Q3: Oando Plc records N13.1bn profit

OANDO Plc, listed on both the Nigerian and Johannesburg Stock Exchanges, in its unaudited results for the nine months period ended September 30, 2019 has posted a profit after tax of N13.1 billion.

The company increased it’s PAT by 29 per cent from N10.4 billion recorded by 3Q:2018, while the turnover decreased by 18 per cent to N413.8 billion as against N505.1 billion posted in the previous year.

However,  Total Group Borrowings decreased eight per cent to N193.1 billion compared to N210.9 billion (FYE 2018), while production increased by eight per cent to  43,045 boe/day compared to 40,039boe/day posted by September 2018.

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Commenting on the results Wale Tinubu, Group Chief Executive, Oando Plc said “In the period under review, we made substantial progress on our top priority of operational growth and recorded an eight per cent increase in hydrocarbon production. In conjunction with our partners, we successfully completed an ambitious six-well drilling programme, the results of which have been positive. We are particularly excited about the discovery of a significant gas and condensate find at a field in OML 61 of our joint venture. This has had a major impact on our reserves and consequently future cash flows. Production has since commenced in October on the completed wells, and the gas will largely be channelled to feed the nation’s power sector through our joint venture’s Okpai Power plant, Nigeria’s first independent power plant. In addition, we achieved an eighth per cent reduction in our debt levels, whilst growing free cash flows.

Over the last quarter of the year, our focus will be on the completion of our drilling programme, as well as “tie-in” of the new discoveries.”

Tinubu noted that the company continued to maintain adequate levels of capital with Capital Adequacy Ratio (CAR) at 17.8 per cent which is above the regulatory threshold. Non-performing loans (NPLs) declined to eight per cent from 8.7 per cent as at year-end 2018.

 

Nigerian Tribune

David Olagunju

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