Oil and gas retail giant, Ardova Plc reported a loss of N3.8 billion for the year ended December 2021. This contain in its audited financial statements published by the company.
According to details in its financial statement; Ardova’s loss of N3.8 billion is a reversal from the N1.8 billion profit report in the prior year. This is also the first full-year loss report the company since it was transform from Forte Oil Plc.
The company acquired Enyo Retail and Supply Limited (ERSL) in 2021. Which makes it one of the oil and gas marketing companies with the largest retail network in Nigeria.
So to eke out some profit, the size of the revenue needs to be larger so that there are enough gross profits to absorb the operating costs. Unfortunately, this was not the case this year. Ardova needs an 8% gross margin to declare losses and not the 5% it achieved in the year under review