- Oando Plc Reports PAT of 405% in 2017
Integrated energy company, Oando Plc, on Friday announced it grew profit after tax by 405 percent in 2017.
The company’s audited results released through the Nigerian Stock Exchange showed the profit after tax rose from 3.913 billion in 2016 to N19.77 billion in 2017, an increase of 405 percent. While revenue grew from N455.746 billion in 2016 to N497.422 billion in 2017.
According to the report, the company reduced its cost of sales from N426.99 billion to N409.341 billion in 2017. Also, net finance cost declined from N51 billion in 2016 to N33.78 billion in 2017 while administrative expenses declined from N109 billion in 2016 to N77.89 billion in 2017.
Speaking on the report, the Group Chief Executive of Oando, Wale Tinubu said: “The business recorded a year-end profit of N19.8 billion, a culmination of four consecutive quarters of positive results, validating our promise to shareholders of returning to and maintaining profitability. This comes in the wake of oil prices on an upward trajectory, an improved operating environment, the exit of a 13 month long recession and most importantly the continued strengthening of our business model through the effective implementation of our strategic initiatives of growth through our dollar earning upstream portfolio; deleverage through asset divestments and the expansion of our oil export trading business.”
The embattled chief executive who was accused of ‘insider dealings’ by two of the company’s shareholders, Dahiru Mangal and Gabriele Volpi, added that despite the challenges faced by the company in 2107, the company recorded some operational success.
Tinubu said: “In the upstream sector, Oando recorded an average production of 40,188 boe/day in the 12 months ended December 31, 2017 compared to 43,503 boe/day in the comparative period of 2016. This was primarily due to significant reductions in gas production and delivery caused by the rupturing of Gas Transmission System (GTS-4) gas line and pipeline and terminal constraints at its OMLs 60 to 63. The upstream business recorded a net profit of N26.33 billion ($86.1 million) compared with N91.83million ($0.3 million) in the comparative period of 2016. This increase in profitability was primarily due to improved revenue between the periods, and increase in gains on financial instruments which were offset by lower tax recoveries.”
