For its Q1’21 operations, Ardova Plc reported a 50% y/y increase in revenue from ₦41.61 billion to ₦62.9 billion, coming in ahead of our estimate (Vetiva: ₦56.22 billion). Amid the debut of Enyo retail, the company witnessed improved sales volumes from its fuel business, as well as its lubricants segments and this drove excellent topline performance for the company. Turnover from the company’s fuel operations was up 48% y/y, while the lubricants segment posted a 50% growth y/y. Spea...
Ardova recently released its H1’21 results with revenue declining marginally by 1% y/y from ₦87.3 billion, to ₦86.8 billion, a 2% variance from our estimate. However, a 2ppt y/y improvement in gross margin, as well as better cost efficiency drove after tax profit 76% higher y/y to ₦1.8 billion (Vetiva estimate: ₦1.7 billion). On a quarterly basis, it was able to grow revenue by 27% y/y from ₦35.3 billion in Q2’20 to ₦44.8 billion in Q2’21, on the back of improved demand, as economic activi...
Ardova Plc recently released its Q1 results, revealing a 20% y/y fall in revenue to ₦41.6 billion (Vetiva: ₦54.5 billion), which was largely a reflection of a 23% y/y decline in fuel revenue. However, a 2ppt y/y improvement in gross margin as well as better cost management drove after-tax profit 71% higher y/y to ₦850 million (Vetiva: ₦514 million). Following Ardova’s Q1 performance, we revise our expectations for the company and project a 5% growth in revenue to ₦190.9 billion, while we expect ...
Ardova Plc recently released its H1’20 results, with revenue growing 5% y/y to ₦87.3 billion, 2% below our estimate. However, after-tax profit fell 81% y/y to ₦1.0 billion (for context, we note that one-off income lines such as subsidy-related income and gains from asset disposal boosted H1’19 earnings after tax to ₦5.5 billion). On a quarterly basis, Ardova’s topline dipped 12% y/y to ₦35.3 billion, as the coronavirus-induced lockdowns in Lagos and a few other states in April weighed on...
Oil prices have been volatile since the start of the third quarter, driven by demand-inclined factors and unprecedented disruptions in world supply. In early August, Brent price plunged to a seven-month low of $57/bbl, after escalating trade tensions between Washington and Beijing intensified concerns over slowing oil demand. Meanwhile, in mid-September, a short-lived surge drove Brent price to a peak of $70/bbl, after attacks on Saudi’s oil infrastructure drained about 5.7 mb/d—5% of world cru...
Group turnover slides q/q FO’s fuel business reported a turnover of ₦35.9 billion (-6% q/q) in Q2’19, underperforming our estimate of ₦37.2 billion. The q/q drop in fuel revenue, we believe, was driven by lower petroleum products supplies by the NNPC, as other top players (notably Total Nigeria Plc and 11 Plc) in the downstream industry reported declines in Q2 fuel sales. Given the industry trend of a weaker fuel sales in Q3, we expect a marginal decline in fuel revenue to ₦35.7 billion in...
Nigeria H2'19 Outlook - Feeble feet on thorny grounds Narrow opportunity window amid easing global monetary conditions: A sense of urgency is required for Nigeria to derive optimal benefits from the sudden increase in global liquidity conditions occasioned by the switch to accommodative monetary policy by central banks in developed markets. IMF projections indicate, that global GDP growth could ease to 3.3% for FY’19 due to weaker growth in the...
ECB ends quantitative easing program Mario Draghi, President of the European Central Bank (ECB), formally announced the end of the Bank's Quantitative Easing (QE) program at yesterday’s meeting. Going into 2019, the European apex bank will end net purchases under the Asset Purchase Program (APP) for the first time in four years but would continue to reinvest the principal payments of maturing instruments, even when the ECB begins to raise intere...
Quarter gets off to bad start with all red closes The fourth quarter got off to a bearish start as the market shed 12bps on Friday to close out the week 117bps down. Trading was mostly negative today despite an even split between gaining and losing sectors. The Banking sector (w/w: -65bps) capped off the week with a 147bps loss on the day no thanks to losses in heavyweights, ZENITHBANK (d/d: -379bps; w/w +23bps), GUARANTY (d/d:-95bps; w/w:-41bps),...
T-bill yields rise as CBN increases liquidity mop ups The Central Bank of Nigeria has increased the spate of OMO auctions, conducting three in the past four sessions, compared to four in twenty-one sessions in August. Furthermore, the stop rate on the longest tenor on offer (c.182DTM) has risen from 12.15% at the first auction in that sequence to 12.50% more recently. As a result, yields on T-bills have advanced in recent sessions despite he...
CBN encourages Yuan transactions post currency swap Following the Central Bank of Nigeria’s (CBN) $2.5 billion currency swap transaction with the People’s Bank of China (PBOC) in May 2018, CBN officials held a town hall meeting on Wednesday in Lagos to introduce the benefits of its recent swap ahead of plans to start auctioning the Chinese currency later in July. The apex bank is attempting to sway local businesses importing goods from China to us...
Decent Q1’18 numbers, plans to divest subsidiaries FO’s Q1’18 numbers were quite decent, beating our estimates across most line items. Meanwhile, the mixed performance across the company’s business segments persisted in Q1’18. Despite reporting an impressive 14% y/y increase in Revenue to ₦25.8 billion (Vetiva: ₦20.7 billion), the Fuel Retailing segment (largest segment – accounts for 65% of group revenue) reported a 29%...
FO released its FY’17 results last week, reporting stronger y/y earnings growth for the Group despite mixed performances across its four business lines. Constrained by tough operating environment in the petroleum downstream sector, the company’s flagship Fuel Retailing segment (largest segment – accounts for 61% of revenue) reported a 36% y/y decline in Revenue to ₦78.8 billion, 6% worse than we expected. Revenue for the Production Chemicals segment (smallest segment – accounts for c.1% of rev...
Diversified model shields earnings, PAT up 81% y/y Despite posting a 20% y/y drop in 9M’17 revenue to ₦96.9 billion, FO reported a 23% y/y growth in 9M’17 EBIT to ₦9.7 billion, lagging our estimate by 22%. The y/y growth came amidst mixed performances across FO’s four business lines. Performance of the company’s flagship Fuel Retailing segment (63% of revenue) remained subdued on persistent product sourcing challenges wi...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.