Shareholders of Ardova Plc formerly Forte Oil Plc are to receive a dividend of N249 million for the year ended December 31, 2020, translating to 19 kobo per share.
Directors of the integrated energy company recommended the dividend last week upon the release of the firm’s audited results. AP Plc recorded revenue of N181.7 billion in 2020, up 2.9 per cent from N176.6 billion in 2019.
Despite the high cost of doing business, operating expenses was reduced from N10.7 billion to N9.2 billion leading to an increase in gross profit to N12.131 billion, compared with N11.282 billion in 2019.
Net finance cost jumped from N270.2 million to N1.1 billion, while profit before tax (PBT) printed at N3.2 billion as against N4.7 billion in 2019, while profit after tax (PAT) stood at N2.1 billion compared with N3.9 billion in 2019.
Shareholder funds rose to N18.3 billion from N16.2 billion, while total assets jumped by 32.8 per cent to N62.4 billion, from N47 billion the previous year.
Commenting on the results, the Chief Executive Officer, AP Plc, said 2020 presented the most challenging market conditions globally with the energy sector being one of the worst hit by the pandemic.
“The foresight we had in the early activation of our business continuity plan proved essential as we transitioned to remote work with a near zero impediment to workflows. The resilience of our firm shone through as we forged ahead to achieve milestones we set in our strategic roadmap. We successfully commenced the roll out of our newly branded solar-service stations, we delivered on significant growth in market share on PMS sales volume, and a strategic partnership with Shell as the sole distributor of its lubricants in Nigeria,” he said.
According to him, hitting these mile stones powered the company to deliver a 46.7 per cent growth in normalised profit to N2.0billion, while operational efficiency ratios and margins improved to 5.1 per cent and 6.7 per cent.
“Our working capital position also remained healthy as debt coverage printed at 35.1 per cent. Most recently, we signed a non-binding offer for the potential acquisition of Enyo Retail and Supply Limited. Once concluded, Ardova will emerge as one of the largest indigenous players in the downstream sector,” he said.
Looking ahead, Adeosun said they remain focused on increasing long-term value for their shareholders by investing in higher margin products to improve their earnings-generating capacity and preserve the strength of AP’s balance sheet.