A leading indigenous oil and gas company in Nigeria, Oando Plc. has on Monday, 31st July, 2017 declared a profit after tax (PAT) to the tune of N4.6 billion for the first half of the year ended June 30,2017. This was against its loss of N26.9 billion recorded in the same period of 2016.
A review of Oando's books estimates an increase in turnover by 26%, amounting to N267.1 billion as opposed to N212.3 billion (H1 2016), while gross profit increased by 76%, also amounting to N33.4 billion as against N19 billion (H1 2016). An overall unaudited assessment gave an increase in it's Profit After Tax by 117%, N4.6 billion which was a great feat compared to its loss of N26.9 billion(H1 2016).
This positive financial outlook of the company was attributed in part to the realization of about N3.2 billion from the optimization of the crude oil hedge program in the upstream sector, while also recording a whooping 72% improvement in revenues, from N6 billion in H1 2016 to N217.4 billion in H1 2017 in the downstream sector of the industry.
Commenting on this report, Mr. Wale Tinubu, Group Chief Executive, Oando Plc. said: "With security concerns in the Niger Delta receding, Nigeria’s economic recovery has been buoyed by a boost in oil output, while the legislative approval of certain segments of the Petroleum Industry Bill (PIB) provides greater long-term policy certainty for the sector. Our returns underline our continued successful foray into the Upstream. Within the prevalent crude pricing regime, we remain committed to optimizing our overall production base, seeking unique profit-driven opportunities to further partner with IOCs, while firming up our balance sheet to provide greater shareholder value."
Also contained in the Company's operational highlight was the successful sale of the company's interest in OMLs 125 and 134 to Nigerian Agip Exploration Limited "NAE" for a total profit of N4.6 billion. Oando Trading (OTD) also witnessed a 40% growth in traded volumes and a laudable 147% increase in turnover to N217.5 billion as opposed to N88.1 billion recorded in H1 2016.
Source:Oando PLC
