@ 60: Ardova Plc Poised For More Cleaner And Safer Environment In it’s Operations

… to embark on renewable energy expansion

As a leading player in the domestic downstream sub-sector, Ardova Plc has assured of a cleaner and safer environment in line with global operating standard.

Ardova Plc Chief Executive Officer, Mr. Moshood Olajide made this remark as one of its major highlights Thursday, while briefing the financial press in Lagos, in commemoration of the company’s landmark 60th anniversary celebration, under the banner “60 Years of Energising Progress With Endless Possibilities”.

Mr. Olajide who underscored the vital role of Liquefied Petroleum Gas (LPG) in shaping the nation’s future, and considering the company’s aggressive investment in technology to driving it’s businesses, further assured on increased profitability and operational efficiency.

According to him, in line with global standard, “as a business, we believe in energy transition. You know why, it will be out of place considering the business of our scale, if we do not understand the business of our environment and how there has been a shift from polluting the environment and making the environment livable for our children. And we have beginning to see the impact. You can see the flood that is happening in Nigeria. You can see the uttered impact. A month or two ago, we should have had a lot of food in the market, but there are two things that was responsible for that. One is security, internal security, and damaging in terms of rainfall. It’s difficult to plan, that is part of climate change.”

“In Ardova, we believe in energy transition. In Nigeria context, there’s need for a just transition. Gas is going to be a significant part of that. Gas is cleaner form of energy than other sources that we are talking about. We believe that other renewable energy such as solar, maybe wind, maybe hydro will be a significant part of that future.

Speaking specifically on transition energy as a disruptor of going concern in the domestic economy, especially in the space where Ardova operates, Mr. Olajide said, “at Ardova we are investing significantly in those things we believe will be a disruptor to our business.

“If you look at our business, you see that energy transition is more or less a business disruption for us. We supply energy right now. Any disruption reduces our share of the market. So, what we are doing is investing in own disruption. So, we are investing in Solar, investing in Gas. We have the largest LPG storage facility in the whole of West Africa.

On backward integration, Mr. Olajide said Ardova is the only company that operates in the downtown stream sub-sector that has a fully integrated model.

“We call it from coast to home. we are the only one at the scale at which we do it. The only one who invested in Refinery to where you pick it up at our station and where we delivered the LPG to your home. So, we have investments in the whole of the value chain. So, backward integration, investing in Refinery is not of the table for us. It’s not what we are looking at the moment, but if there are opportunity out there to do that, we will do that, especially from the supply security perspective. I think we have Refinery in the country now that support supply security. we want to focus on our retail business for now, and develop it to a level we want it to be.

Speaking on the company’s profitability, the Ardova CEO maintained that, considering the enormous investment put into technology and other aspect of the business, they expect to see enhanced efficiency in its operations and profitability.

“We project into the future, that our numbers will improve, even in the coming years. From our revenue perspective, from the volume delivered to the market, and the net return perspective”, he added.

Meanwhile, Ardova Plc had said that investments made in 2021 contributed to the growth in revenue, sales volume, and profits.

It disclosed this in a statement on its ‘2021 audited financial statements and Q1, 2022 unaudited financial results’.

The statement said, “The company posted a profit of N1.54bn in the year ended 31 December, 2021. However, losses from subsidiaries Axles and Cartage, and newly acquired Enyo Retail and Supply Limited created a group net loss position of N3.8bn.

“In Q1 2022, AP’s performance shows significant improvements as yields from investments made in 2021 contribute to growth in revenue, sales volume, and profits.”

Photo Caption:

From left: Mr. Abdul Hakeem Buhari, Chief Operating Officer; Mrs. Abiola Durisimi Etti, an Independent Director; Mr. Moshood Olajide, Managing Director; Mr. Abdulwasiu Sowari, Group Executive Director; Mrs. Abiola Babatunde-Ojo, Deputy Managing Director and Mr. Mohammed Aminu-Umar, an Independent Director all of Ardova Plc, during the press briefing on Thursday in Lagos in commemoration of its landmark 60th anniversary celebration, under the banner “60 Years of Energising Progress With Endless Possibilities.