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Half Year 2020Investor & Analyst Presentation
For the six months ended 30 June 2020
August 2020….energy for a brave new world 1
Olumide Adeosun
2
Olumide Adeosun
Chief Executive Officer – Ardova Plc
….energy for a brave new world
Disclaimer
The material in this presentation has been prepared by Ardova Plc and is general background information about Ardova Plc activities as at the date of this presentation.
This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be
considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments
and does not consider your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the
information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product
or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international
transactions, currency risk.
This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Ardova Plc businesses
and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned
not to place undue reliance on these forward-looking statements.
Ardova Plc does not undertake any obligation to publicly release the results of any revisions to these forward-looking statements to reflect events or circumstances after
the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a
materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Ardova Plc control. Past performance is
not a reliable indication of future performance.
3
4
In this Presentation
Governance
Company Profile
Operational Highlights10
Strategic Outlook
Financial Highlights
Appendix26
Our People
People -First
Company
We are building for
the future, a
people- first
oriented and star
service company
5strictly confidential
Company Profile
Five decades of
history and legacy
Our long and proud legacy
gives us a vantage position from where we
can see things differently about how energy is
consumed today
Ardova Plc is a leading indigenous, integrated energy company in Nigeria involved in marketing of petroleum products
1964Incorporation
As British Petroleum
(Nigeria)1978
Indigenization:
1979Name Change
To African Petroleum
Limited (AP)2000
Privatization
NNPC sold 40% to
the Nigerian public
2005NNPC buys equity
stake and increases
interest by converting
A P debt
2007New Era:
Zenon Petroleum, led byMr Femi Otedola acquires majority
interest from NNPC ushering in
a new era.
2010-11Rebrand:
To Forte Oil with new
management and 3-year
turn-around program
2012-15Transformation program result
Origins and key
historical milestones
From its incorporation
as British Petroleum
(Nigeria) in 1964,
Ardova Plc (AP)has
emerged the energy for
a brave new world, a
publicly listed and
widely renowned
corporation with one of
the fastest growing
business portfolios
within the energy
sector
Profits up by 342%.Acquired 4 1 4 mw Thermal IPP Resumed
dividend payments, capitalre-organization
2016-18New FrontiersConsolidated growth,
build resilience and
entrench best practices
2019
New Acquisition
Ignite investments and
commodities Ltd concludes
acquisition of 74 .0 6% equity
stake in Forte Oil Plc’s
downstream operations.
2019-20Energy for a Brave New
World
To Ardova Plc (AP)
NNPC acquires 60%
stake, with Nigeria
public buying 40%
6
Strategic Rationale for the Acquisition
Optimise
fuels value chainWiden distribution
network
Leverage
revenue & cost synergies
Consolidate
Market Share
Combined Synergistic Impact
A C DBImproved Working Capital
management and access to
fuels value chain on better
commercial terms.
Boosts market share in the
retail space and consolidate
its position as the dominant
marketer of petroleum
products in Nigeria
Parent company and Ardova
continue to run as separate
entities and exploit synergy
and opportunities while
moderating cost
Exponentially increase
number of distribution channels nationwide
Ardova Plc is a leading
indigenous, integrated
energy company in
Nigeria involved in
marketing of petroleum
products
Operating assets create platform for accretive revenue
450+ Retail Outlets
3 PMS storage depots with 50million liters
capacity
4 domestic and 1 international aviation depots
with 15 million liters storage capacity
Access to 1,441
Distribution
fleet
6million liters,mt
bitumen storage
capacity
LOBP with 30,000 (mpta) capacity
Access to
6,000mt LPG
plant at Oghara
Well diversified business segment across (4) units
Fuels Lubricant &Greases
Renewables
& clean energy
74% Stake Acquisition through
Ignite Investment Ltd
Our vision is to be Africa’s energy
solutions provider of choice.
