Oando Plc on Tuesday released its results for the
first half of 2014, declaring a profit after tax of
N8.980bn.
The figure represented a 110 per cent increase on
the N4.271bn it declared in the corresponding
period of 2013.
The indigenous oil and gas producer, which is
listed on the Nigerian Stock Exchange and
Johannesburg Stock Exchange,also announced
operating profit of N23.693bn, 145 per cent
higher than the N9.689bn it posted in H1, 2013.
It grew its profit before tax by 103 per cent to
N12.533bn from N6.155bn, while its gross profit
edged up by 68 per cent to N50.506bn from
N30.234bn.
According to the company, based on its Q2 2014
performance, it is likely to end the year with a
N24bn profit.
Oando Plc also released its audited results for the
financial year ended 31 December 2013 on
Tuesday, which showed that it made a profit after
tax of N1.396bn during the year.
The company explained that its performance in
2013 was impacted significantly by the acquisition
cost and interest on debt facilities in its prolonged
acquisition of ConocoPhillips Nigeria business
assets.
Following the release of the results, the
company’s board of directors has proposed to
pay N1 as dividend to its shareholders. It plans to
pay 30 kobo as dividend for 2013 and 70 kobo as
interim dividend.
A statement from the company said the
“impressive results indicate the company is
beginning to reap the rewards of its landmark
$1.5bn acquisition of ConocoPhillips’ entire
Nigerian business, which has transformed its
status into Nigeria’s largest indigenous oil and
gas producer.
“With the acquisition now complete and
immediately cash generative, the company’s
upstream subsidiary, Oando Energy Resources,
has a total hydrocarbon production capacity of
approximately 45,000 boe/d, 2P Reserves of
230.6MMboe and 2C Resources of 547MMboe,
and expects annual revenue of over $600m, and
annual free cash flows of $150m.”
The Group Chief Executive Officer, Oando, Mr.
Wale Tinubu, was quoted as saying that, having
repositioned the company, the goal was to
increase its market share.
He said, “Our strategic refocus on the higher
margin Upstream foresees immense value add for
our stakeholders in the near term. We have
succeeded in repositioning ourselves within the
sector, and through future acquisitions and
innovative efficacy we will seek to up our market
share in sub-Sahara’s Upstream sector within the
next five years to 100,000 boe/d in net
production.”
According to the statement, the group has also
made significant progress in extracting value from
its legacy assets, while its midstream business,
Oando Gas and Power, is currently undergoing an
extension of its natural gas distribution network
by 8km from Ijora to the Marina business district
in Lagos state.
This, it said, would position the company to
benefit from the growing demand for gas and
power infrastructure in the country.
In the downstream, the company recently
completed construction of the Apapa Single Point
Mooring (ASPM) Jetty, a first in Africa.
“The project is expected to improve overall
downstream efficiency through cost savings on
imports and the elimination of the current high
cost of lightering and demurrage. The cost saving
across the industry is estimated to be in excess
of $120m,” it said.
The company said its performance in the first half
of 2014 was indicative of its “active strategic
initiatives; upstream investments, midstream
expansion and downstream optimisation.”
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