Nigerian oil products distributor Ardova Plc returned to a profit in the third quarter as sales rose and costs fell.Ardova’s lube unit turned to an operating profit of 210.1mn Nigerian Naira ($479,000) in the three months to end-September, from a N428mn loss in the second quarter of the year.Profit was still down 34pc from N320mn during the same period last year..Ardova’s earnings improved from the second quarter as a 2pc rise in sales to N7.87bn contrasted with a 9pc fall in costs.But costs still rose for an eighth straight quarter from year-earlier levels to the second-highest level in more than seven years.Unusually high costs reflected the impact of a sustained rise in costs of everything from base oils and additives to logistics. The further depreciation of Nigeria’s currency compounded the rise in costs in local currency terms.The drop in costs from the second quarter coincided with lower base oils prices in Europe and improving availability of supplies in that market and in other markets like the Mideast Gulf.The easing tightness gave Nigerian importers more supply options and more leverage to negotiate more competitive prices.A surge in base oils shipments from the US to Nigeria in the first half of the year reflected buyers’ limited alternative supply options during that period..US August base oils exports to Africa slump.With costs edging lower from the second quarter, Ardova’s third-quarter operating profit margin improved to 2.7pc, from a 5.6pc loss during the previous three months.Ardova produces and distributes lubricants manufactured at its blending plant in Apapa. It is also the sole distributor of Shell lubricants in Nigeria for the automotive and industrial sectors..Nigeria Ardova's lube unit sees Q2 loss
Nigerian oil products distributor Ardova Plc returned to a profit in the third quarter as sales rose and costs fell.Ardova’s lube unit turned to an operating profit of 210.1mn Nigerian Naira ($479,000) in the three months to end-September, from a N428mn loss in the second quarter of the year.Profit was still down 34pc from N320mn during the same period last year..Ardova’s earnings improved from the second quarter as a 2pc rise in sales to N7.87bn contrasted with a 9pc fall in costs.But costs still rose for an eighth straight quarter from year-earlier levels to the second-highest level in more than seven years.Unusually high costs reflected the impact of a sustained rise in costs of everything from base oils and additives to logistics. The further depreciation of Nigeria’s currency compounded the rise in costs in local currency terms.The drop in costs from the second quarter coincided with lower base oils prices in Europe and improving availability of supplies in that market and in other markets like the Mideast Gulf.The easing tightness gave Nigerian importers more supply options and more leverage to negotiate more competitive prices.A surge in base oils shipments from the US to Nigeria in the first half of the year reflected buyers’ limited alternative supply options during that period..US August base oils exports to Africa slump.With costs edging lower from the second quarter, Ardova’s third-quarter operating profit margin improved to 2.7pc, from a 5.6pc loss during the previous three months.Ardova produces and distributes lubricants manufactured at its blending plant in Apapa. It is also the sole distributor of Shell lubricants in Nigeria for the automotive and industrial sectors..Nigeria Ardova's lube unit sees Q2 loss
