Nigerian oil company, Oando. [Photo credit: Guardian Newspaper] Related News
Oando recorded another victory with the successful conclusion of its 41ST Annual General Meeting (AGM) which held on Friday, July 27 at the Eko Hotel and Suites, Lagos. On the eve of the AGM, Thursday, July 26, the company published its H1 2018 results recording N8.5 billion profit-after-tax.
Shareholders at the AGM were united in their support for the company and applauded the management team for restoring market confidence by maintaining a track record of growth over the last 18 months culminating in the achievement of N8.5 billion PAT in H1 2018, the company’s 7th quarter consecutive profit.
Shareholders went on to encourage management to keep up the good work and avoid distractions and distractors intent on destroying the company’s reputation and eroding shareholder value.
Speaking at the AGM Adebayo Adetunji Adeleke an Oando Shareholder commended management for transforming Oando from a downstream company to a dollar earning upstream focused business. He further said: “The profit declared in H1 2018 has given us hope, I am optimistic that with hard work the company will continue in this stead. I want to commend Oando on the impact of our Corporate Social Responsibility activities, we are touching lives, hundreds of thousands oflives and these same people are praying for the company therefore we will not go down.”
The company’s profits swelled as oil prices increased. An analysis of Oando’s financials shows that the company’s turnover grew by 11% to N297.3 billion from N267 billion (H1 2017); gross profit increased by 53% to N51 billion compared to N33.4 billion (H1 2017); and profit-after-tax increased by 86% to N8.5 billion compared to N4.6 billion (H1 2017). In its upstream business, Oando recorded a net profit of N27.1 billion ($75.2 million) compared with N16.3 billion ($53.2 million) in the comparative period of H1 2017.
According to the company’s statement, the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities. Oando picked up on the industry recovery witnessed in 2017.
Brent prices averaged $69.87 per barrel, resulting in a 38% increase in realized crude selling price compared to the same period in 2017. Oando’s performance was further buoyed by sale price increases of 19% for NGL and 13% for natural gas deliveries.
Tunde Badmus another shareholder said: “Oando has survived all odds […]