Riding on the successful outing of its subsidiaries and the positive impact of the Local Content Act in the Oil and Gas industry, Arco Group plc; a major player in the sector’s value chain, has grown its gross earnings by N569m representing 10.83 percent from N5.253bn for the year ended March 2013, to N5.822bn for the outgoing financial year.
The visible leap in gross earnings also spiked the Group’s dividend by 25 percent to 25 kobo per share with total dividend paid to shareholders totalling a little above N637m.
Revealing this at the Group’s 32nd Annual General Meeting, Joseph Akpieyi, chairman, board of directors, Arco Group, highlighted the significant impact of the maritime and pipeline solution subsidiary, coupled with the focused and visionary leadership by the Group’s management team as the major reason for the swell in returns, despite the challenging business environment.
Akpieyi further stated that the Group’s Profit before Tax (PBT) grew from N1.75bn for the year ended 31st march 2013 to N1.995bn for the outgoing financial year. While Profit after Tax (PAT) increased from N1.44bn from the year ended March 2013 to N1.523bn for the year ended March 2014.
This commendable performance, the chairman said, reinforces the Group’s believe that with its diversified income base, the firm is well positioned to become the leading indigenous oil and gas service group in Nigeria.
Akpieyi also informed the shareholders that the process of obtaining ISO/TS 29001:2011 Standard certification for Quality Management System for all the operating companies in Arco Group had commenced, adding that the new option is being explored to leverage on the success of Arco Pipeline Solutions Limited, one of the Group’s subsidiaries which obtained a similar certification in 2013.
The chairman further assured the shareholders that as a board, with the cooperation of the company’s management team, the firm will continually seek to create blue oceans to achieve value innovations and post superior results.
“We shall continually remain focused and we shall utilise the resources at our disposal efficiently and effectively leveraging on the Nigerian Content policy of the Federal Government as well as our industry recognised professionalism to deliver top-level performance on your investments,” he enthused.
Alfred Okoigun, the group managing director on his part disclosed that 35 new companies have been incorporated as subsidiaries of Arco Group plc to engage in business ranging from oil and gas, electricity, agriculture, manufacturing, maritime, construction and the fabrication of technology.
He noted that the newly incorporated companies are aimed at changing life-changing opportunity for Nigerians with rare entrepreneurial skills and determination to realise their ambition of managing any of these companies.
Source : BusinessDay