Oando Plc said it has achieved a profit- after- tax of N4.6 billion in its half year result for the period ended June 30, 2017.
The company in its result released on the Nigerian Stock Exchange (NSE), showed that the profit- after-tax went up by 117 per cent to N4.6 billion from a loss- after- tax of N26.9 billion in H1, 2016.Reviewing the company’s result further showed that turnover increased by 26 per cent to N267.1 billion from N212.3 billion, gross profit increased by 76 per cent to N33.4 billion from N19 billion and net finance costs more than halved to N16.4 billion from N35.3 billion.The company in a release to media, yesterday, said that, “The first half of 2017 has witnessed the country’s production levels steadily recovering to normalcy. This has largely been as a result of the containment of the Niger Delta unrest, and the more recent resumption of activity on the Trans Forcados Pipeline. There is optimism around the approval of the Petroleum Industry Governance and Institutional Framework Bill (PIGB), which should result in a more efficiently regulated sector and a conducive business environment for industry players.”
Commenting on the company’s financials, the group chief executive, Oando, Mr Wale Tinubu, said, “With security concerns in the Niger Delta receding, Nigeria’s economic recovery has been buoyed by a boost in oil output, while the legislative approval of certain segments of the Petroleum Industry Bill (PIB) provides greater long-term policy certainty for the sector. Our returns underline our continued successful foray into the Upstream.”Oando scored significant operational highlights in the first half of 2017. The company through its upstream business, Oando Energy Resources, successfully realised N3.2 billion in net cash from the crystallisations of the Corporate Facility hedges (1,590 bbls/day), while in the second quarter of 2017, it successfully completed the sale of its interest in OMLs 125 and 134 to Nigerian Agip Exploration Limited “NAE” for a profit of N4.6 billion.
In its downstream business, Oando Trading (OTD), witnessed a 40 per cent growth in traded volumes and a commendable 147 per cent increase in turnover to N217.5 billion compared to N88.1billion for the comparative period of 2016.The trading business lifted volumes exceeding 7.5mmbbls of crude and imported 610,000MT of refined petroleum products, a 72 per cent and 20 per cent increase respectively.The structured trade finance lines in its downstream business increased by N76.5 billion to N214.1 billion in total, from a total of five International and African banks, further validation that Oando is still a good business investment. This increase in financing allows the company to achieve greater trading capacity and in turn more volumes.Speaking on the outlook for the company in the second half of 2017, Tinubu said, “We remain committed to optimising our overall production base, seeking unique profit-driven opportunities to further partner with IOCs, while firming up our balance sheet to provide greater shareholder value.