C&I Leasing revenues up 0.5% in FY'22

C and I Leasing, a leading leasing and ancillary services company, recently announced its financial results for the year 2022, showing a marginal increase in gross earnings to 19.9 billion naira. Despite the challenging operating environment marked by inflationary pressures and devaluation, the company managed to swing to a profit, with post-tax profits rising to about 607 million naira. In a recent interview on CNBC Africa, Ugoji Lenin Ugoji, the Group Managing Director of C and I Leasing, elaborated on the company's performance and future plans. Ugoji highlighted the focus on operational efficiency as a key strategy to navigate the tough economic conditions. The company made tough decisions to improve the efficiency of its existing fleet by divesting inefficient assets and reinvesting the proceeds to enhance the overall fleet quality. While these actions impacted the ability to onboard new clients, they significantly improved the bottom line. Ugoji emphasized that the year was challenging, but the strategic focus on efficiency paid off, leading to improved performance and financial results. Despite the hurdles faced in the environment, C and I Leasing managed to adapt and strengthen its position in the market. The injection of new management personnel into strategic positions also played a crucial role in enhancing the performance of the company's subsidiaries. As Ugoji explained, the Ghana unit and the Dubai-based subsidiary EPIC faced challenges due to the economic conditions in their respective operating environments. The decline in demand in Ghana and the impact of pipeline vandalism on day rates for vessels in Nigeria posed obstacles that the company had to navigate. However, with the assistance of key personnel, C and I Leasing successfully managed negotiations with end-users and optimized the utilization of its assets. Looking ahead, C and I Leasing is poised for expansion in the fleet management sector. Ugoji revealed plans to focus on operational efficiency in the first half of 2023 and anticipates a significant increase in demand for assets in the latter half of the year. The company aims to capitalize on the improving security situation in Nigeria to increase its vessel fleet and explore opportunities in non-oil sectors to diversify its portfolio. Additionally, C and I Leasing is monitoring inflation trends and expects a positive impact on its services as inflation begins to taper down. The company is also exploring new opportunities in Ghana and Nigeria to support market expansion and enhance its offerings. In the debt capital markets, C and I Leasing initiated a commercial paper program of 50 billion naira to support its working capital requirements. Ugoji expressed optimism about the debt capital markets' continued support for the industry and highlighted the company's conversion of debt notes to equity as a positive development. As C and I Leasing continues to navigate the evolving market landscape, it remains committed to leveraging capital markets to drive growth and innovation in its operations.