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Oando shareholders to receive N5.1bn dividend

By on July 5, 2013

The Group Chief Executive of Oando Plc, Mr. Wale Tinubu has said that the company’s shareholders will receive a dividend of N5.1bn for the year ended December 31, 2012.

A statement from the company yesterday said the dividends, which translate into 75 kobo per share, reflects a yield of 5.7 per cent and would be paid out of the N10.9bn profit after tax of the company.

The company reported N10.9bn profit after tax in 2012, from N1.8bn in 2011, an increase of 526 per cent, while turnover stood at N675.5bn, up by 18 per cent from N573.2 bn in 2011.

According to the result, profit before tax rose by 35 per cent, from N13bn in 2011 to N17.5bn.

“We are pleased to report our twelve months performance for 2012, in which we have taken positive steps in the implementation of our strategic focus to build our diversified higher margin business segment,” Tinubu said.

Explaining the performance of the divisions of the group, he said the upstream division was listed Oando Energy Resources on the Toronto Stock Exchange in Canada and the company increased production capacity through successful drilling campaigns on OML 125, the Ebendo Field (OML 56) and the Qua Iboe Field (OML13).

“We also paid a 25 per cent deposit of $435m for the acquisition of ConocoPhilips Nigerian business, which will add 43 kobo to our daily production and substantially increase our 2P reserves and best estimate contingent resources to 235mmboe and 237mmboe respectively.

The OES completed a number of successful drilling campaigns on our various drilling rigs, whilst our 4th rig, is currently undergoing refurbishment and expected to be deployed in the second half of 2013,” he added.

He stressed that the midstream division witnessed a 35 per cent growth in gas supply, mainly from the newly commissioned 128Km EHGC pipeline in the South East of the country.

“ We look forward to the completion of our other midstream projects; our second power plant the Alausa Independent Power Plant, our maiden compressed natural gas project as well as our third pipeline franchise and the Central Horizon Gas pipeline in Port Harcourt, Rivers State,” he said.

Regarding the downstream division, Tinubu stated that the company remained committed to increasing its efficiencies and is in the final stages of construction of a midstream jetty in Lagos that will berth larger vessels and substantially reduce demurrage and lightering costs.