The face behind newly listed Atlas’ forays in Kenya

Wednesday morning marked a new chapter in Atlas Development and Support Services Ltd’s two-year history.

By listing its shares on the Nairobi Securities Exchange (NSE), Atlas Development has opened the door for Kenyan investors who have been mere spectators as Halliburton and Weatherford and other major oil and gas services companies scramble for a share of the multi-billion industry.

Atlas Development says the region’s extractives industry was ripe for a company that could blend global expertise and local knowledge.

“East Africa is one of the fastest growing regions in the world. Some estimate that there is up to $68 billion (Sh6 trillion) of projects under construction in the region ranging from civil engineering and infrastructure to resource development.

“We believed there was a need in the East African market for a local company to provide support services with an understanding of local operating conditions but to an international standard,” Atlas chief executive Carl Esprey said.

The 35-year Italian is an accountant and a CFA charterholder who has done stints with financial consultancy firm Deloitte as well as with BHP Billiton, the world’s largest mining company working in Johannesburg and London and now Nairobi.

Atlas’ other board members have CVs that read from the same script, a graft between international and emerging markets work experience.

Lachlan Monro, the 41-year-old chief operating officer and a former soldier, worked at Blue Hackle, a risk management firm with offices in the region and the US.

Formed as African Oilfield Logistics Limited, Atlas Development first entered the Kenyan market through the acquisition of a 49 per cent stake in Ardan Risk & Support Services for $4 million (Sh356 million) in August 2013.

Ardan had been operating in Kenya since 2008, servicing Tullow Oil and Africa Oil, major explorers that have had a string of successes in Turkana County and that have said they plan to continue with drilling in the region.

African Oilfield Logistics Limited bought the remaining 51 per cent stake in Ardan in October for an undisclosed amount, and shareholders later agreed to rebrand to Atlas and then list on the Nairobi bourse.

Mr Esprey says setting up its regional office in Nairobi and following this with the listing was the next natural step in the company’s evolution.

“Nairobi houses our headquarters, our key operation as well as a sophisticated capital market that understands and appreciates our business potential.

“Kenya is a strategic investment destination for mining, energy, infrastructure and oil and gas. We always wanted to open the ownership of the entire company to all Kenyans and a cross-listing in Nairobi was the way to achieve this.”

READ: Nairobi Securities Exchange lists its first oil-linked stock

The decision, he says, has been vindicated by the successful private placement offer that saw the firm raise Sh450 million, solely from Kenyan investors who bought a 10 per cent shareholding in Atlas Development, which also trades on the London Stock Exchange’s AIM.

“The recent incredible support for our private placement we believe is an endorsement of our regional potential. We hope that all Kenyans continue to support us and share in this exciting and rewarding journey.”

Kenyans will also have a say in how the firm is managed, through two board appointments in the next few months.

The logistics firm currently has 1,000 employees, 700 of whom work in Kenya. Out of these 670 are Kenyans, four being in managerial positions.
The rest of its staff is spread in Ethiopia, Djibouti, Mozambique and Tanzania.

Oil, gas and mining industries in the region are in their early stages of development but companies have been trooping in, confident that the market promises handsome returns for risk takers.

Atlas says it expects other major players to come in, eager to muscle their way into the profitable business but for this newest company to list on the NSE, gaining a solid footprint will keep it ahead of the pack.

“Any world class industry will always be subject to competitive forces. We believe our first mover advantage coupled with our commitment to international standards provide a key differentiator for us,” says the CEO.