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Shareholders, operators commend Oando’s proposed N5.4 bn dividend

By on April 6, 2011

Shareholders and stockbrokers have commended the Board and management of Oando Plc for the proposed payment of N5.4 billion dividend for the financial year ended December 31, 2010.

The shareholders were full of praises for the company’s performance given the lull in economic activities during the  period under consideration.

According to a statement made available to Vanguard, “ the Board has recommended a dividend of N3.00 for each ordinary share of 50 kobo, totaling N5.4 billion; this compares to N2.7billion paid last year and follows the award of ‘1 for 2’ bonus shares to shareholders in 2010. The dividend proposal is subject to shareholders’ approval at the company’s Annual General Meeting scheduled for 25th May, 2011.”

Oando, one of the  Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange announcing  its  full year result ended  2010, revealed that its Group posted  a Profit-Before-Tax (PBT) of N23.9 billion representing 77 per cent increase compared to N13.5 billion in 2009.

Other operational highlights for the review period showed a sustained revenue from Oando’s first Independent Power Plant (IPP), Akute Power Limited, which generates electricity for the Lagos State Water Corporation.

The statement noted that one of Oando’s five swamp rigs was deployed into full drilling operations with an International Oil Company (IOC), bringing its operational rig count to 2 operational rigs in the Niger Delta area.

According to the statement, “ improved payment cycles from the Federal Government Nigeria (FGN) for the subsidization of imported petroleum products, buoyed by the Sovereign Debt Notes have contributed immensely to increase activities in the petroleum sector.”

Other financial highlight for the review period showed that turnover grew by 12 per cent to  N378.9 billion compared to N336.9 billion recorded in 2009. Profit Before Tax (PBT) grew by 77 per cent to N23.9 billion compared to N13.5 in 2009.

The adjusted earnings per share grew by 67 per cent to , N9.31k compared to N 5.58k in 2009.
Commenting on the operating result, Mr. Wale Tinubu, Group Chief Executive, Oando Plc 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 5 year medium term note facility we recorded a number of significant milestones especially in our midstream and upstream divisions.

In the Upstream division, we commissioned 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; commissioned our first IPP the 12.15MW Akute Power Plant and achieved 90% completion of our 128Km Eastern gas pipeline, whilst 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.”

Continuing, Tinubu said, “ we stand positioned to maximize 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 2 additional swamp rigs into operations and in the midstream division, the commission our 128km South Eastern 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 exciting years of growth for the organization and substantial value creation for our shareholders.”

Source : Vanquard