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Forte Oil (Now Ardova Plc) Thrives Without Femi Otedola, Grows Profit After Tax by Over 550 Percent in Q3 2020

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Ardova

Ardova Plc Grows Profit After Tax to N875.380 Million in Q3 2020

Ardova Plc formerly known as Forte Oil continues to thrive despite the exit of its former owner, Billionaire Femi Otedola.

The company returned to profitability last year after disposing some of its units to focus on those generating money.

In the unaudited financial statements released through the Nigerian Stock Exchange on Friday, the oil company grew revenue to N40.866 billion in the third quarter (Q3) ended September 30, 2020.

This was slightly higher than the N40.761 billion posted in the same period of 2019.

The cost of sales also declined marginally from N38.209 billion in the corresponding period of 2019 to N37.267 billion in the period under review.

Ardova grew gross profit from N2.552 billion in Q3 2019 to N3.599 billion in Q3 2020. While operating profit more than double from N642.318 million achieved in the corresponding period of 2019 to N1.394 billion in Q3 2020.

Also, the indigenous oil marketing company reduced finance cost from -N598.475 million posted in the same quarter of 2019 to -N216.916 million in Q3 2020. However, finance income dropped from N165.242 million in Q3 2019 to N72.008 million in Q3 2020.

Still, the company managed to reduce net finance cost from -N433.233 million in Q3 2019 to -N144.908 million in Q3 2020.

Ardova grew profit before tax by over 600 percent from N209.085 million in Q3 2019 to N1.249 billion in Q3 2020.

Similarly, the company’s profit after tax rose by over 550 percent from -N190.843 million posted in the third quarter of 2019 to N875.380 million in Q3 2020.

Earnings per share rose from -15 kobo in Q3 2019 to 67 kobo in Q3 2020.

Abdulwasiu Sowami, the owner of Prudent Energy, purchased Femi Otedola’s 75 percent stake in Forte Oil before changing its name to Ardova and appointed Olumide Adeosun as the Chief Executive Director of the company.

Since the purchase, Adeosun has embarked on a series of restructuring and disposed certain business units that were becoming a liability to curb losses and improves profitability at a minimal cost.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

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stanbic IBTC Insurance

Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).

In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.

“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.

“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”

 

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World Bank to Discuss New $1.5 Billion Loan Request From Nigeria

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Zainab Ahmed

The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.

The minister disclosed this on Bloomberg TV.

She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.

In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.

Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.

Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.

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Nigeria Realises Over N400 Billion from Company Income Tax in the Third Quarter of 2020

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tax relief

The Federal Government realised N416.01 billion from Company Income Tax (CIT) in the third quarter of the year, according to the latest report from the National Bureau of Statistics (NBS).

This was 3.48 percent higher than the N402.03 billion generated in the second quarter of the year and represents a decline of 20.13 percent year-on-year from N520.89 billion realised in the third quarter of 2019.

A breakdown of the report showed the professional services sector including the telecoms generated the highest amount of CIT at N55.52 billion during the quarter, while the manufacturing sector followed with N42.03 billion.

The banking and financial institutions realised N24.05 billion while the mining generated the least and closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million and N321.72 million generated, respectively.

The report added that out of the total amount realised during the quarter under review, a sum of N244.70 billion was generated as CIT locally. The federal government collected N70.34 billion as foreign CIT payment and the remain N100.97 billion was received as CIT from other payments.

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