Committed to driving the
continents growth and
transformation
Ardova’s mission is to become the
catalyst for energy sufficiency in
Africa, opening new vistas that
directly empower and impact the
individual customer, our
communities, stakeholders and
investors positively
Building the most reputable African energy company through formidable partnership
Specialties (Bitumen)
7
Our People
People -First
Company
We are building for
the future, a
people- first
oriented and star
service company
8
Governance
People-first
Company
We are building for the
future, a people-first oriented and star service
company
AbdulWasiu O. Sowami
Chairman
Moshood Olajide
Executive DirectorFinance & Risk Management
Mohammed Aminu Umar
Non-Executive DirectorOlusola Adeeyo
Independent Non-Executive Director
Olumide Adeosun
Chief Executive Officer
“Ardova Plc is led by a formidable team with unrivalled level of excellence and experience spanning the Oil & Gas, Finance, Banking and Legal sector”
Key driver for success is through investment in technology and exceptional service delivery across the energy value chain
Anlola Durosimi- Etti
Independent Non-Executive Director
People-first oriented and star service company with sound management in place to deliver a holistic brand vision
* Refer to appendix for profile of Board of Directors 9
Our People
People -First
Company
We are building for
the future, a
people- first
oriented and star
service company
10
Operational
Highlights
Helping the
Economy take flight
We understand our place in the
life of an economy. This drives our commitment to service
delivery. We are an energy service brand that believes
energy sufficiency will help the economy take flight
1.50 1.81 2.38 2.01 1.94 2.28 2.551.9
-3.5
11.2 11.3 11.4 11.3 11.2 11.211.9 12.3 12.6
Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20e
GDP rate Inflation rate
INCREASED PRESSURE AND DECLINING YIELDS ON INVESTMENT SECURITIES
0
5
10
15
20
Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20
NIBOR Tbills - 91days Tbills - 182days Tbills - 1year Bond - 3years
OPEC+ CUT ON OIL PRODUCTION IMPACTS PRODUCTION VOLUME
%
3
305 306 307 306 306 307 307
360 360
362 361 363 360 361 360 360
415
452
366 361 359 360 361 362 365386 386
Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20
CBN Rate Parallel Market NAFEX
47.79 44.31 43.12 44.42 45.07 41.85 38.59 35.26 36.18
79.44 81.72 69.78 68.39 66.55 60.78 68.16 22.74 41.71
1.7 1.7 1.8 1.71.9 1.9 1.9
1.8
1.5
Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20
External reserve (USD billion) Crude oil price (USD/pb) Crude oil production (mbpd)
SLOWDOWN IN GROSS DOMESTIC PRODUCT RATE AMIDST RISING INFLATION
TECHNICAL DEVALUATION OF THE NAIRA IMPACTS FOREIGN EXCHANGE DEMAND
Challenging operating environment in the first half of the year with major headwinds from COVID-19 and falling crude prices as major triggers
*Source: CBN, OPEC
Report, FMDQ, NBS
11
• Traders unable to travel to China, Dubai or
other countries to stock up causing
inventory build up with expiry dates
approaching
• Daytime heat affects fresh produce.
