Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, has announced its audited results for the twelve months period ended December 31, 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 remain confident in our ability to deliver significant value to shareholders in the years ahead as well as resuming our dividend payments”.
Results Highlights
Strong top and bottom line performance
• Turnover increased by 37%, N679.5 billion compared to N497.4 billion (FYE 2017), driven by higher commodity prices and higher oil production.
• Gross Profit increased by 9%, N96.3 billion compared to N88.1 billion (FYE 2017)
• Profit-After-Tax increased by 46%, N28.8 billion compared to N19.8 billion (FYE 2017)
Optimized balance sheet • Total Group Borrowings decreased by 11%, N210.9 billion compared to N237.4 billion (FYE 2017) while Long Term Group Borrowings decreased by 23%, N76.8 billion compared to N 99.6 billion (FYE 2017).
Operations Review
UpstreamProduction for the twelve months ended 31 December 2018: Proshare Nigeria Pvt. Ltd. During the twelve months ended December 31, 2018, production was in line with prior year at 40,023boe/day, compared with 40,188boe/day in the same period of 2017. Oil production in particular increased by 10% from 15,492bbls/day in 2017 to 16,967bbls/day in 2018.Working interest 2P Reserves, as assessed by an independent reserves evaluator, stood at 479.8mmboe as at December 31, 2018 compared to 470.7mmboe in the comparative prior year period. This represents an increase in overall 2P reserves of 2% year on year in line with the Group’s reserve replacement ratio.Capital expenditure of $104.9 million (N38.0 billion) were incurred in the twelve months of 2018 compared to $55.0 million (N17.1 billion) in same period in 2017. This consists of $109.2 million (N39.5 billion) at OMLs 60 to 63, $0.5 million (N181 million) at Qua Ibo, $5.7 million […]
