The Chief Executive Officer of Ardova Plc (AP), formally (Forte Oil Plc), Olumide Adeosun, said the company will be targeting 20 percent of their revenue from energy business in the next three to four years.
He disclosed this to capital market community on Thursday 15, October 2020, while responding to questions after he presented facts behind the figures of the company financial statements and its growth prospects.
Adeosun, who was supported at the virtual presentation, by Moshood Olajide, Executive Director Finance and Risk Management, said “20% of our revenue over the three years will come from low carbon and renewable sources. We are confident in our brands ability to deliver”.
Commenting on the company strategic outlook for the remaining part of 2020, he said, “we understand our place in the life of an economy. This drives our commitment to service delivery. We are an energy service brand that believes energy sufficiency will help the economy take flight, we’re intentional about building an energy company designed for the future”
On its financial performance, Moshood Olajide said revenue grew by 5.5% year on year to N87.3 billion in the first half of 2020, as against N82.7 billion that was recorded same period in 2019. He explained that the growth in revenue was primarily driven by 7% growth in the fuels business constituting 91% of revenue.
According to him, the lubricant business constituting 9% of total revenue also contributed to revenue performance. Pointing out that during the period under consideration operating expense declined by 20%, which shows the management consistent drive to improve operational efficiency and maximize returns.
“Adjusting for the one off items accrued interest on subsidy and disposal of assets. Profit before tax increased significantly by 498% to N1.2 billion in first half of 2020, when compared with N0.3 billion that was reported in 2019. Similarly, profitability margins pitched in higher at 1.7% and 1.2% respectively”.
The company which was listed on the floor of Nigerian Stock Exchange (NSE), in 1978, at the close of trading transactions on Thursday 15, October 2020, share price closed at N12. In 2019 it change from Forte Oil Plc to Ardova Plc, after Ignite investment and commodities acquisition of 74.02% equity stake in Forte Oil Plc downstream operations.
Incorporated on December 11, 1964 as British Petroleum. after 14 years in operation, the company changed its status from a private limited liability company to a public liability company.
In compliance with the provisions of the Nigerian Enterprises Promotion Decree of 1977, 40% of the company’s shares were sold to Nigerians and a year later, 60% was acquired by the Federal Government of Nigeria in favour of the Nigerian National Petroleum Corporation (NNPC) from British Petroleum.
In November 1979 its name was changed to African Petroleum Plc. NNPC’s stake in AP was reduced by 20% in March 1989 after the Federal Government sold the above percentage to Nigerian Citizens, increasing their stake from 40% to 60%. In the year 2000, the Federal Government under its privatization programme divested its remaining 40% to core investors and interested Nigerians.
In May 2007, the shareholding structure took another dimension as Incorporated Trustees of NNPC’s Pension Fund divested its stake to Zenon Petroleum & Gas Limited, owned by Femi Otedola, making it the majority shareholder in the company.
As a result, Mr. Otedola and his affiliated entities became the core investor in the company. Under the new management, African Petroleum embarked on a rebranding and restructuring programme which led to a name change to Forte Oil Plc in December, 2010, and a rebranding of the retail outlets spread across the country.
In 2013 the company purchased a controlling stake in the 414 MW Geregu Power plant under a government-led privatisation programme in the power industry. Geregu Power Plant was commissioned in 2007 with three Siemens V94.2 open cycle gas turbine power generation units, namely GT11, GT12, and GT13, with an initial combined installed capacity of 414MW.
A major overhaul of the plant commenced in 2015 and was completed in 2016, increasing the combined capacity to 435MW. In 2015, they signed an $83 million contract with Siemens to upgrade the 414 MW plant, the work is due to be completed in 2016.
As at June 20, 2019, approx. 75% controlling shares of Forte oil were purchased by Prudent Energy and Services owned by Abdulwasiu Sowami through Sowami’s investment company Ignite Investments and Commodities Limited, thus effectively giving Sowami controlling shares of Forte oil excluding the Geregu Power plant.
At an Extra-ordinary General Meeting (EGM) held in Lagos on December 18, 2019, shareholders of Forte Oil Plc authorised the board of directors to change the company’s name to Ardova Plc. The new name, along with a new logo and tagline was officially launched to the public on February 19, 2020.