Curfews imposed on traders make it
difficult to transport perishables such as
meat at night
National Impact Global Impact
• Increased discretionary income for
the recently employed. US likely to
record a growth in personal
consumption expenditures
• 2nd outbreak of infection recorded
in China and Australia due to
increased international travels and
resumption of activities
• Brent crude oil increases to over
$40/barrel due to massive output
cuts
Ardova Plc Impact
• FG removal of fuel price cap coupled
with new PMS prices make for
attractive margins in the immediate
term
• Airports re-opening worldwide
enables revenue earnings from ATK
and the kickoff International supply
partnerships
• Bleak outlook within the oil sector
creates headroom for AP to ramp
ramp up diversification efforts to
become frontliners in the renewable
energy space
18 263 542 global confirmed cases
• Recovery of oil prices as OPEC cuts output
but accumulated inventories from previous
months will force the prices downward or
place a cap on the current trajectory
• New cases of COVID in oil producing
countries like Brazil (2nd highest number of
deaths) sparks concerns into the future of
oil markets
Border Closures and
Imposed CurfewsOil Price Recovery
• Slow recovery predicted for the airline
sector as operations re-commence. IATA
estimates a 50% decline in passenger
revenue
• Significant reduction in traffic volume will
affect credit profile and competitive stance
of airlines
Airline Operations
Impact
✈Triggers
• Increased inflow of economic
contributions by migrants and diaspora
• As airlines re-commence activities, a surge
in infection rates is likely to mount more
pressure on health spending , compound
Nigeria’s debt portfolio and cause a
further drop in domestic demand
• PPPRA increased petrol prices between
N140.80 to N143.80 to reflect the recent
change in direction of the global crude
market
COVID-19 and worldwide easing of
Lockdown
Increased compliance to OPEC+
production output (9.7mbpd) cut in
June
Job gains of 4.8 million in June as US
unemployment drops to 1.1%
Reduction in oil supply due to OPEC
cuts
Olumide Adeosun
13
Moshood Olajide
Executive Director
Finance & Risk Management – Ardova Plc
….energy for a brave new world
Financial Highlights
14
Sustainable
Earnings
20% of our revenue over
the next three years will come from low carbon
and renewable sources. We are confident in our
brands ability to deliver
8.4%
Key Performance Ratios
6.4%Gross Profit MarginOperating Margins
Returns & Operational Efficiency
Cash flow &Leverage
H1 2020 H1 2019
Gross margins was driven largely by the fuels and lubricant business
2.2%2.8%Operating Margin1
-1.4%2.6%Profit Margin2
6.7%6.1%
1.0%1.7%
1.2%
6.7%
-3.4%13.0%Return on Average Equity3
Adjusted return on average equity reflects robust operational efficiency drive
1.0%7.2%Return on Average Asset4
5.1%Operating Cost/Revenue
88.6%
0.7x4.3xInterest Cover4
37.8%Gearing Ratio
Significant improvement in operating efficiency amidst inflationary pressure
Operating margin performance was primarily driven by efficiency drive with a 20% reduction in operating expense
Profit margin normalizing for one off items reflect resilience and sterling growth in profitability
Core asset optimization results in profitable returns
Earnings sufficiently covers borrowing cost
Well optimized capital structure with low gearing ratio
1 Operating margin is normalised and adjusted for one off items (recognition of subsidy and asset disposal) in H1 20192 Profit margin is normalised and adjusted for one off items (recognition of subsidy and asset disposal) in H1 20193 Return on average equity is normalised and adjusted for one off items (recognition of subsidy and asset disposal) in H1 20194 Return on average asset is normalised and adjusted for one off items (recognition of subsidy and asset disposal) in H1 20195 Interest cover is normalised and adjusted for one off items (recognition of subsidy and asset disposal) in H1 2019
