- Oando Grows Half-year Profit by 86% to N8.5bn
Oando Plc has said its profit after tax for the six months period ended June 30, 2018 increased to N8.5bn from N4.6bn in the same period last year.
The company, while announcing its unaudited results for the first half of the year, stated that its turnover increased by 11 per cent to N297.3bn, compared to N267bn in H1 2017, while gross profit rose by 53 per cent to N51bn.
The Group Chief Executive, Oando Plc, Wale Tinubu, said, “I am pleased to report that Oando Plc has made significant progress in 2018, evidenced by our substantial free cash flow generation and profitability. Oil prices have rallied over the last year, a direct consequence of increasing demand and reduced supply.
“Higher oil prices and the resolution of Joint Venture funding challenges with the Nigerian National Petroleum Corporation have driven increased investment in the upstream sector. This stable operating environment, coupled with our fiscal prudence, has reinforced our solid financial footing as we continue to build on the momentum garnered in 2017.”
According to the results, Oando Energy Resources, the company’s upstream subsidiary, recorded five per cent cumulative production decrease to 6.8 million barrels of oil equivalent in H1 2018 from 7.2MMboe in the same period last year.
Oando said it would continue to drive growth and profitability through its dollar-earning portfolios.
It said, “Our plans in the upstream involves production growth via investment in targeted profitable projects while maintaining fiscal prudence to ensure we remain less sensitive to short-term price fluctuations.
“In our trading business, current plans for growth include expansion of our trading structures in Africa, capitalising on expanding scope in Southern and East Africa, as well as developing key supply mechanisms into the Middle East and North Africa.”
