Ardova Plc 9M’20 – Expansion drive to yield benefits amid deregulation

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In its recently released 9M’20 results, Ardova Plc grew its revenue by 4% to ₦128.2 billion (Vetiva estimate: ₦139.7 billion).

Although net income (₦1.9 billion) for the nine-month period was lower than ₦5.3 billion reported for 9M’19, it indicated a marked improvement from a 9M’19 normalised loss after tax of ₦1.9 billion after adjusting for the normalised effects of one-off items.

In its recently released 9M’20 results, Ardova Plc grew its revenue by 4% to ₦128.2 billion (Vetiva estimate: ₦139.7 billion).

Although net income (₦1.9 billion) for the nine-month period was lower than ₦5.3 billion reported for 9M’19, it indicated a marked improvement from a 9M’19 normalised loss after tax of ₦1.9 billion after adjusting for the normalised effects of one-off items.

Following the implementation of softer lockdown measures in Q3, improved demand for petroleum products saw fuel sales rebound 15% q/q to ₦36.5 billion, although flat y/y as demand remains relatively weaker compared to a year ago.

Also, gross margin in fuel operations jumped c.3ppts y/y to 7%, largely a reflection of Premium Motor Spirit (PMS) deregulation.

Similarly, Ardova’s lubricant business posted an impressive growth of 21% q/q, reverting to a pre-pandemic level of ₦4.3 billion (Vetiva estimate: ₦4.1 billion).

That said, Ardova’s aggregate revenue for Q3 came in flat y/y at ₦40.9 billion.” “In its recently released 9M’20 results, Ardova Plc grew its revenue by 4% to ₦128.2 billion (Vetiva estimate: ₦139.7 billion).

Although net income (₦1.9 billion) for the nine-month period was lower than ₦5.3 billion reported for 9M’19, it indicated a marked improvement from a 9M’19 normalised loss after tax of ₦1.9 billion after adjusting for the normalised effects of one-off items.

Following the implementation of softer lockdown measures in Q3, improved demand for petroleum products saw fuel sales rebound 15% q/q to ₦36.5 billion, although flat y/y as demand remains relatively weaker compared to a year ago.

Also, gross margin in fuel operations jumped c.3ppts y/y to 7%, largely a reflection of Premium Motor Spirit (PMS) deregulation.

Similarly, Ardova’s lubricant business posted an impressive growth of 21% q/q, reverting to a pre-pandemic level of ₦4.3 billion (Vetiva estimate: ₦4.1 billion). That said, Ardova’s aggregate revenue for Q3 came in flat y/y at ₦40.9 billion

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