15
Gross margin improved significantly in the second quarter of the year, a testament to our drive to optimize core earnings
5.4%7.3%
Q1 20 Q2 20
Quarterly Gross Margin
• Gross margin grew significantly in
the second quarter to 7.3% in Q2
2020 from 5.4% in Q1 2020 and
from 6.3% in the corresponding
period in 2019
• This sterling performance in gross
margins reflects our resolve to
maximise our core earnings and
minimize cost
• Our margin performance in Q2 2020
was driven by a 33.6% reduction in
cost of sales from Q1 2020 as well as
a 13.3% reduction in cost of sales in
the corresponding quarter in 2019
SIGNIFICANT IMROVEMENT IN GROSS MARGINS (%) IN Q2 2020
16
6.3%
7.3%
Q2 19 Q2 20
Quarterly Gross Margin
35.2%15.9%
GROSS PROFIT N’BILLION
2.78 2.55
Q1 20 Q2 20 H1 20Q1 20 Q2 20 H1 20
5.30
Significant growth in profitability by 487% adjusting for the one of items and (loss) incurred in half year 2019
61.82 82.78 87.31
H1 18 H1 19 H1 20
Gross Revenue
1.1%
-1.4%
1.2%
3.3%
1.0%
1.7%
H1 18 H1 19 H1 20Profit Before Tax Margin Operating Margin
• Revenue grew by 5.5% y-o-y, to₦87.3billion in H1 2020 (N82.7
billion H1 2019). The growth in
revenue was primarily driven by 7%
growth in the fuels business
constituting 91% of revenue. The
lubricant business constituting 9.% of
total revenue also contributed to
revenue performance
• In the first half of 2020 Operating expense declined by 20% reflecting
our consistent drive to improve
operational efficiency and maximise
returns
• Adjusting for the one-off items
(accrued interest on subsidy and
disposal of assets Profit before tax increased significantly by 498% to ₦1.2 billion in H1 2020 (₦ (0.3)
billion in H1 2019)
• Similarly, profitability margins pitched in higher at 1.7% and 1.2%
respectively
GROSS REVENUE OF > N87.3BN
CAGR:
12.2%
CAGR:
40.6%
31%
Y-o-YGrowth
PROFIT AFTER TAX > N1.0BN
5.5%
Y-o-YGrowth
PROFIT BEFORE TAX > N1.2BN
0.66
(0.29)
1.17
H1 18 H1 19 H1 20
498%
Y-o-YGrowth
CAGR:
21.0%
STERLING GROWTH IN PROFITABILITY MARGINS1
Profit After Tax normalizing for one-off items in (H1: N0.29billion) 2019 grew by 498% to N1.17billion
Profit After Tax
normalizing for one-off
items in (H1: N(1.1)billion)
2019 grew by 186% to
N1.01billion
17
0.36
(1.10)
1.01
H1 18 H1 19 H1 20
186%
Y-o-YGrowth
1 Operating margin is normalised and adjusted for one off items (recognition of subsidy and asset disposal) in H1 2019
Resilient balance sheet with a well optimised capital structure
15.14 17.55 18.56
FY 18 FY 19 H1 20
0.95 1.13 4.30
FY 18 FY 19 H1 20
Interest Cover
• Shareholders fund grew by 5.8% y-
t-d, to N17.5 billion in H1 2020
(N18.6 billion FY2018) as a result of a
11.5% growth in retained earnings.
• Cleaner balance sheet and well
optimized capital structure with
gearing ratio improving to 37.8% in
H1 2020 compared to 88.6%
achieved in corresponding period
• 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
• Total assets dipped 3.2% y-t-d to
N45.3billion majorly driven by a
35.8% decline in intangible assets
SHAREHOLDER FUND > N17.5Billion
60.73 47.02 45.34
FY 18 FY 19 H1 20
31%
Y-t-DGrowth
TOTAL ASSET > N45.3Billion
8%
353%
Y-o-YGrowth
IMPROVED GEARING RATIO BUILDS STRONG CAPITAL STRUCTURE
136.8% 34.6% 37.8%
FY 18 FY 19 H1 20
REVENUE LINES SUFFICIENT TO COVER BORROWING COST
3.2%
18
Analysis of products by volume of sales
554,680,485
42,354,738
8,042,101 9,920,883 281,480 697,075 48
PMS - Premium Motor
Spirit
AGO - Automotive Gas Oil ATK - Aviation Turbine
Kerosene
Lubes DPK - Dual Purpose
Kerosene
Liquified Petroluem Gas |
Cylinder
Solar
H1 2020
H1 2019
28.2% 29.6% 37.7% 11.9% 83.7%100% 100%y-o-y
Volume of sale
432,691,398
60,164,212
5,841,622 11,263,352 - - 295
