Wale Tinubu, MD, Oando Despite a challenging local environment, Oando was able to maintain a trend by posting positive results for the third consecutive year with the announcement of a N28.8 billion profit after tax; 46 per cent increase from the N19.8 billion it posted in the corresponding period of 2017.
A review of Oando’s results shows positive performance across most of its financial indices; reaffirming the company’s concerted efforts and commitment to reversing the tide following the oil price crash in 2014.
Following the negative fallout from the plunge in oil prices in 2014, the company has successfully executed strategic initiatives that have enabled continued growth across all financial performance indices three years in a row; in a challenging local terrain this is indeed a feat worth applauding.
As at full year end 2018, turnover increased by 37 per cent to N679.5 billion compared to N497.4 billion in 2017, driven primarily by higher oil prices resulting in higher oil revenue and higher gas prices which led to higher gas revenues. In addition, gross profit grew by 9 per cent to N96.3 billion from N88.1 billion in 2017.
Its total Group borrowings decreased by 11 per cent to N210.9 billion from N237.4 billion in 2017, while long term borrowings decreased by 23 per cent to N76.8 billion compared to N99.6 billion in the same period of 2017.
Worthy of note is the fact that, since its acquisition of ConocoPhillips Nigeria in 2014, Oando has embarked on a proactive drive to significantly reduce its debt and liabilities. From a N473.3 billion corporate facility in 2014 to N210.9 billion in FYE 2018, a 55 per cent decrease and in its upstream business, the company has reduced its debt by 70 per cent from $801.6 million in 2014 to $260 million as at FYE 2018.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said: “Our 2018 results demonstrate the solid foundation we have built across volatile commodity price cycles, and our ability to deliver profitability despite a challenging local operating environment.
“Over the last few years, we have developed a reliable platform for future growth through the execution of a corporate strategy designed to streamline our operations, reduce our debt and optimize our asset portfolio.
“Our asset base is delivering strong free cash flows as evidenced by a 70% reduction in our Upstream Borrowings since the closure of our landmark acquisition of ConocoPhillips’s Nigerian asset in 2014.
“We […]
