- Oando Grows Revenue by 6% in H1 2019
Despite the recent battle with the Securities and Exchange Commission (SEC), Oando Plc was able to grow revenue by 6 percent in the first half of the year.
The company’s unaudited results released through the Nigerian Stock Exchange showed Oando Plc grew revenue from N297.3 billion recorded in the same period of 2018 to N315.4 billion in the first half of 2019. Representing an increase of 6 percent.
Profit after tax stood at N7.168 billion during the period, down from the N8.5 billion achieved in 2018.
Oando’s total borrowings declined by 5 percent from N210.9 billion filed in the first half of 2018 to N200.7 billion in the H1 of 2019. It has now reduced debt by 58 percent from N473.3 billion recorded in 2014, another indication the company is keeping to its new lower debt strategy.
The company said while there was no movement in the company’s oil production compared with the same period of 2018, oil production increased.
“During the six month period ended June 30, 2019, production by the upstream subsidiary, Oando Energy Resources (OER), increased by eight per cent at 40,873boe/day, compared with 37,814boe/day in the same period of 2018. Oil production increased by 15 per cent from 14,675bbls/day in H1 2018 to 16,876bbls/day in H1 2019, and natural gas production increased by eight per cent from 118,866mcf/day in H1 2018 to 128,533 mcf/day in H1 2019,” the company added.
Speaking on the performance, Wale Tinubu, the Group Chief Executive, Oando PLC 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 15% and 8% 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 99% reduction. We also concluded the divestment of our residual interest in Axxela for US$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.”