Firm unveils growth plan, targets N2b profit in 2022
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 further 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 50-million 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.
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