C&I Leasing CEO talks H1 earnings, outlines growth strategy
C and I Leasing reported a 69.1 per cent decline in its profit after- tax for the first half of the year. The Company’s Managing Director and CEO, Andrew Otike-Odibi joins CNBC Africa to delve into the facts behind the numbers.
Wed, 05 Aug 2020 11:44:53 GMT
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AI Generated Summary
- Significant decline in profits attributed to pandemic-related factors and downturn in oil prices
- Cost-cutting measures and diversification efforts in place to mitigate revenue impact
- Focus on digital transformation and emerging market opportunities for future growth and recovery
C&I Leasing, a leading provider of asset financing and outsourcing services in Nigeria, reported a 69.1% decline in its profit after tax for the first half of the year. The company's Managing Director and CEO, Andrew Otike-Odibi, spoke with CNBC Africa to shed light on the underlying factors influencing these results and the strategic initiatives being undertaken to navigate the challenging operating environment. As the COVID-19 pandemic continues to impact businesses globally, C&I Leasing has been working on repositioning its business lines and leveraging digital transformation to seize new opportunities.
Otike-Odibi attributed the significant decline in profits to the adverse effects of the pandemic on the company's operations. With a heavy reliance on the oil and gas sector for a majority of its income, C&I Leasing faced challenges as a result of the downturn in oil prices and reduced demand for its services. The CEO highlighted that many of the company's assets were taken out of operation, leading to a drop in revenues. Additionally, pressure from clients in the oil and gas industry to lower rates further impacted the company's financial performance.
In response to these challenges, C&I Leasing implemented cost-cutting measures to mitigate the impact of dwindling revenues. Otike-Odibi emphasized the importance of diversification as a key strength of the company, noting that certain product lines presented opportunities for growth despite the macroeconomic headwinds. The CEO highlighted the transformation of the company's investment business into a digital platform, which has allowed for greater efficiency and enhanced service offerings.
Looking ahead, Otike-Odibi expressed optimism about the company's prospects for the remainder of the year. He indicated that C&I Leasing is poised to capitalize on emerging opportunities in the market, particularly in digital services and other diversified business lines. While the marine business segment may continue to face challenges due to the lingering impact of the oil and gas industry's struggles, the CEO remains hopeful that as market conditions improve, rates will rise, and performance will rebound.
The CEO also addressed the share reconstruction that took place in January last year, clarifying that it was intended to create more room for future share issuance and did not directly impact the company's operating results. Despite the challenging first-half performance, Otike-Odibi expressed confidence in the company's ability to navigate the current environment and deliver positive results in the coming months.
In conclusion, C&I Leasing's CEO remains focused on leveraging digital transformation, diversification, and cost optimization to drive growth and resilience amidst ongoing challenges. The company's strategic initiatives and commitment to innovating its business model position it well for a sustainable recovery and continued success in the future.