Oando Reports N28.8bn PAT for 2018

• Oando Reports N28.8bn PAT for 2018

Oando Plc has declared a profit after tax of N28.8 billion for the 2018 financial year.

The indigenous energy group grew profit after tax by 46 percent from N19.8 billion recorded in 2017.

According to the company, profit was driven by higher revenue as well as income tax credits.

Gross profit increased by 9 percent from N88.1 billion in 2017 to N96.3 billion in 2018.

While turnover surged by 37 percent to N679.5 billion from N497.4 billion in 2017, largely due to higher oil production and favorable commodity prices.

Total loan declined by 11 percent to N210.9 billion from N237 billion, while long-term group borrowing decreased by 23 percent to N76.8 billion from N99.6 billion.

Oando produced 40,023 barrels of oil equivalent per day in 2018, lower than the 40,188 boeqd produced in 2017.

The company said oil produced rose 10 percent from 15,492 barrels a day in 2017 to 16,967bpd in 2018.

Capital expenditure grew to $104.9 million (N38bn) in 2018, up from $55 million (N17.1bn) in 2017.

The company said, “In 2018, Oando Trading traded over 14 million barrels of crude oil under various contracts with the Nigerian National Petroleum Corporation as well as delivering 739,876 metric tonnes of refined products, acting as a key source of liquidity to the Oando Group.”

“Oando Trading continues to solidify its relationships with leading international and local banks, maintaining a sizeable and well-diversified structured trade finance facilities required to support future growth.”

Speaking on the results, Mr Wale Tinubu, the Group Chief Executive, Oando, 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.”

“Our asset base is delivering strong free cash flows as evidenced by a 70 per cent 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,” he added.