By Modupe Gbadeyanka
Oando Plc says it made a post-tax profit of N3.5 billion in the financial year ended December 31, 2017. This is in contrast to N47.6 billion loss it recorded in 2015.
This, it said, represents an increase of 107 percent in its profit for the year under review.
Oando Plc is an indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchanges.
According to the firm in its financial statements, in the midstream, it completed the partial divestment of 49 percent (about $210 million) of the voting rights in its midstream business subsidiary, Oando Gas and Power Limited (OGP) to Glover Gas & Power B.V., a special purpose vehicle owned by Helios Investment Partners (Helios), a premier Africa-focused private investment firm for $115.8 million.
Also, OGP concluded the sale of Akute Independent Power Plant for a transactional value of N4.6 billion.
During the year, Oando recorded an increase in its turnover by 49 percent to N569 billion compared to N382 billion in the previous year.
Its net debt reduced by 35 percent to N230.6 billion compared to N355.4 billion in the previous year, while the Oando Energy Resources (OER) recorded a 20 percent decrease in total production to 15.9MMboe from 19.9MMboe in comparative period of 2015.
Furthermore, Oando Trading witnessed continued growth resulting in a 106 percent increase in traded volumes of Crude Oil and Refined Petroleum Products, accomplished through a number of structured and well executed initiatives, while the physical volumes of 13 million barrels of crude oil and 1.3 million MT of refined petroleum products were transacted with trading revenues hitting a four-year high at $1.4 billion.
In his remarks, the Group Chief Executive of Oando Plc, Mr Wale Tinubu, said that 2016 saw the country plunge into a recession, the first in over two 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.
Mr Tinubu said the firm was proactive in the timely execution of restructuring programme of growth in its upstream division; deleverage, through divestments resulting in a net debt reduction of N125 billion; and profitability by focusing on dollar denominated earnings.
“In the, upstream we witnessed a decline in production but an increase in our 2P Reserves from 445mmboe in 2015 to 469mmboe.
“We are hopeful that the Federal Government will establish a long-term resolution to the conflict in the Niger Delta, which will positively impact the oil and gas industry, consequently ramping up our daily production.
“In the Midstream we concluded the partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners to further expand our gas footprint, whilst in the Downstream our trading business continued to make in-roads in crude lifting.
“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,” he said.
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