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Oando records 77% growth in profit

By on April 4, 2011

Oando PLC – listed on both the Nigerian and Johannesburg Stock Exchange – at the weekend announced a group profit-before-tax of N23billion for the full year ended Decembe 31, 2010. This represents 77 per cent increase compared to N13.5 billion in 2009. The results, which has been approved by the Nigerian Stock Exchange (NSE) indicates that turnover grew by 12 per cent to N378.9 billion compared to N336.9 billion, while profit-before-tax equally rose by 77 per cent to N23.9 billion compared to N13.5. Similarly, post-tax leapt by 42 per cent to N14.4 billion compared to N10.1 billion, while adjusted earnings per share went up to 67 per cent to N9.31 compared to 　N 5.58k As a result of these stellar performance, the Board has recommended a dividend of N3 for each ordinary share of 50 kobo, totalling N5.4 billion; this compares to N2.7billion paid last year and follows the award of ‘one for two’ bonus shares to shareholders in 2010. The dividend proposal is however, subject to shareholders’ approval at the company’s Annual General Meeting scheduled for May 25, 2011. Commenting, Group Chief Executive, Oando PLC, Mr Wale Tinubu, said: “These results underscore the resilience of our integrated business model, which leverages scale, diversity and market leadership to consistently deliver in the face of our challenging operating environment. “In 2010, spurred on by a 128 per cent subscription for our N21 billion Rights Issue and the execution of a five-year medium term note facility, we recorded a number of significant milestone, especially in our midstream and upstream divisions. In the Upstream division, we inaugurated our first pipeline in the Obodeti-Obodugwa field (OML 56). We deployed our second swamp rig into drilling operations, and signed a contract for delivery of a third with an International Oil major. Midstream; inaugurated our first IPP the 12.15MW Akute Power Plant and achieved 90 per cent completion of our 128Km Eastern gas pipeline, while connecting our 100th customer on our Lagos gas pipeline. Downstream; our marketing and trading division extended its leadership with the support of the Sovereign Debt Note programme, which guarantees prompt payment of petroleum subsidies.” Oando Group PLC, he stressed: “Stand positioned to maximse the opportunities presented by the rapidly evolving legal framework of the upstream sector in Nigeria and will divest up to 49 per cent of our marketing business to partially finance our investment drive in producing assets, whilst ramping up production in our existing portfolio. We look forward to the deployment of two additional swamp rigs into operations and in the midstream division, the inauguration of our 128km Southe astern pipeline and the commencement of the Greater Lagos Phase 4 development. “As we roll out our pipeline of initiatives, 2011 and beyond, promises to be excitinsation and substantial value creation for our shareholders.”

source : The Nation