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Oando pays N2.4bn dividend, grows profit by 110%

By on October 29, 2014

Shareholders of Oando Plc monday commended the board and management of the company for the N2.4billion, which was approved at the  37th annual general meeting in Lagos.

The board of Oando recommended a 30 kobo dividend for the 2013 financial year and an interim 70kobo dividend for the six months ended June 30, 2014, which amounted to N2.4 billion at N1 per share.



Some of the shareholders, who spoke at the AGM, urged the company to sustain the interim dividend policy, which they said would boost their liquidity position.  They also expressed high hopes that the acquisition of the ConocoPhillips (COP) assets in Nigeria, would add more value their investments going forward.

For instance, Shehu Mikail of Costance Shareholders Association of Nigeria, who spoke to THISDAY on the COP assets, said it was a very proactive and strategic move by the management.

“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,” Mikail said.

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.



Meanwhile, Oando reported a gross profit of N50.5 billion for half year ended June 30, 2014, showing an increase of 68 per cent from N30.233 billion in the corresponding year, 2013. Profit before tax rose 103 per cent from N6.156 billion to N12.452 billion, while profit after tax grew by 110 per cent to hit N8.9 billion, compared with N4.271 billion.


“With an eye to the future, we took on our largest and most daring feat with the acquisition of ConocoPhillips Nigeria, 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. 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,” Tinubu said.

 

[This Day]