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.