Economy
Ardova’s Free Cash Flow to Remain Relatively Sound
By Modupe Gbadeyanka
A Nigeria-based credit rating agency, Global Credit Ratings (GCR), has noted that the free cash flow of Ardova Plc (formerly Forte Oil) is “expected to remain relatively sound in the short term.”
In a statement on Monday, it said since the 2019 financial year, there has been a significant improvement in the energy company’s “cash flow coverage of external debt” due to the deleveraging and realisation of petroleum subsidy receivables.
In the statement, GCR said it has affirmed the long term and short term national scale ratings assigned to Ardova at A-(NG) and A1(NG) respectively and then concurrently affirmed its issue rating of A-(NG) with a stable outlook.
GCR noted that the company maintains a leading position in the Nigerian downstream oil industry, underpinned by the continued expansion of its national retail market share, a strong asset base and control of key facets of the value chain; factors which continue to support the ratings.
According to the rating firm, since the divestment of its subsidiaries in 2018, the revenue has grown strongly as a result of robust fuel volumes traded.
“GCR, however, notes the limited product diversification, with other segments outside of fuels (specifically Premium Motor Spirit) still negligible.
“GCR expects some contraction in the top line in FY20 due to the impact of COVID-19 on the broader economy, although the volume constriction is expected to be relatively short-lived, due to the essential nature of petroleum products,” the statement said.
“Industry margins continue to contract, due to the tight price regulation of the dominant product, which together with the variability of profits through the cycle, constrains our view of the earnings profile.
“Margin pressure could be exacerbated by price volatility upstream as rising global demand translates to stronger oil prices.
“That said, the ability to directly import refined products potentially provides Ardova headroom for margin enhancement.
“GCR will continue to assess the Company’s ability to enhance cost efficiency and improve the earnings contribution of higher-margin product offerings,” it added.
It stated that following N16 billion debt repayments, mostly from the proceeds of the divestment of its other businesses, the company’s gross debt reduced to N5.3 billion in FY19 from N18.3 billion previously, with a relatively even mix of short- and long-term maturities.
Consequently, gross and net debt to EBITDA strengthened to 118.4 per cent and 87.8 per cent respectively in FY19 from 398.7 per cent and 387.5 per cent in FY18.
“Ardova attained a net ungeared position in 1Q FY20 on the back of high unutilised cash holding, indicating sufficient headroom to take in new debt if required.
“The series 1 bond will mature in December FY21, with GCR expecting that internal cash will be sufficient to meet maturing obligations,” the statement said.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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