Having secured a license to operate an Oil Marginal Field through the recently concluded bidding round , Ardova Plc has posted a profit of N1.54 billion for the year ended 31 December 2021.
This was disclosed in its audited financial statements filed with the Nigerian Exchange Group Plc (NGX Group Plc) on Thursday, after it was approved by the company’s Board of Directors, following its meeting on 29 June, 2022.
Ardova Plc, is one of the country’s leading indigenous and integrated energy companies involved in the distribution of petroleum products.
The audited report also revealed a healthy future outlook as the company achieved a growth in revenue , climbing to N62.934 billion for the first quarter ended March 2022 and in contrast to the preceding year’s earning of 41.986 billion in 2021.
The company is now progressing work to bring on stream a Power Plant out of the five National Integrated Power Projects (NIPPs) having scaled through a competitive pre-qualified process for the privatisation.
EnergyDay gathered NGX, in accordance with its rules, had earlier slammed suspension of trading order on Ardova Plc, Niger Insurance, C&I Leasing, African Alliance Insurance, Coronation Insurance, Ekocorp, Premier Paints and Mutual Benefits Assurance, for failing to file their Audited Financial Statements (AFS) for the year ended December 31, 2021.
Ardova, while apologizing to the NGX and its stakeholders for the inconvenience caused by the delay in filing the statement, said the company remains committed to the highest standards of compliance and corporate governance.
It therefore prayed that NGX would lift the suspension upon the submission of the statement.
The company in the unaudited financial statement submitted to NGX, posted 49.89% growth in revenue to N62.934 billion for the first quarter ended March 2022 as against N41.986 billion in 2021 same period.
It also posted a profit of N1.54 billion in the year ended 31 December 2021, while also declaring losses from subsidiaries Axles and Cartage, and newly acquired Enyo Retail and Supply Limited created a group net loss position of N3.8bn.
Ardova’s Chief Executive Officer, Olumide Adeosun, said; “2021 proved to be an eventful year for Ardova Plc, as it marked the completion of our stabilization strategy, with the consequent strengthened balance sheet providing the leverage for the inorganic expansion required to evolve Ardova into an integrated energy company.”
“In the course of the year, we concluded a landmark capital raise of N25.3 billion in an oversubscribed bond that was the largest by any downstream company in Nigeria and an indication of investor confidence in Ardova’s future.
“We also concluded the acquisition of Enyo Retail and Supply Limited (ERSL) in a deal that makes our retail network the largest in Nigeria.
“We made further investments in cleaner energy infrastructure, as it commenced onsite work on its 20,000 metric tonne Liquefied Petroleum Gas (LPG) storage facility in Ijora.
Moshood Olajide, Ardova’s Chief Financial Officer noted that “The company continued to deliver on profits, as we ended Q1 with a profit-after-tax position of N1.6bn, which is a growth of 37% compared to the same period in 2021.
“We also continued to increase our capital expenditure, principally in investments that facilitate our strategic expansion, and we expect to see returns within a three-year window,” the Ardova’s CFO revealed.
Ardova further established that in Q1 2022, AP’s performance showed significant improvements as yields from investments made in 2021 contributed to growth in revenue, sales volume, and profits.