Firm un­veils growth plan, tar­gets N2b profit in 2022

The Guardian (Nigeria) - - BUSINESS - By He­len Oji

FOL­LOW­ING its pro­posed $200mil­lion five-year strate­gic ex­pan­sion plan, Global Spec­trum En­ergy Ser­vices Plc, has an­nounced a tar­get Profit Be­fore Tax of N2.6bil­lion by 2022 up from the cur­rent N847.8mil­lion.

Ac­cord­ing to the com­pany, due to the ur­gent need to ser­vice forth­com­ing long-term ves­sel char­ter con­tracts with ex­ist­ing clients, it plans to ex­pand off­shore sup­port fleet in 2018.

The ex­pan­sion ex­er­cise, ac­cord­ing to the Chief Ex­ec­u­tive Of­fi­cer, Colm Doyle, would help Global Spec­trum to con­sol­i­date, and build ca­pac­ity on the whole Nige­rian-owned flagged ves­sels op­er­a­tions, and en­hance prof­itabil­ity.

A to­tal of 800 mil­lion units’ or­di­nary shares of Global Spec­trum En­ergy were listed on the main­board of the Nige­rian Stock Ex­change (NSE) for N5 at 50 kobo per value. The list­ing added N4­bil­lion to the NSE mar­ket cap­i­tal­i­sa­tion.

Ad­dress­ing stock­bro­kers at a ‘Fact Be­hind the List­ing’ ses­sion on the NSE on Mon­day, Doyle said: “A to­tal of $200mil­lion will be used for the business, the break­down shows that $15mil­lion will be used for tank farm/blend plant, $35mil­lion for ves­sel fleet and $150mil­lion for Pipe Mill.” He said the com­pany’s mis­sion is to ex­pand and di­ver­sify its prod­ucts base, to fur- ther strengthen the business ca­pac­ity and in­crease share­hold­ers’ value, adding that 30 per cent of its profit af­ter tax will be used for div­i­dend to share­hold­ers.

Fur­ther­more, he listed the ar­eas of fo­cus for the ex­pan­sion drive to in­clude; re­fined pe­tro­leum prod­ucts sup­ply, and dis­tri­bu­tion tank farm, and line pipe man­u­fac­tur­ing, blend­ing of lu­bri­cants, ves­sel fleet ex­pan­sion, and tanker and petrol ves­sels.

He dis­closed that Global Spec­trum has ac­quired a prime water­front site in Ru­moulu­meni, Port Har­court, Rivers State, for the de­vel­op­ment of a 50mil­lion litre ca­pac­ity tank farm, with stor­age ca­pac­ity for re­fined pe­tro­leum PMS, AGO, DPK and a 6,000 met­ric tonnes LPG strong fa­cil­ity.

He also added that the com­pany, in con­junc­tion with its part­ners, Aegean Ma­rine Pe­tro­leum in Greece, has con­cluded plans to de­velop a 10,000-met­ric tonne ul­tra-mod­ern lu­bri­cant blend­ing plant as well as a state of the art lab­o­ra­tory si­t­u­ated at the tank farm site in Port Har­court.

The Chief Ex­ec­u­tive Of­fi­cer, NSE, Os­car Onyema, urged lo­cal play­ers in the in­dus­try to ex­plore op­por­tu­ni­ties in the mar­ket and raise long-term cap­i­tal for business ex­pan­sion.

He added that the list­ing would in­crease the firm’s com­mit­ment to strong cor­po­rate gov­er­nance prin­ci­ples and dis­clo­sures.

Deputy Direc­tor, Fed­eral Min­istry of In­dus­try, Trade and In­vest­ment, Bala Mo­hammed (left); Man­ag­ing Direc­tor P&G Nige­ria, Ge­orge Nas­sar; Deputy Direc­tor, Fed­eral Min­istry of In­dus­try, Trade and In­vest­ment, Fran­cis Alaneme; and Direc­tor, Gov­ern­ment...

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