By PETER EGWUATU
Shareholders of Geo-Fluids Plc have been promised of better returns in the years’ ahead, as the company’s second quarter 2010 financial looks promising.
Speaking at the company’s Annual General Meeting (AGM) held in Port Harcourt for the financial year ended December 31, 2009, the Chairman, Geo-Fluids Plc, Chief Odoliyi Lolomari, said, “ the current focus of the management is to delight shareholders with good returns, as they remain one of the most important stakeholder groups of the company”.
Commenting on the company’s results, Lolomari said, “despite the results that is being considered for the financial year under review, I am glad to report that the future prospect of our company is bright. My optimism is hinged upon the fact that revenue generation activities of the group have considerable improved since the second quarter of 2010”.
According to him “ when they know we are using the company’s money judiciously, it will boost their confidence in us.”
He added that the local environment challenges were further aggravated by the unabated escalation of insecurity in the Niger Delta, noting that it resulted in further compression of foreign direct investment into Nigeria in the last three years.
Lolomari, however, said, “Despite the challenges, I am glad to report the following positive developments which will also impact on our operations and profitability in the future. Your company has commissioned the construction of two new marine vessels in partnership with a Chinese ship builder. As I address you today, the vessels have arrived Nigeria.”
According to the results released by the company, turnover dropped to N1billion in 2009, as against N2.9bn in 2008. The company recorded a consolidate loss of N598million. Correspondingly; there was a marginal drop in the consolidated balance sheet size from N6.3bn in 2008 to N5.72bn in 2009.
“The new vessels will be commissioned and mobilised for work in a few weeks, thus enhancing the cash flow situation. The improved security situation in the Niger Delta arising from the Federal Government amnesty programme has led to resumption of oil drilling activities by our clients. These activities are expected to have direct positive impact on our finances.”