Economy
Ardova Unsure of Paying Dividend to Shareholders in FY2020
By Dipo Olowookere
The Chief Executive Officer (CEO) of Ardova Plc, Mr Olumide Adeosun, has hinted that shareholders of the company may not receive a dividend in the current 2020 financial year.
Mr Adeosun made this disclosure last Thursday when he engaged members of the investing community at a virtual Facts Behind the Figures (FBF) hosted by the Nigerian Stock Exchange (NSE).
The event was put in place by the exchange to allow companies on its trading platform present their financial performance, strategic and operational developments, and future plans to the capital market community.
During the event, which had Business Post as one of the participants, Mr Adeosun said the board and management were still monitoring events and would review the company’s overall performance at the end of the year before taking a decision on the cash reward to investors.
However, he pointed out that last year, the company, while still operating as Forte Oil, paid a dividend to its shareholders and this was an interim dividend of N1.15 for the period ended March 31, 2019.
In June 2019, business mogul, Mr Femi Otedola, completed the sale of Forte Oil to another businessman, Mr Abdulwasiu Sowami, who is the Chairman of Ignite and Chief Executive of Prudent Energy Services Limited. The deal was worth about N65 billion.
After the sale of his entire 982,971,950 ordinary shares of 50 kobo each to the new owners, Ignite Investments and Commodities Limited, at N66.01 per unit, shareholders, at an Extraordinary General Meeting (EGM) held on Tuesday, December 17, 2019, in Lagos, approved the name change of the company to Ardova Plc.
At last Thursday’s event, the CEO said, for now, the firm was making efforts to deliver more value to investors by moving from being an oil company to becoming an integrated energy company.
“In line with our vision of being the most reputable African energy solution brand, committed to driving the continent’s growth, we will leverage innovative technology and commit strongly to delivering superior customer experience.
“In the second half of 2020, our focus will be on: operational efficiency, building a superior customer experience, innovation, and partnerships,” he said.
In his presentation, the Executive Director, Finance and Risk Management, Ardova Plc, Mr Moshood Olajide, stated that in the second quarter of this year, the company grew its gross margin significantly to 7.3 per cent from 5.4 per cent in Q1:2020 and from 6.3 per cent in the corresponding period in 2019.
“This sterling performance in gross margins reflects our resolve to maximise our core earnings and minimize cost.
“Shareholders’ funds also grew by 5.8 per cent YTD to N17.5 billion in H1:2020 (N18.6 billion FY: 2018) as a result of an 11.5 per cent growth in retained earnings.
“Our gearing ratio also improved to 37.8 per cent in H1:2020 compared to 88.6 per cent while our earnings-generating capacity remained sufficient to cover existing debt/borrowing with normalised interest cover printing at 4.3x in H1:2020 relative to 0.7x in H1:2019,” Mr Olajide said.
By Dipo Olowookere
The Nigerian equity market showed no signs of slowing down, as it further appreciated by 1.30 per cent on Friday on the back of sustained buying pressure.
Unlike the preceding sessions, investor sentiment was bullish yesterday after the Nigerian Exchange (NGX) Limited ended with 43 price gainers and 26 price losers, implying a positive market breadth index, the first this week.
UPDC gained 10.00 per cent to close at N4.40, Academy Press also appreciated by 10.00 per cent to quote at N7.70, Haldane McCall improved by 9.97 per cent to N3.97, Zichis soared by 9.94 per cent to N15.60, and Wema Bank added 9.84 per cent to settle at N31.25.
Conversely, Meyer lost 9.92 per cent to sell for N16.80, Trans-Nationwide Express also crashed by 9.92 per cent to end at N7.90, C&I Leasing slipped by 8.53 per cent to N5.90, Omatek dipped by 7.34 per cent to N2.02, and eTranzact decreased by 5.28 per cent to N17.05.
When the bourse closed its doors to business, the All-Share Index (ASI) rose by 2,884.81 points to 225,722.49 points from 222,837.68 points, and the market capitalisation grew by N1.858 trillion to N145.335 trillion from N143.477 trillion.
A look at the activity chart showed that market participants transacted 627.6 million shares worth N44.5 billion in 55,232 deals during the trading day compared with the 667.9 million shares valued at N38.1 billion traded in 53,062 deals a day earlier.
This indicated that the volume of transactions went down by 6.03 per cent, the value of trades went up by 16.80 per cent, and the number of deals jumped by 4.09 per cent.
Access Holdings closed the session as investors’ toast, with a turnover of 75.6 million units worth N2.4 billion. UBA transacted 43.1 million units valued at N2.3 billion, Wema Bank exchanged 41.5 million units for N1.3 billion, Zenith Bank traded 38.4 million units valued at N5.2 billion, and Universal Insurance sold 29.5 million units for N35.9 million.
By Aduragbemi Omiyale
Mr Taiwo Oyedele has set some goals he intends to achieve as Nigeria’s Minister of Finance and Coordinating Minister of the Economy.
While taking over from his predecessor, Mr Wale Edun, on Thursday, the tax expert assured that he has no plans to overturn some of the reforms already put in place by the former occupier of the seat.
In a message on Friday, he emphasised that, “Our immediate task is to consolidate these gains, deepen ongoing reforms, and ensure they translate into tangible benefits for all Nigerians.”
He promised to ensure fiscal discipline by embracing transparent and prudent management of public resources, while also harmonising revenue administration, broadening the tax base, reducing the burden on the vulnerable population, and supporting economic growth.
Mr Oyedele further said his other strategic priorities include creating a predictable and investor-friendly environment anchored on policy coherence, consistency, and clarity; and aligning efforts across all tiers and institutions to maximise policy impact.
He also said efforts would be made to deepen collaboration with the private sector and other key stakeholders for data-driven policy design, co-implementation, and feedback for continuous improvement.
According to him, “Good policy design alone is not enough; success will be defined by execution. We are committed to disciplined implementation, accountability, and measurable results.”
“I look forward to working with colleagues across government, the private sector, and all Nigerians as we move from reform to result, accelerate growth and build a more stable, inclusive, and prosperous economy,” he stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further appreciated by 0.23 per cent on Thursday, April 23, with the Unlisted Security Index (NSI) adding 8.99 points to close at 3,969.96 points against the previous day’s 3,968 points.
The rise in the share price of Central Securities Clearing System (CSCS) Plc by N2.86 to N69.34 per unit from N66.48 per unit raised the market capitalisation of the NASD bourse by N5.38 billion to N2.380 trillion from N2.375 trillion.
Yesterday, there were two price losers, led by Food Concepts Plc, which lost 29 Kobo to sell at N2.65 per share versus N2.94 per share, while UBN Property Plc dipped by 22 Kobo to N2.03 per unit from N2.25 per unit.
During the session, the volume of securities traded declined by 97.9 per cent to 451,522 units from 21.5 million units on Wednesday, the value of securities depreciated by 52.32 per cent to N23.6 million from N49.5 million, and the number of deals depreciated by 3.6 per cent to 27 deals from 28 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.5 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn