Oando Plc has recorded N10.396 billion profit-after-tax (PAT) in its third quarter ended September 30, 2018 results.
The company in a release to LEADERSHIP, yesterday stated that the continued increase in oil prices and sales volumes, Nigeria’s exemption from the production cut by the Organization of Petroleum Exporting Countries (OPEC), capital discipline and reduced disruptions on production activities in the Niger Delta are contributing factors to the improved cash flows and impressive results posted by Oil and Gas companies operating in Nigeria in the third quarter of 2018.
Also, the results released to the investing public by the company showed that profit after tax grew by 46 per cent, compared with N7.1 billion in the same period of 2017.
The company said that Oando’s 46 per cent jump in year-on-year quarterly net profits beat market expectations, saying that “despite being in the middle of an indirect shareholder dispute which has led to a yet to be concluded Securities and Exchange Commission (SEC) forensic audit, the company recorded a 32 per cent increase in its turnover to N505.1 billion from N383.5 billion in comparative period of 2017, driven by higher commodity prices; while its gross profit grew by nine per cent to N77.6 billion from N71.2 billion in 2017.”
Speaking on the company’s financials, the Group chief executive of Oando, Adewale Tinubu said, “The positive result is further evidence of the progress made by Oando in 2018 driven by our continued focus on execution and operational efficiency, supported by buoyant commodity prices.”
According to Tinubu, this is as a result of good operational efficiency, these results confirm Oando’s ability to take full advantage of the improved macro environment to deliver on key corporate imperatives of increased revenues and profit to create value for her shareholders.
“As the year draws closer to an end the management of Oando must be applauded for their dedication to keeping the company on course by delivering yet another consecutive quarter of strong financial performance.”
He added that in the exploration and production sector, Oando’s upstream subsidiary, Oando Energy Resources made a stellar performance as it benefited from the ramp-up of higher margin production resulting in a 45 per cent increase in realized crude selling price compared with the same period in 2017.
“The performance was further buoyed by sale price increases of six per cent for Natural Gas Liquids and 31 per cent for natural gas deliveries.
“In the downstream, Oando traded over 10 million barrels of crude oil and ensured petroleum products efficiency through the importation of 445,483MT of refined products. An improved cash flow led to a reduction in the Group’s total borrowing with a reduction in total borrowing from N237.4 billion in the nine months ended September 2017 to N227.1 billion in the same period of 2018. These numbers further reinforce the success of Oando’s ongoing initiatives to create value for stakeholders, and drive sustainable growth.”
Tinubu added that “the outlook for the remainder of the year is positive and we remain committed to delivering on our value-based strategy towards improving our liquidity by reducing our gearing, improving our profitability by increasing production, and achieving growth via strategic alliances.
“Oando’s continued positive results and corporate initiatives reinforce the company’s focus on redefining the role of independent players as vital in supporting the socio-economic growth of the nation. In 2018, the company has been particularly active in showcasing to its stakeholders the output from its day to day operations as well as the positive impact it is having in the communities it operates in.”
Tinubu further explained that the company would build on this performance in the coming quarter as well as step up organic and inorganic development activities across its existing portfolio.