Oando Plc has posted a turnover of N381.7 billion for the financial year ended December 31, 2015 against N425.7 billion achieved in the corresponding period of 2014.
The turnover represented a drop of N44 billion or 10.34 per cent when compared with the 2014 figure.
In the company’s audited result released by the Nigerian Stock Exchange, the result showed that loss before tax decreased to N51 billion in 2015 from N138 billion recorded in 2014, while Loss after tax decreased to N49.7 billion compared with N145.7 billion achieved in 2014.
Also, the company, for the first quarter ended March 31, 2016, recorded a turnover of N64.0 billion in contrast with N97.1 billion in the preceding period of 2015, a decrease of 34.09 per cent.
Its gross profit stood at N8.8 billion against N20.5 billion, indicating a decrease of N11.70 billion or 57.07 per cent.
Commenting on the results, Wale Tinubu, the company’s Group Chief Executive, said 2015 was a turbulent year for the global oil and gas sector.
Tinubu said business models were altered to enable industry players survive the new reality on ground by focusing on cost optimisation, increasing operational efficiency and downscaling capital expenditure.
“This re-evaluation of our business has resulted in the execution of strategic initiatives, which we are confident will return our business to profitability in the short-term in 2016,” Tinubu stated.
He explained that with growth through its dollar earning upstream portfolio, recapitalisation or asset divestment the company would return to profitability.
Also speaking on the first quarter result, Tinubu said it showed the company’s dedication to return its business to profitability by the end of the 2016.
“We are succeeding in our corporate initiatives which are today’s driving forces for our business in this new global reality of economic restraint and lower oil prices in our industry.
“As a group, we have placed our focus on growing our dollar earning upstream higher margin and export trading businesses.
“We continue to count on the consistency of our retail and midstream interest and look forward to a rewarding year where we will solidify our aspirations and return to profitability.”
Nevertheless, in the notes to the financial statements, the auditor highlighted key initiatives of management to return the group to profitability. These include the conversion of convertible loan notes of N36.4 billion currently classified under current liability to equity, refinancing approximately N94.6 billion of short term borrowings into a new five-year medium term loan note facility which took place on June 6, 2016, among others.
Others are divestment of the energy services business leads to de-consolidation of approximately N43 billion debt from the group’s statement of financial position, partial divestment and recapitalisation of the downstream division of which net proceeds of approximately N44 billion will be used entirely to pay down debt, while deconsolidation of the downstream division will remove the downstream debt from the group’s statement of financial position.