Troubled Oando Plc, Nigeria’s indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange has announced its unaudited results for the nine months period ended 30th September, 2017.
The financial highlights show: Turnover increased by 16 per cent to N383.5 billion compared to N329.9 billion (Q3 2016); Gross Profit increased by 148 per cent, N71.2 billion compared to N28.6 billion (Q3 2016); while Profit-After-Tax increased by 120 per cent, N7.1 billion compared to (N35.8 billion) (Q3 2016).
Oando Energy Resources (OER) recorded an average production of 39,844 boe/day in the nine months ended September 30, 2017 compared to 43,617 boe/day in the comparative period of 2016; Realized a net income of N26.97 billion ($88.2 million) compared with a net profit of N2.51 billion ($8.2 million) recorded in the comparative period of 2016; Oando Gas & Power (OGP) was rebranded to Axxela; Appointed as a shipper on the West Africa Gas Pipeline; and Successfully achieved completion of Greater Lagos IV (GLIV) pipeline expansion project.
Oando Trading (OTD) recorded a 48 per cent increase in turnover to N305.75 billion ($1 billion) compared to N206.69 billion ($676 million) in the comparative period of 2016; Traded over 11 million bbls Crude Oil volumes and 800,000MT of Refined Petroleum Products, a 25 per cent growth in traded volumes; The Lagos Marine Jetty (LMJ) officially commenced operations receiving its first product vessel.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said: “Our third-quarter financials are reflective of the success of our strategic initiatives of Growth through our dollar earning upstream portfolio; Deleverage through recapitalization and asset divestments and the expansion of our oil export trading business. The proceeds from our business restructuring have been successfully used in improving our balance sheet with a reduction of N21 billion in our net debt position from N230.6 billion as at December 2016 to N209 billion today. Despite prevailing headwinds, we continue to create value as seen in our improved performance four quarters in a row and remain confident about the resilience of our business model.’’
The fourth quarter presents an optimistic outlook for the Nigerian oil and gas sector having experienced a third quarter characterized by an oil price increase of 14 per cent from July to September 2017 compared to the same period in 2016. The country also officially exited a 13 month long recession with a positive Gross Domestic Product (GDP) growth of 0.55 per cent in the second quarter of 2017 buoyed by OPEC’s cut in oil production and exemption of Nigeria from the production cut, stability in oil prices and a boost in the nation’s oil production due to the ongoing truce with Niger Delta militants.
Troubled Oando Posts N7.1billion Profit-After-Tax
