Economy
Ardova to Fund Enyo Acquisition With Debt, Equity
By Dipo Olowookere
In the first month of 2021, the board of Ardova Plc announced that the company was planning to acquire a retail downstream player, Enyo, as part of its efforts to capture the retail segment of the oil business.
Enyo is an energy firm with about 93 outlets spread across the country and while addressing an analyst call last week, the management said the “deal fits nicely into our strategic plan” and would complement its retail base because of the access to the retail outlets.
It further said the integration of the 93 retail outlets of Enyo into the over 450 outlets of Ardova would allow the organisation to “deliver more through the channels” and provide “opportunities around digitalisation.”
At the conference call attended by Business Post, the management explained that the transaction is purely an acquisition and not a merger and would be funded through debt and equity.
“Let me make this clarification that the Enyo deal is an acquisition, not a merger as we are buying the company 100 per cent.
“We intend to fund the transaction via debt and equity and the deal fits nicely into our strategic plan,” a member of the management informed participants.
In January 2021, when Ardova informed the investing public about the development, it said the transaction is expected to be completed in the first quarter of the year. However, it is still not certain if this timeline would be met.
Some days ago, Ardova released its financial statements for the 2020 accounting year and in the period, it reported an increase in revenue, N181.9 billion versus N176.6 billion in 2019 and a profit after tax of N1.9 billion.
The board then recommended a dividend of 19 kobo, which did not go down well with shareholders and shares of the company were punished, declining significantly within a few days.
While commenting on this at the analyst call, the chief executive of Ardova, Mr Olumide Adeosun, explained that the board was aware of the resentment that followed the cash reward, but emphasised that the payment was a mere reward for investors’ loyalty.
He expressed optimism that in the coming years when the company fully settles down, shareholders would be given an encouraging cash reward.
“The payment for the year was to reward the loyalty of shareholders, we are still in the foundational stage of our acquisition. We expect to pay our shareholders with less disappointing dividend in the future,” Mr Adeosun explained.
In 2019, a company known as Ignite Investments and Commodities Limited owned by Mr Abdulwasiu Sowami acquired a 74.02 per cent equity stake in Forte Oil Plc from Mr Femi Otedola.
Last year, which was the first full year after the transaction, the operations of Ardova were impacted by the COVID-19 pandemic.
However, the firm managed to grow its earnings by 2.9 per cent year-on-year on the back of a 3.4 per cent growth in the fuels business (constituting 90 per cent of revenue), high margins on lubes sales (9 per cent of revenue) as well as the transport and logistics business (constituting 0.2 per cent of the group revenue).
Also, the gross profit margin improved to 6.7 per cent compared to 6.4 per cent in the prior period, reflecting the increased earnings-generating capacity of the business.
In the year, operating expense declined by 13.4 per cent amidst inflationary pressure and an inflation rate of 15.75 per cent in December 2020.
But in the 2021 fiscal year, Ardova said “Our focus will be to capitalise on the milestones achieved in 2020.
“We will further improve operational efficiency across our key strategic transformational themes of future-proofing our business, connecting with our people, engaging with customers and stakeholders while enhancing value for investors.”
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The oil market settled lower on Wednesday as investors weighed US economic growth and assessed the risk of supply disruptions from Venezuela and Russia.
Brent crude futures depleted by 14 cents or 0.2 per cent to close at $62.24 a barrel and the US West Texas Intermediate (WTI) crude futures declined by 3 cents or 0.05 per cent to $58.29 per barrel.
US data showed the world’s largest economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending and a sharp rebound in exports.
The stronger-than-expected increase in gross domestic product last quarter, which was reported by the Commerce Department on Tuesday, showed gross domestic product (GDP) increased at a 4.3 per cent annualized rate last quarter, the fastest pace since the third quarter of 2023.
Still, Brent and WTI prices are on track to drop about 16 per cent and 18 per cent, respectively, this year, their steepest declines since 2020 when the COVID pandemic hit oil demand, as supply is expected to outpace demand next year.
On the supply side, disruptions to Venezuelan exports have been the most significant factor pushing up oil prices, while market analysts noted that Russian and Ukrainian attacks on each other’s energy infrastructure have also supported the market.
Recently, Ukraine launched a drone strike on a Russian shadow fleet vessel in the Mediterranean. The country has been attacking Russian oil refineries throughout 2024 and 2025, but has visibly widened its campaign in recent weeks, striking oil rigs in the Caspian Sea and claiming credit for sea-drone attacks on three tankers in the Black Sea.
Russian President Vladimir Putin, who ordered a full-scale invasion of Ukraine in February 2022, has threatened to sever Ukraine’s access to the Black Sea in response to the attacks on tankers, which he regards as piracy.
In Venezuela, loaded vessels are waiting for new directions from their owners after the US seized the supertanker Skipper earlier this month and targeted two additional vessels over the weekend.
Reuters reported that oil shipments from Kazakhstan via the Caspian Pipeline Consortium are set to drop by a third in December to the lowest since October 2024 after a Ukrainian drone attack damaged facilities at the main CPC export terminal.
The American Petroleum Institute (API) estimated that crude oil inventories in the US saw a build of 2.4 million barrels in the week ending December 19. Crude oil inventories shrank by 9.3 million barrels in the week prior. The US Energy Information Administration (EIA) is due to release official inventory data on Monday, later than usual due to the Christmas holiday.
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