PMS - Premium Motor
Spirit
AGO - Automotive Gas Oil ATK - Aviation Turbine
Kerosene
Lubes DPK - Dual Purpose
Kerosene
Liquified Petroluem Gas |
Cylinder
Solar Home System
Volume of sale
Litres
Litres
Aggregate Volume of 615.9 million in
H1 2020 Growth of 20.8% y-o-y
Aggregate Volume of 509.9 million in H1
2019
New product line
19
Gained market share and ranked 1st in Premium Motor Spirit (PMS) sales volume compared to peers
MARKET SHARE OF PREMIUM MOTOR SPIRIT (PMS) (% VOLUME) MARKET SHARE OF AUTOMOTIVE GAS OIL (AGO) (% VOLUME)
1. Source: MOMAN Market share is an aggregate of volume of sale of the top (6) quoted downstream oil and gas players
MARKET SHARE OF LUBES (% VOLUME) MARKET SHARE OF AVIATION TURBINE KEROSENE (% VOLUME)
3.2%
3.8%
10.3%
11.0%
23.0%
48.8%
Peer 5
Peer 4
Peer 3
Ardova
Peer 2
Peer 1
4.6%
5.3%
9.2%
9.6%
18.3%
53.0%
Peer 5
Peer 4
Peer 3
Peer 2
Ardova
Peer 1
H1 2019 (% volume) H1 2020 (% volume)
3.3%
3.9%
8.3%
21.8%
23.8%
38.9%
Peer 5
Ardova
Peer 4
Peer 3
Peer 2
Peer 1
6.2%
6.8%
15.6%
21.0%
25.1%
25.4%
Peer 5
Ardova
Peer 4
Peer 3
Peer 2
Peer 1
H1 2019 (% volume) H1 2020 (% volume)
7.0%
9.3%
18.8%
20.0%
21.3%
23.6%
Peer 6
Peer 5
Ardova
Peer 3
Peer 2
Peer 1
6.5%
8.6%
18.4%
19.8%
20.0%
26.7%
Peer 6
Peer 5
Peer 4
Peer 3
Peer 2
Ardova
H1 2020 (% volume)H1 2019 (% volume)
3.0%
4.6%
12.9%
15.7%
30.7%
33.0%
Peer 5
Peer 4
Peer 3
Ardova
Peer 2
Peer 1
H1 2019 (% volume) H1 2020 (% volume)
4.7%
4.9%
12.2%
15.3%
22.0%
40.9%
Peer 5
Peer 4
Peer 3
Ardova
Peer 2
Peer 1
20
Well diversified products base with core focus on growing non-fuel revenue
Fuels
Lubricants
Renewables
Low carbon energy
• Revenue from the fuels business grew by 7% to N79.4billion in H1 2020 compared to N74.3billion in the corresponding period. The performance of
the fuels business was primarily driven by increased supply of premium motor spirit over the period. PMS volume grew by 28.2% y-o-y with an
aggregate contribution of 90.0% to total sales volume. This was followed closely by a 37.7% growth in supply of Aviation Turbine Kerosene (+37.7%
y-o-y)
• In terms of revenue PMS, AGO and Lubes contributed 98% to overall revenue generated
• Ardova achieved a market share of 26.7% making it the industry leader by PMS market share at the end of H1 2020
▪ Our Lubricants and grease segment contributed 9% to total revenue closing at N7.8billion (H1 2019: N8.4billion). Volume of sales, however, reduced
during the period by 11.9%
▪ Industry market share for our lubricant business, increased from at 11% to 18% in H1 2020
▪ We will continue to ramp up production capacity of our LOBP plant in the coming months
▪ Our solar home system (SHS) business achieved a revenue of N7.3million compared to N27.3million in corresponding period. We will continue to make
investments in clean energy and lower carbon fuels and broaden our customer base to become a dominant player in the energy space. Our projection
is to achieve a 20% contribution to revenue from renewables and low carbon energy by 2024 . Currently, the business is exploring partnerships with
industry experts in the renewables space through solar, waste to energy and battery as a service solutions
• Low carbon energy through Liquefied Petroleum Gas (LPG) is our mainstay for clean energy solutions and the transformation of our company
into an energy company of the future. Currently significant investments are underway to achieve the desired level of success in this segment. At the end of H1 2019 our LPG business through cylinder sales delivered a revenue of N3.5million
21
As a forward-thinking organization, we stress tested our business operations amidst the prevailing widespread COVID-19 pandemic and built financial resilience
Mitigation
Scenario
1 – Best case
• Nigeria experiences isolated orsmall cluster of outbreak. Nowidespread outbreak.
