Ardova Plc, formerly known as Forte Oil, has reported a 75.8% YoY decline in profit after tax to N514.9 million in its Q2’20 unaudited results released through the Nigerian Stock Exchange on Friday.
The company gross profit expanded slightly from N2.519 billion in Q2, 2019 to N2.559 billion in Q2 2020. Revenue grew by 22.3% to N52bn from N43bn in the previous quarter.
Profit before tax declined by 81.5% to N580m. Profit after tax declined by 85% to N497m.
Net Assets grew by 3.1% to N16.7bn from N16.2bn.
The firm reported an operating profit of N787.407 million, up from N246.495 million decline reported in the corresponding period of 2019. While finance income depreciated from N4.254 billion in the Q2 of 2019 to N42.616 million.
Profit before income tax dipped from N3.198 billion reported in the same period of 2019 to N591.087 million.
Profit after tax plunged from N2.126 billion achieved in the corresponding period of 2019 to N514.923 million. Earnings per share declined from N1.63 to 39 kobo in the second quarter ended June 30, 2020.
The global pandemic that disrupted crude oil market eroded profits of oil companies and weighed on their entire operations, especially during the April-June quarter when oil prices dipped to their lowest on record.
Ardova was one of the numerous oil companies affected by the disruption in global commerce and economic activities.
The company’s total asset contracted from N47.089 billion to N45.341 billion in Q2 2020. While total liabilities declined from N30.856 billion in Q2 2019 to N28.165 billion in Q2 2020.
However, total equity expanded to N17.176 billion, up from N16.163 billion in the second quarter of 2019.