Arco Group unveils new business strategies, eyes international market

08 November 2014, Lagos – A Nigerian indigenous oil and gas services company, Arco Petrochemical Engineering Company Plc (APEC), which until recently had provided coordination for Arco companies, in addition to its maintenance and engineering services, has unveiled new business strategies in its 34-year history, with the incorporation of ARCO Group Plc.

This incorporation signals the end of APEC as an entity, while the newly-incorporated Arco Maintenance and Engineering Ltd (AMEL), will take over the maintenance and engineering functions, thus becoming a subsidiary of Arco Group Plc.

AMBULANCE WORKERS WEARING PROTECTIVE GEAR LOAD A PATIENT WITH POSSIBLE EBOLA SYMPTONS INTO THE BACK OF AN AMBULANCE AT THE HARVARD VANGUARD FACILITY IN BRAINTREE ArcoThe Chairman of the Board of Directors of Arco Group Plc, Mr. Joseph Akpieyi, reeled out these and other far reaching structural changes yesterday during the 32nd Annual General Meeting (AGM) of the company in Lagos.

Akpieyi 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.

He said the step being taken in this direction was to leverage on the success of one of Arco’s subsidiaries, Arco Pipeline Solutions Ltd that successfully obtained the ISO 9001:2008 Quality Management Certification with Bureau Veritas in 2013.

Akpieyi also told the shareholders that the ISO certification would improve Arco’s competitive edge in delivering high quality products and services to its customers within Nigeria and overseas, especially in the West and Central Africa regions.

The changes in the structure and operation of Arco have been the outcome of a well thought out Strategic Enterprise Transformation Project, christened “Project ASET”.

Arco had in 2013 engaged the services of PricewaterhouseCoopers (PwC) to carry out organisational transformation services for the group and facilitate the development of a 5-year Strategic Plan that would not only chart the course of the organisation towards sustainability, but would also enable Arco to hold a position of dominance in the prized category of indigenous companies operating in the oil and gas sector.

Akpieyi further informed the shareholders that in spite of the challenging operating environment and other internal activities, the gross revenue increased by N569 million or 10.83 per cent from N5.253 billion for the year ended 31st March, 2013 to N5.822 billion for the year ended 31st March, 2014.

Profit Before Tax (PBT) increased by N241.79 million or 13.75 per cent from N1.752 billion for the year ended 31st March, 2013 to N1.995 billion for the year ended 31st March, 2014. Similarly, Profit After Tax (PAT) increased from N1.44 billion for the year ended 31st March, 2013 to N1.523 billion for the year ended 31st March, 2014.

“This performance reinforces our previous statements that Arco Group, with its diversified income base, is well poised to become the leading indigenous oil and gas service group in Nigeria,” Akpieyi said.

He further stated that based on the excellent performance during the year, the Board recommended and the AGM approved a dividend of 25 kobo for every share outstanding in the company register of members as at 31st March, 2014, an increase of 25 per cent over the dividend paid to shareholders for the year ended 31st March, 2013.

Total dividend approved was N637,594,000 with the balance on profit being reserved for reinvestment to support future growth of the company.

He also disclosed that consistent with Arco’s policy of human capital development, a number of staff attended various capacity building programmes during the year, including seven of the company’s engineers and technicians attended a course on “Advanced Maintenance Leadership in Reliability Centred Maintenance Masterclass organised by Salvo Global, Singapore.

He said the feedback from participants was that the course was quite enriching.

“In the years ahead, we shall continue to enhance and upgrade our human capital capability so that we shall continue to deliver superior services to our clients. I will like to emphasize once again that as a Board, with the cooperation of the Management Team of our Company, 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 recognized professionalism to deliver top-level performance. We shall continually seek to create blue oceans to achieve value innovations and post superior results on your investments,” Akpieyi explained.

Speaking after the AGM, the Group Managing Director of Arco Group Plc, Mr. Alfred Okoigun disclosed that 35 new companies have been incorporated as subsidiaries of Arco Group Plc to engage in businesses ranging from oil and gas, electricity, agriculture, manufacturing, maritime, construction and fabrication to technology and entertainment.

He said the company incorporated the companies in order to create life-changing opportunity for any Nigerian including members of Arco staff with rare entrepreneurial skills and determination to realise their ambition of managing any of these companies.



– This Day

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