• Economy opens by the end of Q2and recovery starts in 2020
• Economic impacts are driven byglobal knock-on effects on tradeand travel.
• Pent-up demand is unleashed onthe economy at the end of Q2
2 – Mid case
• Nigeria experiences medium-sized
cluster of outbreak. No widespread
outbreak but government extends
lockdown.
• Economy opens early Q3 and
recovery starts in 2020
• Pent-up demand is unleased on the
economy at the back end of Q3.
• Economic impacts are driven by
global knock-on effects on trade
and travel.
3 – Worst case
• Nigeria experiences large cluster of outbreak. There is wide spread of outbreak.
• Country-wide lock down till the end of Q3 (or beginning of Q4).
• Economy opens in Q4- Recovery starts in 2021.
• Economic impact is driven by the local
lockdown and the global knock-on effects on trade and travel.
Impact on Business
• Circa 8% of our annual projected volume lost
• Mild delay in our transformation programme will have knock on effect on our delivery timelines
• Circa 15% of our annual projected volume lost
• Delay in our transformation project by a quarter.
• Circa 20%-25% of our annual projected volume lost
• Most items on the transformation project to be delayed to 2021
Focus on finalising plans for accelerated deployment of transformation plan post-COVID
Accelerated Pace of Energy Transition
Business LiquidityPartnership
22
Strategic Outlook
When tomorrow comes
We’ll be ready
We’re intentional about
building an energy company designed for the future
23
Consistently delivering notable milestones along our strategic priorities and themes
• Corporate Brand name
changed
• Ongoing marketing and
communication
initiatives to position
Ardova Plc as a
downstream energy
market leader
• Constant media
publication on
renewables and clean
energy solutions
Sustainability Brand Core Asset Optimization
Strategic Partnerships
People
• Twelve pilot stations
now 100% solar
powered
• Launched a wholly
owned subsidiary for
trucks with an
international logistics
partner
• Completed the pilot
phase of automating
some of our retail
stations for real-time
retail station
information
management and
inventory control
• ISO 9001 Certification
renewed for our
operations center
affirming our
commitment to quality
and safety
• Advancing discussion
with expert leaders in
the renewable sector
to develop a fit-for-
purpose solution for
each region
• In line with our
partnership with Five
Cowries, the 1st
Edition of our
educational leaflet
has been produced
• Solidified our
partnership with
international oil
majors and initiated
partnerships talks on
renewables
• NFR Partnerships
with Banking
Agencies
• Kick off on Retail
Station Renovation
• Tender launch for
Apapa Terminal
Corridor & Fuel dump
development
• RFQ FEED for the
proposed 15000MT
Bulk LPG terminal
• Station expansion:
inclusion of 3 new
lease stations and
purchase of 2
stations
• Executed lean agile
work force as a
response to the
COVID 19 pandemic
• Health and safety
guidelines were
developed, and all
staff underwent
mandatory training.
• Deployment of
online trainings for
staff members
24
Our strategic focus is premised on a new company that will remain operational in the next 55 years.
