Oando H1 2017 records 76% gross profit growth
. As PAT surges by 117 %
Oando Oil Plc has demonstrated its commitment to reward its shareholders with growth in key market performance indices in its first half year result for the period ended 30th June, 2017.
Oando, one of Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchanges, posted half year one result recently released showed that gross profit increased by 76 per cent, to N33.4 billion compared to N19b posted in the corresponding period of 2016.
The report showed that in half year one 2017, Onando Plc grew Profit-After-Tax by 117 per cent to N4.6b compared to N26.9b posted in H1 2016, while its turnover increased by 26 per cent, N267.1b compared to N212.3b H1 2016.
Mr. Wale Tinubu, Group Chief Executive, Oando Plc, commenting on the result, said with security concerns in the Niger Delta receding, Nigeria’s economic recovery has been buoyed by a boost in oil output, while the legislative approval of certain segments of the Petroleum Industry Bill (PIB) provides greater long-term policy certainty for the sector.
“Our returns underline our continued successful foray into the Upstream. Within the prevalent crude pricing regime, we remain committed to optimizing our overall production base, seeking unique profit-driven opportunities to further partner with IOCs, while firming up our balance sheet to provide greater shareholder value.” Wale Tinubu said.
Production in the first half of 2017 decreased by 20% to 7.2 MMboe (average 39,950 boe/day) compared to 8.2 MMboe (average 44,892 boe/day) in the first half of 2016.
Realized N3.2b from the optimization of the crude oil hedge program which will be used to reduce corporate facility debt obligations.
According to the result, the company recorded growth in its downstream business with a 72 per cent improvement in revenues, from N126.6b in H1 2016 to N217.4b in H1 2017.
During the period, Oando Plc exported over 7Mb of Crude Oil, and imported 600,000 MT of refined petroleum products in the first half of 2017. Representing a 20 per cent and 96 per cent increase respectively.
Oando remained optimistic in its upstream business hinging around the approval of the Petroleum Industry governance and Institutional Framework Bill (PIGB), which should result in a more efficiently regulated sector and a conducive business environment for industry players.
The company said that the first half of 2017 witnessed the country’s production levels steadily recovering to normalcy, due largely to the containment of the Niger Delta unrest, and the more recent resumption of activity on the Trans-Forcados Pipeline.
