Ardova Plc has reported a revenue of N52.1 billion for the first quarter ended March 31, 2020, showing an increase by 22.3 per cent, compared with N426 billion posted in the corresponding period of 2019. The rise in revenue was primarily driven by a 24.6 per cent growth with fuel business constituting 92 per cent and a marginal increase in the lubricant business constituting eight per cent of total revenue.
The company continued to focus on driving operational efficiency and rein in costs while maximising revenue streams. Consequently, operating expenses ratio on revenue improved by five per cent in Q1 2020, from 5.4 per cent in corresponding period. Net financing cost improved from N651 million in 2019 to N155 million in 2020, primarily driven by reduction in interest due on early payment of outstanding debt and a reduction in interest rates paid on trade finance, loans and overdraft facilities during the period.
The company ended the Q1 of 2020 with a profit after tax of N497 million, compared with N3.334 billion in 2019. The 27.6 per cent growth in core profit before income tax was masked by divestment proceeds from the sale of the company’s subsidiaries, Amperion Power Distribution Company Limited, Forte Upstream Services Limited and AP Oil and Gas Ghana in 2019.
Commenting on the results, the Chief Executive Officer, Ardova Plc, Olumide Adeosun, said:
“ Despite the challenging operating environment in the first quarter of 2020, our business remained resilient in delivering sustainable value, evidenced by a 22.3 per cent growth in revenue. We were able to improve the supply of white products across our retail outlets amidst the nation – wide lockdown and in a market of compressed margins. Our strong operational and efficiency focus also resulted in an improvement of 5.0 per cent in our operating expense ratio. As a formidable player in the downstream sector, we continued to re – validate our long – term operational strategy across the entire energy value chain.”
According to him, with the fast – paced evolution of energy beyond fossil fuel consumption, the company has continued to invest in non – fuel revenue initiatives while working with right – fit partners to further drive its aspirations of achieving a 20 per cent contribution from renewables and higher – margin products by 2024.
“We also institutionalised work processes in line with our business continuity plan in response to the outbreak of the novel coronavirus disease while leveraging technology and innovative capabilities to ensure business resilience. Our foresight in setting up business continuity frameworks for unique circumstances such as this, showcases our long – standing preparedness towards sustaining a near – zero impediment to operational efficiency. At Ardova, we remain united with the government and private partners as we collectively work together to flatten the curve of COVID – 19 . Our business is well – positioned to respond to the changes in the business environm ent and o ur commitment to delivering sustainable value to shareholders, partners’ and customers remains firm . W e will continue to focus on providing superior customer experiences with the highest level of safety, integrity and operational excellence, ” Adeosun said.