Global Spectrum Energy Services Plc (GSES) recorded strong improvement in its profit with investors reaping 5kobo interim dividend.
The company’s profit after tax grew by a significant 396percent to N548 million for the operational year ended December 31, 2018, as against a profit of N110.5 million accounted for in the previous period of 2017.
The company maintained the growth trend in all performance indicators with revenue growing by 72percent to close at N1.87 billion for the period under review, compared to N1.09 billion achieved in the previous year.
Profit before tax appreciated by 192percent to N596 million in the 2018 period, while the 2017 pre-tax figure closed at N204 million.
The 5kobo interim dividend is however appropriate from the third quarter operations of the company ended September 30, 2019. The nine months’ result shows gross profit for the period stood at N253.7 million, while revenue is at N1.05 billion.
The shareholders at the annual general meeting (AGM) held Monday in Lagos expressed great satisfaction at the performance of the Company, describing it as quite remarkable given the very harsh and uncertain economic condition under which businesses operate in Nigeria. They also commended the company for the payment of an interim dividend barely 12 months after being listed on the Nigerian Stock Exchange (NSE).
According to the shareholders, the performance of the company shows that Board and management are quite focused and understands the operational dynamics of their industry of business. According to Yemi Adebayo, a shareholder, the profit growth of the company for the period being considered is quite commendable. This is more so, he said, as most organisations within the sector that GSES operates are still trying to find their feet in the very uncertain business environment. He urged the board and management to remain focused to ensure that the performance is sustained.
Also speaking, Nona Awo, in his very insightful comments commended the company for the 2018 financial performance, but cautioned that the company should manage their dividend policy very in the face capital challenges that companies currently face. He said the board should adopt a dividend policy that will enable the company build up strong reserve for future capital investment and growth.
Speaking earlier, Colm Doyle, the Acting Chief Executive Officer (ACEO) of the company said, the performance of the company was as a result of the competencies the company has demonstrated in its area of business. He said the GSES operates in a niche but very competitive sector of the oil and gas industry; but has maintained good performance ostensibly due its policy of bringing on board the best skilled manpower.
Colm further noted that GSES operational policies are derived strictly from the needs base of the clients, which is the reason the company remains a preferred partner with the IOCs.
Global Spectrum Energy Services Plc is a marine security and logistics company, with added operational competencies in energy and engineering services in the oil and gas sector. The company was incorporated in on March 14, 2006 and converted to a public limited company in 2013 in continued pursuit towards the achievement of its strategic growth objectives. The company was listed on the main board of the Nigerian Stock Exchange in 2017 and its shares are actively traded on the floor of the Exchange. It currently has over 500 shareholders in its register of members.