Oando Plc has recorded a revenue of N315.4 billion for the half year ended June 30, 2019, showing an increase of six per cent from N297.3 billion in the corresponding period of 2018. The company ended the period with a profit-after-tax of N7.168 billion, down from N8.5 billion in 2018.
The company has also continued to reduce its total borrowings after its acquisition of ConocoPhillips Nigeria in 2014, following a proactive drive to significantly reduce its debt and liabilities.
The group reduced its total borrowings for the period by five per cent to N200.7 billion at the end of June 30, 2019, from N210.9 billion at the end of 2018, indicating a 58 per cent reduction in debt since 2014 from N473.3 billion.
Commenting on the results, Group Chief Executive of Oando Plc, Adewale Tinubu 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 per cent and eight respectively compared to the similar period last year while we also achieved a significant reduction in our Reserve Based Lending (RBL) facility to approximately $0.4 million from $450 million at inception- a 99 per cent reduction.”
The company said though the country witnessed no movement in its oil production compared with same period of 2018, Oando witnessed an increase in its oil production, which was attributed to the ingenious measures put in place by the company’s management and its partners to ramp up production.
“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.
In the downstream sector, Oando Trading completed approximately 7.3 million barrels of crude oil trades under various contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 228,970 MT of refined products in H1 2019.
Also during the period, Oando concluded full divestment from its hitherto midstream business Axxela, formerly Oando Gas and Power, to Helios Investment Limited, signifying a full divestment of its naira earning businesses and reinforcing the company’s stance as a partner of choice for investors into the country.
Speaking on the divestment, Tinubu said: “We also concluded the divestment of our residual interest in Axxela for $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.”
On the future outlook for the company, Tinubu said: “Looking ahead, our focus will be on achieving further growth and profitability by delivering on our production growth initiatives through strategic alliances and partnerships. Oando continues to be audacious and unrelenting in its drive to create value not for itself and its shareholders but for the country at large. Following incessant wins, the company is on its way to ending 2019 on a positively high note for its stakeholders alike.”