- 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.