Oando plc has announced N7.2 billion Profit After Tax in six months ended June 30, 2019 unaudited result and account released to the Nigerian Stock Exchange (NSE) on Monday.
The company had reported N8.49billion Profit After Tax in prior six months ended June 30, 2018.
From the profit and loss figures, Oando reported six per cent increase in revenue to N315.4billion in H1 2019 from N297.3billion in H1 2018 as Operating Profit dropped by 92 per cent to N1.16billion from N13.8billion reported in H1 2018.
The Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, said its total group borrowings for the period stood at N200.7 billion, a five per cent decrease from 2018 (N210.9 billion) whilst in upstream specifically, borrowings reduced by 13per cent to $221.3 million compared to $255.6 million in 2018.
Since 2014, the Group has reduced its debt by 58per cent from N473.3 billion while our upstream borrowings have reduced by approximately 72per cent from $801.6 million in 2014.
Commenting on the results, Group Chief Executive, Oando, Wale Tinubu said, “Half year 2019 was a positive period for us as we achieved Strong top and Bottom line earnings despite our overall performance being tempered by a one-off N14 billion charge.
“Our crude oil and natural gas production grew by 15per cent and eight per cent respectively compared to the similar period last year while we also achieved a significant reduction in our Reserve Based Lending facility to approximately $0.4 million from $450 million at inception- a 99per cent reduction.
“We also concluded the divestment of our residual interest in Axxela for $41.5 million, in line with our strategy of divesting from non-strategic assets and remain on track to deliver on all our initiatives for the year. Looking ahead, our focus will be on achieving further growth and profitability by delivering on our production growth initiatives through strategic alliances and partnerships.”
Looking ahead, he said, “Oil prices have averaged $65 per barrel for most of 2019 and we shall continue employing price protection strategy by hedging our production.
“Our focus will be largely on driving profitability via growth in our upstream business where we will pursue production growth initiatives through strategic alliances, whilst ensuring operational efficiency and fiscal prudence. We will also continue to work with our partners to achieve cost optimization on our Joint Venture operations, ensuring the gains from higher revenues are not lost to increasing operating costs.”
In the first half year 2019, Oando in the downstream sector traded approximately 7.3 million barrels of crude oil under various contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 228,970 MT of refined products.
During the six months ended June 30, 2019, production increased by per cent at 40,873boe/day, compared with 37,814boe/day in the same period of 2018. Oil production in particular increased by 15per cent from 14,675bbls/day in H1 2018 to 16,876bbls/day in H1 2019, whilst natural gas production increased by 8% from 118,866mcf/day in H1 2018 to 128,533 mcf/day in H1 2019.
Capital expenditure of $62.3 million (N22.5 billion) was incurred in the six months of 2019 compared to $24.7 million (N8.9 billion) in same period in 2018. This consists of $59.7 million (N21.6 billion) at OMLs 60 to 63, $1.9 million (N686.2 million) at OML 56, $0.04 million (N14 4 million) at OML 13, and $0.8 million (N288.9 million) on other assets.