Despite the current economic downturn, Oando Plc has boosted its shareholders confidence with 116 per cent revenue increase in the first quarter of this year. The company has also posted, within the period, N1.7 billion as Profit After Tax (PAT).
The company’s turnover grew by 116 per cent to N138.4 billion and gross profit by 53 per cent to N13.4 billion compared to the first quarter of 2016.
Commenting on the group record, Group Chief Executive, Oando PLC , Wale Tinubu, said: “Following a successful restructuring in 2016, we are pleased with our Q1 2017 results which reflect a return to normalcy and growth in spite of continued security challenges, economic headwinds and a fluctuation in crude prices.”
The company has continued to reduce its net debt quelling any concerns of critiques; as at March 2017 it stands at N225.9 billion a 29 per cent reduction from N316.6 billion in March 2016.
Tinubu, explaining the strategy that brought about the turnaround for the firm, added, “In the Upstream, production in the first quarter of 2017 decreased to 38,125 barrel of oil (BOE) per day compare to 49,365 boe/day in first quarter of 2016.
‘’However, due to decreased production expenses Oando Energy Resources (OER) recorded a profit of N4.96 billion in the first quarter of 2017 compared with a profit of N815.5 million in the prior year comparative period. In the Midstream following the partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners, we successfully concluded the sale of Alausa IPP for a transaction price of N4.6 billion. In the Downstream, our trading business through Direct Sale & Direct Purchase (DSDP) and Offshore Processing Agreement (OPA) yielded N115.6 billion compared to N4.4 billion in 2016, he said”.
In the Downstream Oando Trading (OTD) witnessed a 150 percent growth in traded volumes and a significant increase of 1718 percent in turnover to N115.6 billion compared to N4.4 billion the comparative year. OTD also increased its secured credit lines by N76.6 billion to a total of N214.4 billion, giving it added leverage to further grow the business.
Speaking on the company’s first quarter results, Tinubu said, “The first quarter earnings from OER and OTD stress our proactive decision to focus on our dollar denominated export businesses. Our resilience is evident in our capacity to grow via a diversified model, and as we continue to chart our deliberate path in this challenging business environment, we look forward to better performance in the quarters to come.”
While attributing the successes to decline in Pipeline disruption, he said, “increase in oil prices and effort by the government to curb security issues in the Niger Delta, the sector is optimistic of a recovery in the near future.”