One of Nigeria’s leading indigenous energy group, Oando PLC, listed on both The Nigerian and Johannesburg Stock Exchange, recently announced its unaudited results for the six months period ended June 30, 2018.
Commenting on the results, Wale Tinubu, Group Chief Executive, Oando PLC, stated that the company has made significant progress in 2018, considering their substantial free cash flow generation and profitability.
According to Wale, “I am pleased to report that Oando PLC has made significant progress in 2018, evidenced by our substantial free cash flow generation and profitability. Oil prices have rallied over the last year, a direct consequence of increasing demand and reduced supply. Higher oil prices, and the resolution of Joint Venture funding challenges with the Nigerian National Petroleum Corporation has driven increased investment in the upstream sector. This stable operating environment, coupled with our fiscal prudence, has reinforced our solid financial footing as we continue to build on the momentum garnered in 2017.”
Oando had its Turnover increased by 11%, N297.3 billion compared to N267.0 billion (H1 2017) with a Gross Profit increased by 53%, N51.0 billion compared to N33.4 billion (H1 2017) and Profit-After-Tax increased by 86%, N8.5 billion compared to N4.6 billion (H1 2017).
Meanwhile, the company’s prospects for year 2018 has witnessed a much healthier oil industry, recovering from the last few years of low prices, enforced capital discipline, productivity efficiencies and portfolio realignments.
“We will continue to drive growth and profitability via our dollar earning portfolios. Our plans in the upstream involves production growth via investment in targeted profitable projects whilst maintaining fiscal prudence, to ensure we remain less sensitive to short-term price fluctuations. In our Trading business, current plans for growth include expansion of our trading structures in Africa, capitalizing on expanding scope in Southern and East Africa, as well as developing key supply mechanisms into the Middle East and North Africa,” the company stated.