Q3’2018: Oando’s turnover increases by 32%

NIGERIA’S leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, Oando Plc, for its nine months period ended September 30, 2018, has increased its turnover by 32 per cent.

According to the company’s unsuited result submitted to the Nigerian Stock Exchange (NSE), 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.

Underlining how far both majors and indigenous companies have come since oil prices plummeted in 2014, Oando PLC recently posted its nine months ended September 2018 results, with a profit of N10.4 billion, a 46 per cent increase, compared with N7.1 billion in the same period of 2017. The company has since recovered from the effects of the oil price crash, with this being its 8th consecutive profit since 2017 and its 3rd profit in 2018.

Speaking on the company’s financials, Adewale Tinubu said; “Today’s 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.”

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% increase in realized crude selling price compared with the same period in 2017. According to the company’s press statement, performance was further buoyed by sale price increases of 6% for Natural Gas Liquids and 31% for natural gas deliveries.

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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 N237.4billion 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.

Commenting further, Oando’s Group Chief Executive said: “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.

In the third quarter of this year, the company in partnership with its Joint Venture partners commissioned a 20,000-gallon water scheme for the over 5,000 residents of Agbere Community, Bayelsa State, in the process reducing the number of Nigerians without access to clean potable water. In the same vein in the Aggah community in Rivers State, the company commissioned asphalt road and drainage projects, alongside their JV partners, NNPC & NAOC. Other community projects commissioned include roads and drainage in Irri Community, Isoko South Local Government Area of Delta State and in the Oguta Community, Imo State.

More recently in line with the company’s commitment to Nigerian Content Development, they ran in collaboration with their JV partners, NAOC and NNPC a series of content development workshops in Yenagoa, Bayelsa State. These workshops, carried out in partnership with the Nigerian Content Development Monitoring Board (NCDMB), focused on compliance best practices, procurement regulations and business financing strategies to help improve the quality of output from local contractors as well as the promotion and development of in-country capacities for the industrialization of Nigeria.

Speaking on the future outlook for the company, Wale Tinubu 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.