By Peter Egwuatu
Shareholders of Global Spectrum Energy Services (GSES) Plc has cautioned its Board of Directors to adopt a dividend policy that would enable the Company overcome the capital base challenges facing the industry as a whole.
The shareholders, yesterday, at the Company’s Annual General Meeting, AGM in Lagos commended its Management and Board for the improved results posted for the financial year, 2018.
Speaking, Nonah Awo, cautioned that the company should manage their dividend policy very in the face of capital challenges that companies currently face. He said: “We request that the board should adopt a dividend policy that will enable the company build up strong reserve for future capital investment and growth.”
According to Yemi Adebayo, a shareholder “The profit growth of the company for the period being considered is quite commendable. This is more so, as most organisations within the sector that GSES operates are still trying to find their feet in the very uncertain business environment. Our divided policy should be looked into to forestall capital crisis.”
Analysis of the Company’s results show that Global Spectrum recorded strong improvement in its profit with investors reaping 5kobo interim dividend.
The company’s profit after tax grew by a significant 396 percent to N548 million for the operational year ended December 31, 2018, as against a profit of N110.5 million accounted for in the previous period of 2017. The company maintained the growth trend in all performance indicators with revenue growing by 72 percent to close at N1,87 billion for the period under review, compared to N1.09 billion achieved in the previous year. Profit before tax appreciated by 192 percent to N596 million in the 2018 period, while the 2017 pre-tax figure closed at N204 million.
Speaking earlier, Colm Doyle, the Acting Chief Executive Officer of the company said, the performance of the company was as a result of the competencies the company has demonstrated in its area of business. He said the GSES operates in a niche but very competitive sector of the oil and gas industry; but has maintained good performance ostensibly due its policy of bringing on board the best skilled manpower.
Colm further noted that GSES operational policies are derived strictly from the needs base of the clients, which is the reason the company remains a preferred partner with the International Oil Companies IOCs.