, its biggest profit in 5-years, which was propelled by a revaluation surplus of N386.34 million.
Tax expenses fell 48 percent to N47.93 percent in 2018 as against N93.91 paid in the preceding period. The decline in income tax further boosted the company’s full year earnings year on year by 396 percent to N547.995 million in 2018.
Consequently, net margin rose to 29.27 percent in 2018 from 10.12 percent in the previous year, an indication of the efficiency of the oil company in managing its costs to retain net income from its revenue.
Earnings Per Share (basic and diluted) rose to N68.50 kobo in the review period from N13.81 in 2017.
Compared to 2017 figures, shareholders equity for Global Spectrum Energy rose to N2.21 billion from N1.65billion as retained earnings increased by 44.3 percent to N1.81 billion in 2018.
Shares of Global Spectrum Energy has remained at N5.75 per share, its 52-week low since the September last year after it plunged 9.45 percent from its 52-week high.
Global Spectrum Energy was incorporated as a private limited company in 2006 and went public through a special resolution seven years after.
The company is an integrated Pan African oil and gas servicing company with activities in oil and gas producing regions across Africa.
Service offering covers complimentary maritime security, logistics, energy and engineering services. The operation of the maritime services division and security systems division concentrate on developing countries especially in the West Africa region, including Ghana, Ivory Coast and Equatorial Guinea while it maintains three operational offices in Abuja, Lagos and Port Harcourt.
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