Yemisi Izuora
Oando Plc, has disclosed that it recorded a N28.8 billion Profit-After-Tax (PAT) in its audited account for the year ended December 31st , 2018, representing a 46 per cent increase from the N19.8 billion recorded in 2017.
The results shows positive performance across most of its financial indices; reaffirming the company’s concerted efforts and commitment to reversing the tide following the oil price crash in 2014.
Analysis of the results sent to the Nigerian Stock Exchange, NSE, show that turnover increased by 37 percent to N679.5 billion compared to N497.4 billion in 2017, driven primarily by higher oil prices resulting in higher oil revenue and higher gas prices, which led to higher gas revenues. In addition, gross profit grew by 9% to N96.3 billion from N88.1 billion in 2017.
The company’s balance sheet remained strong with a 46 percent 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 percent to N210.9 billion from N237.4 billion in 2017, while long term borrowings decreased by 23 percent to N76.8 billion compared to N99.6 billion in the same period of 2017. 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 2018, a 55 percent decrease and in its upstream business, the company has reduced its debt by 70 percent to $260 million from $801.6 million in 2014.
Speaking on the significant reduction in borrowings, the Group Chief Executive of Oando, Wale Tinubu said: “Our asset base is delivering strong free cash flows as evidenced by a 70 percent reduction in our upstream borrowings since the closure of our landmark acquisition of ConocoPhillips’s Nigerian assets in 2014. “The company’s 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” he noted.