Ardova reported net profit of ₦1.8 billion (U.S. $3.9 million) for its lubricants and greases segment last year, rebounding from a ₦247.2 million net loss in 2021. The segment’s fourth-quarter net profit improved to ₦1.1 billion, compared to a ₦1.5 billion net loss in the same period in 2021.

Operating profit for the segment last year rose 70% to ₦2.5 billion, improving from ₦1.5 billion. Operating profit in the fourth quarter improved to ₦1.4 billion, also a turnaround from a ₦176.8 million operating loss.

Lubricants and greases segment sales increased to ₦32.3 billion in 2022, compared to ₦25.8 billion in 2021. In the fourth quarter, the segment’s sales rose to ₦9.2 billion, compared to ₦7.4 billion.

“Despite the economic and market headwinds, we continued to make good progress in our strategic transformation in Q4, including advancing our lubricant business, imbibing a high-performance culture across every stratum of our business and improving our operational structure and processes to drive efficiencies,” Ardova CEO Olumide Adeosun said in the company’s earnings news release.

Ardova said in its earnings release’s business outlook that it anticipates the industry will likely experience continued supply constraints and other uncertainties this year. “We understand that our lubricants business is a significant contributor to the sustainability of our business, hence, we will focus on increasing customer base and enlarging our market share,” the company also said. The company makes and distributes a wide range of lubricants from its blending plant in Apapa, Lagos, including Super V, Visco 2000 and diesel motor oil. Ardova is also the sole authorized distributor of Shell branded engine oils and lubricants to Nigeria’s automotive and industrial sectors.