Oando Nigeria Plc posts N680 billion turnover, N28.8 billion profit in 2018

Oando Nigeria Plc has recorded a turnover of N679.5 billion and Profit After Tax of N28.8 billion for the financial year ended December 31, 2018, despite acclaimed harsh operating environment.

Specifically, the firm’s audited result showed that turnover increased by 37 per cent to N679.5 billion compared to N497.4 billion in 2017, while PAT rose by 46 per cent from N19.8 billion to N28.8 billion the year under review.

According to a statement by the company, the improved performance in turnover was driven primarily by higher oil prices resulting in higher oil revenue and higher gas prices, which led to higher gas revenues. In addition, the firm’s gross profit grew by 9 per cent to N96.3 billion from N88.1 billion in 2017.

“Following the negative fallout from the plunge in oil prices in 2014, the company has successfully executed strategic initiatives that has enabled continued growth across all financial performance indices three years in a row; in a challenging local terrain,” the statement said.

The company’s balance sheet remained strong with a 46 per cent increase in PAT to N28.8 billion from N19.8 billion in the comparative period of 2017 driven by higher revenue and income tax credits.

Its total Group borrowings decreased by 11 per cent to N210.9 billion from N237.4 billion in 2017, while long term borrowings decreased by 23 per cent to N76.8 billion compared to N99.6 billion in the same period of 2017.

“Worthy of note is the fact that, since its acquisition of ConocoPhillips Nigeria in 2014, Oando has embarked on a proactive drive to significantly reduce its debt and liabilities. From a N473.3 billion corporate facility in 2014 to N210.9 billion in FYE 2018, a 55 per cent decrease and in its upstream business, the company has reduced its debt by 70 per cent from $801.6 million in 2014 to $260 million as at FYE 2018.”

The Group Chief Executive of Oando, Wale Tinubu, said: “Our asset base is delivering strong free cash flows as evidenced by a 70 per cent reduction in our Upstream Borrowings since the closure of our landmark acquisition of ConocoPhillips’s Nigerian assets in 2014.

“The company’s full year 2018 results are further evidence that the company’s management team is focused on maintaining a strong balance sheet, profitability, value creation and a business that is indeed here for good.

“The company’s third year of strong financial performance is evidence that the company is back to business as usual, thus rebuilding stakeholder confidence in the brand as a viable business to invest in.

“Our 2018 results demonstrate the solid foundation we have built across volatile commodity price cycles, and our ability to deliver profitability despite a challenging local operating environment.

“Over the last few years, we have developed a reliable platform for future growth through the execution of a corporate strategy designed to streamline our operations, reduce our debt and optimize our asset portfolio.”

In addition to the improved performance, the company recorded operational highlights. In the Upstream, Oando recorded a two per cent increase in proven oil reserves to 479.8 mmboe from 470.7mmboe while net revenues in 2018 increased to $407.0 million from $333.7 million in 2017.