Oando records N4.1 billion profit after tax for first quarter

Oando Plc, Nigeria’s indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange recorded a profit after tax of N4.1 billion for the first quarter of 2016.

This, according to the company, represents a 120 per cent increase compared to the company’s first quarter report for 2015.The firm’s financial highlights also indicate that turnover decreased by 34 per cent, with N64.0 billion realised compared to N97.1 billion for the same period last year.

Oando said in a statement yesterday that the results were delayed due to an exhaustive audit process overseen by external auditors, Ernst & Young, and extension approvals were sought and received by Oando from the Securities and Exchange Commission (SEC) and the Financial Reporting Council (FRC).

It noted that global crude pricing fluctuation has changed the corporate landscape for oil companies, and has had far-reaching economic implications on Oando and many other indigenous firms in the industry.

The company’s first quarter results were a welcome contrast for investors and shareholders alike following Oando’s dismal 2015 financial performance, which was significantly impacted by impairments and foreign exchange pressures.

Group Chief Executive, Oando Plc, Wale Tinubu, in the media statement highlighted the company’s drive to ensure profitability.He said, among others: “This first quarter of 2016 demonstrates our dedication to return our business to profitability by the end of the 2016. We have implemented constructive corporate initiatives, which are driving forces for our business in this new global reality of economic restraint and lower oil prices in our industry.”

“The successful and ongoing implementation of these initiatives reiterates our strategy of growth, deleverage and a return to profitability by the end of 2016. As a group, we have placed our focus on growing our upstream higher-margined business while still holding fundamental interests in the midstream and downstream sectors. We look forward to a rewarding year where we solidify our aspirations and return to profitability.”