High operating Cost Forces Ardova Plc To Declare N3.85bn Loss Despite Take-Over Of Rival Company, Enyo

Ardova Plc, a company formerly owned by billionaire businessman Femi Otedola has declared a net loss of N3.85bn in 2021.

The energy firm’s financial woe is coming despite acquiring one of the country’s fastest growing retail oil firms, Enyo Retail, in November 2021.

Enyo which was established in 2017 had in April 2022 unveiled its 95th filling station before Ardova completed the execution of a share purchase agreement to acquire a 100 per cent equity stake in Enyo.

Ardova is an energy company involved in the distribution of petroleum products with presence across the country.

The company is controlled by Prudent Energy and Services owned by Abdulwasiu Sowami following the purchase of 75 per cent shares in 2009.

In 2020 during the Covid-19 era, the company posted a revenue of N 181.9bn and a profit of N1.85bn in 2020.

In 2021, the company’s financial statement revealed that revenue grew to N201.4bn in 2021 from N181.9bn in 2020.

However, Ardova Group lost N3.85bn by the end of 2021, the group said.

Consequently, “there was no dividend declared in this period,” Ardova said.

The company took a major step to incorporate AP LPG Limited on 22 March 2021, an energy company in Nigeria involved in the business of processing, storage, and trade in Butane, Propane, Liquefied Petroleum Gas (LPG), Liquefied Natural Gas (LNG).

Also, the company incorporated AP Renewables Limited to venture into any form of renewable energy business.