The Nigerian Stock Exchange (NSE) on Monday listed by introduction on its Main Board, 800million ordinary shares of Global Spectrum Energy Services Plc at N5 per share.
Global Spectrum Energy Services Plc is an integrated Oil & Gas Offshore Support Vessel Services Company operating in key oil and gas producing areas in West Africa.
This listing added N4billion to the market capitalisation of The Exchange, further deepening the Nigerian capital market. Compass Investment & Securities Limited and Goldbanc Management Associates Limited acted as the syndicate stockbrokers and lead financial advisers.
Global Spectrum Energy Services Plc is registered as an Oil, Gas & Marine services company with all of the major international oil companies (IOCs) in Nigeria (Total, Mobil, Chevron,SPDC, Agip & Addax).
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The company with customer base which includes Total, Mobil, SAPETRO, S.P.D.C, ExxonMobil and Addax also has existing facilities with office, warehouse and waterfront premises in Port Harcourt, Lagos, Abuja located in close proximity to the major IOC’s office premises. “We have executed repeat contract services with these companies since 2009”, Colm Doyle, MD/CEO Global Spectrum Energy Services plc told investors.
Business expansion plan
In Oil& Gas business, the company plans to expand and diversify its product base to further strengthen its business capacity and profitability. Its expansion strategy consists of the following Products and Services: Refined Petroleum Products Supply & Distribution Tank Farm as well as Line Pipe Manufacturing; while in Marine business it looks to Blending of Lubricants, Vessel Fleet Expansion (Tanker, Patrol Vessels). Its business expansion capital outlay is valued at $200million (N72billion).
Financial projection
Pipe Mill –the investment recovery period is 3 years after commissioning. Based on its production ramp-up plan which is: operating at 40percent capacity for the first year; 70percent for the second year and 90percent for the third year and onwards the company’s annual profit after payback is projected at $60million to $70million per year. The 3-year payback period has not taken into account the income from trading of pipes during the 2-year construction period.
Financial performance/projection
The company recorded turnover of N934.622million in ten months into 2017 against N801.582million in 2016. Its turnover trend shows N986.450million (2013); N875.432 (2014); N912.185million (2015). In ten months into 2017, its profit before taxation (PBT) stood at N347.131million against N225.613million in 2016.
Other years Profit Before Tax trend shows N165.314million (2013); N261.505million (2014); and N268.502 (2015).
The company projects turnover of N3.881billion in 2018; N5.076billion (2019); N5.565billion (2020); N7.815billion (2021); and N8.080billion (2022). Likewise, it plans to grow profit before tax to N847.870million in 2018; N1.298billion (2019); N1.568billion (2020); N2.455billion (2021); and N2.616billion in 2022.
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The company
Global Spectrum Energy Services Plc has acquired a prime waterfront site in Rumoulumeni, Port Harcourt for the development of a 50 million litres capacity Tank Farm with Storage capacity for refined Petroleum PMS , AGO, DPK and a 6.000 Metric Tonnes LPG storage facility Tank farm and LPG Storage facility will span over 40 acres of land with Jetty load /unloading facilities. This according to the company is intended to serve as storage and loading facilities for the operators and consumers in the downstream petroleum sector around the Southeast and South-South regions of the country.
In conjunction with its Partners Aegean Marine Petroleum S.A in Greece the company will develop 10,000 metric ton ultra-modern lubricant blending plant as well as a state of the art laboratory situated at the Tank Farm site in Port Harcourt. Global Spectrum Energy Services Plc is the local supplier of Aegean marine lubricants in Nigeria. NYSE-listed Aegean Marine Petroleum, apart from being a leading global bunker physical supplier, has also been trading marine lubricants for more than 16 years, supplying vessels worldwide from carefully selected major marine brands. In order to service forthcoming long term vessel charter contracts with its existing clients (Total, Addax, SNEPCO, Mobil, NPDC ) there is a requirement for Global Spectrum Energy Services Plc in 2018 to expand its Offshore Support Vessel fleet. The company is actively seeking to build capacity in its wholly Nigerian owned and flagged vessels. Wholly Nigerian owned and flagged vessels have a distinct competitive advantage in the current Maritime sector, the management told investors at the Nigerian Stock Exchange.
Stakeholders comment on listing
Oscar Onyema, CEO, Nigerian Stock Exchange said the listing is a promising development in the country’s downstream sector “and we encourage more local players to explore the different opportunities in the capital markets for raising long term capital. We believe that increased participation of domestic energy companies in the capital markets will increase investors’ confidence (both local and international) and entrench good corporate governance, transparency and sustainability in the downstream sector”.
Colm Doyle, MD/CEO Global Spectrum in a statement said the company has a 5 year expansion and diversification plan to grow its product base to further strengthen the business capacity and profitability of the company. “Our expansion strategy consists of refined petroleum products supply and distribution tank farm, and line pipe manufacturing in oil and gas. Blending of lubricants, vessels fleet expansion that includes tanker, patrol vessels in the maritime sector,” he stated.
Iheanyi Nwachukwu
