Nigerian blender and distributor Ardova Plc’s lubricants and greases segment reported a net loss and a 16% increase in sales revenue for the quarter ending June 30, according to the company’s financial statement.
The lubricants and greases segment declined to a net loss of 423.1 million naira (U.S. $1 million) for the second quarter, compared to a ₦508.2 million net profit in the same quarter last year.
Sales revenue rose to ₦7.7 billion for the second quarter, improving from ₦6.5 billion.
The company manufactures and distributes lubricants from its blending plant at its Apapa terminal in Lagos. Ardova distributes Shell lubricants branded products for the automotive and industrial sectors in Nigeria.
Ardova was formerly known as Forte Oil Plc. In 2019, Ignite Investments and Commodities Ltd. acquired a 74.02% equity stake in Forte Oil Plc’s downstream operations. Later that year, Forte changed its name to Ardova Plc.
According to a Nigeria economic outlook by the African Development Bank Group, the country’s economy is expected to grow about 3.2% during 2022-2023 – following 3.6% growth last year and a 1.8% contraction in 2020 – due to persistent low oil production and rising insecurity. The outlook projections inflation to remain elevated at near 17% this year and stay above pre-pandemic levels in 2023, fueled mainly by rising food, diesel, and gas prices and persistent supply disruptions amplified by the Russia-Ukraine conflict.