Operational Efficiency
We will continually commit to
rein in cost while maximizing our
revenue streams and optimize
core assets. Deliberately we will
work at achieving significant
market share across all our white
products and non-fuel revenue
lines
Superior customer Experience
As a customer centric institution,
we will grow our customer base
responsibly across all our
geographical locations to ensure
repeat business
Innovation Partnership
We will make one-off
investments that will yield
sustainable returns as part of our
drive to future proof our
business
Strategic Outlook for
H2 2020
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 or
2020, our focus will be
on;
✓ Operational Efficiency
✓ Building superior
customer experience
✓ Innovation
✓ Partnership
With the fast-changing business
environment, more emphasis and
investment will be made on
innovative capabilities across
the energy value chain
25
Appendix
Clean energy
sources
We are conscious and
concerned about the environment. This is why
we are evolving beyond fossil fuel and have
chosen to invest and advance new frontiers in
renewable energy solutions
26
Profile: Board of Directors
Mr. Sowami is the founder & Chief Executive Officer of Prudent
Energy & Services Ltd, a $600million gross-revenue mid to
downstream company. He sits on the boards of several companies
including Prudent E&P Ltd, FES Energy Ltd (UAE), Ignite Investment &
Commodities Ltd, Prudent Gas Ltd and Prudent Effsow Commodities
Ltd.
By developing and leveraging on first tier relationships with
leadership of international trading companies, including Glencore,
Shell Trading Rotterdam, Vitol and BP Oil International Ltd, Mr.
Sowami has amassed a combined trading line of over US$100million.
Mr. Sowami is also well known for his philanthropy. He established
the Abdul-Lateef & Sanni Foundation to build schools and provide
scholarships to indigent students
Education & Certifications: Mr. Sowami holds an M.Sc. in Corporate
Governance from Leeds Beckett University, England and a B.Sc. in
Sociology from University of Maiduguri. He is a member of the
institute of Directors, Nigeria
AbdulWasiu O. Sowami
Chairman
With. Over 18 years of experience in oil and gas, renewable
energy, power and strategy. Olumide has a proven track record
of senior leadership and strategic foresight. He is a recognized
thought leader in the energy sector
Olumide provided advisory services to multinational clients at
PricewaterhouseCoopers (PwC), London and then worked as a
consultant to British Petroleum (BP) Plc. And eventually went
on to become Vice President, Commercial Development &
Operations for BP’s Nigeria Trading business
Prior to his recent appointment as Chief Executive Officer,
Ardova Plc, Olumide led the Energy & Power (West Africa)
Practice at PwC.
He held various leadership roles, including Head of Strategy
Consulting for West Africa and Head of Capital Projects and
Infrastructure. Notably, he co-led the buy-side advisory of one
of the largest acquisition deals in the Nigerian downstream oil
and gas sector
Education & Certifications: Olumide holds a B.Sc. In Architecture
from Woodbury University, California and an M.Sc. in
Information Security and Mathematics from Royal Holloway
College, University of London
Olumide Adeosun
Chief Executive Officer
Mr. Olajide has experienced rapid growth as a Chartered
Accountant and Tax Professional due to his versatility and
diligent work ethics
His responsibilities at PwC, a multi-disciplinary firm, spanned
financial reporting and regulatory services, statutory audits,
capital projects, infrastructure deals, energy, utility and mining
deals advisory and structuring, general tax advisory, compliance
services, client training services and company secretarial
services spanning multiple sectors of the economy and more
notably in Oil and Gas.
Prior to joining PwC, he had a stint with Aluko & Oyebode Law
Firm where he had the responsibilities for general legal
advisory, company secretariat, negotiation of commercial
agreements, litigation and arbitration
Education & Certifications: Mr. Moshood holds an LL.B from
Obafemi Awolowo University and an LL,M Degree from
Columbia Law School. He is a member of the Association of
Chartered Certified Accountants (ACCA), the Nigerian Bar
Association (NBA), the New York Country Lawyers’ Association
(NYCLA) and the Chartered Institute of Taxation of Nigeria
(CITN)
Moshood Olajide
Executive Director
Finance &
Risk Management
Mr. Umar has over 20 years of experience in the oil, gas and
energy sector. Over time, he has played a significant role in shaping
the maritime industry evidenced by the various roles and capacity he
has served in. He currently serves as the President of Nigeria Ship-
Owner’s Association (NISA) and is a member of the Ministerial
Committee on Nigerian Fleet implementation Committee Member and
the Advisory Council to the Executive Management of Nigerian
Maritime Administration and Safety Agency (NIMASA)
Mr. Umar started his career as an accountant with the Overseas
Agency Nigeria Ltd (OAN) and eventually rose to become the
Managing Director between 2001 and 2007
He is the Founder and CEO of Sea Transport Services Nig. Ltd, one of
the leading commercial managers of tanker vessels in Nigeria. As
MD/CEO of the Sea Transport Services Group, Mr. Umar has led the
company on a consistent growth trajectory over the last ten (10)
years with the business conservatively valued at over $100million
and growing his fleet to a total capacity of 350,000 Metric Tonnes.
