Oando posts N3.5 Billion Profit After Tax with 49% increase in turnover
Oando PLC, a leading local energy group in Nigeria has reported its audited results for the year ended 31 December, 2016, with the following highlights:
- Turnover increased by 49%, N569.0 billion compared to N382.0 billion (FYE 2015)
- EBITDA increased by 51%, N71.0 billion compared to N47.0 billion (FYE 2015)
- Profit-After-Tax increased by 107% N3.5 billion compared to a loss (N47.6 billion) (FYE 2015)
- Net debt reduced by 35% N230.6 billion compared to N355.4 billion (FYE 2015)
Oando successfully established the recapitalization of its downstream business for $210 million by HV Investments II B.V., (“HVI”). Oando Trading observed continued growth resulting in a 106% rise in traded volumes of Crude Oil and Refined Petroleum Products, accomplished through a number of structured and well executed initiatives. Physical volumes of 13 million barrels of crude oil and 3 million MT of refined petroleum products were discharged. Trading revenues reached a four-year high at $1.4 billion.
Mr. Wale Tinubu, Group Chief Executive, Oando PLC said, “2016 saw the country plunge into a recession, the first in over 2 decades, besieged with liquidity constraints, devaluation of the naira and a slump in oil earnings due to low oil prices intensified by the insurgency in the Niger Delta. We were proactive in the timely execution of our restructuring program of Growth in our upstream division; Deleverage, through divestments resulting in a net debt reduction of N125bn; and Profitability by focusing on dollar denominated earnings. In the, upstream we witnessed a decline in production but an increase in our 2P Reserves from 445mmboe in 2015 to 469mmboe. We are hopeful that the FGN will establish a long term resolution to the conflict in the Niger Delta which will positively impact the oil and gas industry, consequently ramping up our daily production. In the Midstream we concluded the partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners to further expand our gas footprint, whilst in the Downstream our trading business continued to make in-roads in crude lifting. As we enter a new phase in our business evolution we are optimistic about 2017 and look forward to even more successes having braved the challenges of 2016.” PWKD07042017