Ardova Plc has announced its unaudited results for the six-month (H1) ended June 30, 2020. Its income statement shows revenue of N87.3 billion, up 5.5 percent year-on-year (yoy) as against N82.7 billion in H1’19. Operating expense of N4.4 billion represents a decline of 20percent yoy (Jun 2019: N5.5 billion). Profit before tax printed low at N1.2 billion (Jun 2019: N6.3 billion).
Profit after tax (PAT) came in at N1 billion (Jun 2019: N5.5 billion). Shareholders’ fund of N17.2billion represents an increase of 6.3percent year-to-date (Ytd) (Dec 2019: N16.2 billion). Total assets of N45.3 billion, indicates a decline of 3.6percent year-to-date (Dec 2019: N47billion). In the H1’20, the company’s return on average equity (annualised) stood low at 13percent (Jun: 74percent); while normalised return on average equity (annualised) stood high at 13percent (Jun 2019: -3.4percent).
Commenting on the results, Olumide Adeosun, the Chief Executive Officer said: “The first half of 2020 was quite challenging globally as world economies dealt with the twin impact of COVID -19 and declining oil prices in the international market. Despite these challenges, we maintained a healthy working capital position, increased our top-line revenue, and effectively reined in cost, resulting in a 20percent reduction in operating expenses. Similarly, our operating expense ratio improved by 5.1percent with a normalized growth in profitability.”
Adeosun further said, “Our consistently improved financial performance over the last two quarters shows that we are underway to building a formidable integrated downstream energy company. As the lockdown on economic activities gradually eases, we will continue to adopt precautionary steps to ensure the safety and health of our employees and various stakeholders while growing our market share responsibly across all products at attractive margins.”
“Our resolve to investing in new streams of non-fuels revenue remain firm and is expected to yield sustainable returns in the short to medium term Staying true to our strategic direction, we will continue to engage right fit partners, adopt innovative capabilities and seek growth opportunities within the entire energy value chain as we deliver best-in-class customer experience aimed at value creation to our customers and shareholders”, he added.
Ardova Plc (AP) is a leading Nigerian integrated energy company with an extensive network of over 450 retail outlets in Nigeria and significant storage facilities in Apapa, Lagos and Onne, Rivers State. The company procures and distributes petrol (PMS), diesel (AGO), kerosene (DPK) and liquefied petroleum gas (LPG). It also manufactures and distributes a wide range of quality lubricants from its oil blending plant in Apapa, Lagos. These lubricants include: Super V, Visco 2000 and Diesel Motor Oil. AP is also the sole authorised distributor of Texaco branded Havoline Engine Oils and Lubricant in Nigeria.