Mr. Umar is also Founder and Managing Director of integrated
Shipping Services Nig. Ltd, the largest indigenous tanker port agency
firm in Nigeria for Products, Crude and LNG tankers
Education & Certifications: Mr. Umar holds a B.Sc. In Accounting from
the University of Maiduguri
Mr. Adeeyo is a tested, trusted and seasoned professional
in the finance, banking and business fields. He is Founder and
CEO of Astral Waters Ltd, a leader in quality water delivery. He
is also the founder of Protea Hotel Oakwood Park Lekki, a 4
Star Hotel which is part of an international hotel brand
managed by Protea Hotel Group of South Africa. Previously, he
was the Managing Director of Asset & Investment Ltd, a
financial services company which he funded and managed
He currently serves as an independent director and the
Chairman of the Corporate Governance and Remuneration
Committee of the Central Securities and Clearing Systems Plc.
He is also the Group Chairman of AXA Mansard Insurance Plc
and sits on the boards of several other reputable companies in
Nigeria
Education & Certifications: Mr. Adeeyo holds an M.A. in
International Relations form NorthEastern University, Boston,
USA in addition to B.A. in Political Science from the University
of New York, Albany, USA
With an impressive career spanning over 35 years, Mrs.
Durosinmi-Etti is a very experienced Barrister at Law, who
started off her career as an Associate at Udoma Udo Udoma
Law Firm. She went on to open her own legal practice under the
name AJ.Durosimi-Etti & Co. and then consulted for Udoma &
Bello-Osagie Legal Practitioners, and served as a Director at
GoldHaze Ltd.
She is currently a Director & Deputy Managing Director at
Linkage Assurance Plc, where she successfully piloted the
company through landmark transformational phases of growth,
among which were their initial Public offer in 2003 and another
Public offer in 2005.
Subsequently, she steered the company through the challenges
of recapitalization and an eventual merger with Central
Insurance Company Ltd
Education & Certifications: Mrs. Durosinmi-Etti holds an LL,M
from the University of Cambridge, a BL (Barrister-at-Law) from
the Nigerian Law School, Lagos and an LL.B from University of
Lagos.
Mohammed Aminu Umar
Non -Executive
Director
Olusola Adeeyo
Independent
Non-Executive DirectorAnlola Durosimi- Etti
Independent
Non-Executive Director
27
Questions &
Answers
Energy for a
Brave New World
28
₋ Gross Profit refers to Revenue minus Cost of sales.
₋ Gross Profit Margin corresponds to Gross Profit as a % of Revenue.
₋ Operating Expenses corresponds to Selling and distribution expenses, Administrative expenses and Other operating expenses.
₋ Profit before Tax Margin corresponds to Profit before Tax as a % of Revenue.
₋ Return on Equity (annualised) corresponds to Net Profit reported to average Total Equity.
₋ Quick Ratio is defined as Current Assets minus Inventories reported to Current liabilities.
₋ Current Ratio is defined as Current Assets reported to Current liabilities.
₋ Gearing is defined as Total borrowings reported to Total Equity.
₋ Interest cover ratio is defined as PBT reported to finance costs.
Definitions of terms
29
Thank You
For more information, please contact
30
Adebola Olatunbosun
Investor RelationsEmail: [email protected]
[email protected]: 09010965168 | T: +234 1 2776100 | Ext: 1073