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Oando grows profit by 83% to N11bn

By on November 19, 2014

Oando Plc, a leading integrated energy firm yesterday reported its nine months results ended September 30, 2014, showing a growth of 83 per cent in net profit.

The company, which recently acquired Nigerian assets of ConocoPhillips(COP) to boost its operations and leadership position, posted a turnover of N338 billion, compared to N386 billion in the corresponding period of 2013. Gross profit rose by 97 per cent from N46.7 billion to N79.5 billion.

However, high administration administrative expenses, financing moderated the profit after tax. While the company reduced selling and marketing expenses from N5.2 billion to N4.2 billion, administrative expenses rose from N26.6 billion to N47 billion.
Similarly, net financing cost soared by 203 per cent from N8.612 billion to N26.137 billion.

Consequently, profit after tax stood at N11 billion, showing an increase of 83 per cent compared to N6 billion posted in 2013.
Market analysts said given the nine months results, Oando Plc has very bright prospects, saying that once the huge debt burden is over, the company would begin to enjoy the real benefits of the its continuous investment in new assets.

Oando recently paid a dividend of N1 dividend per share for shareholders comprising 30 kobo for the 2013 financial year and 70 kobo interim   for the six months ended June 30, 2014.

The shareholders of the company, who approved the dividend at the annual general meeting in Lagos, commended the board and management for the dividend.
They also expressed high hopes that the acquisition of the COP assets in Nigeria, would add more value their investments going forward.

For instance, Mikail of Costance Shareholders Association of Nigeria, said: “I commend the board and management for the acquisition of those assets, which I believe have made the future brighter for shareholders of the company.”
Highlighting the impact of Oando’s $1.5 billion acquisition of COP Nigeria, which has transformed the company into Nigeria’s largest indigenous oil and gas producer, the Group Chief Executive Officer of Oando, Mr. Wale Tinubu assured shareholders of further improvements in the company’s performance.

According to him, the acquisition is set to increase daily oil production exponentially by 600 per cent equivalent to 45,000 boe/d, annual revenue of over $600 million, and annual free cash flows of $150 million.



“With an eye to the future, we took on our largest and most daring feat with the acquisition of COP, adding capacity to support our future growth plans.  Our strategic refocus on the higher margin promises to create profitable growth for us and immense value add for our stakeholders in the near term,” Tinubu said.

 

[ThisDay]