WITH the economic recession in Nigeria, continued volatility in global oil prices, pipeline sabotage in the Niger Delta, reduced oil exports, suspension of projects and cuts to capital spending, companies in Nigeria especially those in the oil and gas industry are still grappling with being able to generate substantial value to shareholders.
Amidst these challenges Oando PLC, Nigeria’s largest indigenous energy group commenced 2016 with a reinvigorated strategy of growth, deleverage and profitability. The successful implementation of these initiatives is evident in the company’s FYE 2016 results with a N3.5 billion profit-after-tax, a 107 per cent increase from Full Financial year 2015 figures.
A review of the company’s results further shows positive performance across all financial indices, turnover increased by 49 per cent to N569 billion compared to N382 billion in FYE 2015, while EBITDA increased by 51 per cent to N71.0 billion compared to N47.0 billion in FYE 2015, boosting investors and shareholders confidence in the brand and its management team.
Commenting, Mr Wale Tinubu, Group Chief Executive, Oando PLC said: “2016 saw the country plunge into a recession, the first in over 2 decades, besieged with liquidity constraints, devaluation of the naira and a slump in oil earnings due to low oil prices intensified by the insurgency in the Niger Delta. We were proactive in the timely execution of our restructuring program of Growth in our upstream division; Deleverage, through divestments resulting in a net debt reduction of N125 billion; and Profitability by focusing on dollar denominated earnings.
Speaking on outlook for 2017, Tinubu said: “As we enter a new phase in our business evolution we are optimistic about 2017 and look forward to even more successes having braved the challenges of 2016.”
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