Oil firm, Oando Plc, has recorded a profit after-tax of N4.2billion in its 2018 first quarter results.
The company, in a statement in Lagos, said it had cashed into the favourable micro business environment characterised by an increase in national oil production, exchange rate stability, as well as an increase in global oil prices which averaged $66 per barrel in 2018 Q1, about $3 more than the projected average of $63 for 2018 and 2019.
Its turnover grew by nine per cent to N150.5 billion from N138.4 billion (Q1 2017); gross profit increased by 108 per cent to N27.9bn compared to N13.4bn (Q1 2017); and profit after tax increased by 145 per cent to N4.2bn compared to N1.7bn (Q1 2017).
The performance, Oando explained, was reflective of its increase in production by four per cent to 3.6 million barrels of oil equivalent (average 39.656 boe/day) from 3.4 MMboe (average 38.125 boe/day in comparative period of Q1 2017 due to the reopening of the Trans Forcados pipeline.
In its upstream business, Oando recorded a net profit of N8.6bn ($23.8m) compared with N5.8bn ($16.2m) in the comparative period of Q1 2017.
It said the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities.
Commenting on the results, the Group Chief Executive, Oando, Wale Tinubu, said: â€œOur Q1 performance was characterised by a stable operating environment, continued incline in crude oil prices, and the highest level of compliance by member countries of the OPEC Accord.
â€œConsidering the background of current industry trends, the company is committed to maximising throughput rate to ensure a positive financial performance in the ensuing quarters of 2018.â€