Oando Posts N4.6bn PAT in Q1

• Oando Posts N4.6bn PAT in Q1

Nigeria’s leading indigenous energy group, Oando Plc, posted N4.6 billion profit after tax for the three months period ended March 31, 2019.

This was 11 percent higher than the N4.2 billion filed in the first quarter of 2018.

The unaudited financial results were released on Wednesday through the Nigerian Stock Exchange.

Operating profit increased by 15 percent to N17.1 billion, up from N14.9 billion in Q1 2018.

The total turnover grew 12 percent to N168 billion, again better than the N150.6 billion recorded in Q1 2018.

Production rose by 11 percent at 43,745boe per day, compared with 39,556boe per day in the same period of 2018. Oil production in particular increased by 13 percent from 14,823bbls per day in Q1 2018 to 16,815bbls per day in Q1 2019, whilst natural gas production increased by 18 percent from 124,910mcf per day in Q1 2018 to 147,163mcf per day in Q1 2019.

The company, however, spent $19.3 million (N7.0 billion) on capital projects during the quarter, higher than the $6.6 million (N2.4 billion) incurred on capital expenditure in the same period of 2018. This consists of $18.5 million (N6.7 billion) at OMLs 60 to 63, $0.5 million (N180.8 million) at OML 56, and $0.3 million (N108.5 million) on other assets.

Speaking on the results, Wale Tinubu, the Group Chief Executive, Oando PLC said: “Our results reflect the progress made over the last few quarters and provides an indication of our expectation for the year. now that our debt profile is down by 78% from $2.5billion as of December 2014 to $558million currently, and our de-leverage program is 90% complete with most of our non-core operations divested for good value, we can now focus on steady growth in our upstream entity. with ice Brent crude oil price currently at a decent level of usd74.48 per barrel, our efforts will be geared towards increasing our production to sustain profitability and position us on the path to resumption of dividend payment to our shareholders.”