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NIGERIAN CRUDE OIL AND GAS.
Oando Delivers 52% Increase in Profit After Tax
To pay a total of N6 Dividend
Oando PLC, Nigeria’s leading indigenous integrated energy provider, today
announced its audited reports for the financial year ended 31st December
2010 with a 52% increase in the Group’s net profit. This grew from N5.48
billion in 2008 to N8.34 billion in 2009. This remarkable result is
attributable to the company’s improved operational efficiency and increased
trade volumes.
Financial Indicators
Turnover increased 83% to N339bn from N186bn in 2007
Gross profit grew 58% to N11bn from N7bn in 2007.
Gross Profit Margin increases by 85% to N40bn
Profit attributable to ordinary shareholders rose by 53% to N8bn from N5bn
in 2007
Earning per share increases to N9.22 from N7.24
Operational Highlights
Operating results show sterling improvement of 165% from N8.1b in 2007 to
N21.4b in 2008
Efficiency initiatives improved performance in traditional marketing and
non-marketing business lines, especially the upstream operation which
contributed strongly to earnings
The company concluded on the purchase of two rigs while an additional rig
was bought during the year
The company acquired significant stake in offshore blocks OML 125 & 134
Commenting on the results, Mr. Wale Tinubu, Group Chief Executive, Oando
PLC, said, “We are pleased to announce another set of impressive results for
the year ended December 2010. This strong performance demonstrates the
robustness of our diversified business model that enables us deliver
consistent value despite a depressed macroeconomic environment worsened by
exchange rate fluctuations in the last quarter.”
In line with Oando’s corporate objectives, year 2008 was largely devoted to
expanding the Group’s diversified platform as the company is geared to
become the largest integrated energy solution provider in Africa. The
performance during the year at each of the divisions supports this goal and
reinforces our belief in the sustainability of this model.
Commenting further, Mr. Tinubu said, “The year will go down as a milestone
in Oando’s upstream diversification program. It is the year we emerged
Nigeria’s first indigenous company with producing deepwater assets by the
acquisition of stakes in offshore blocks OML 125 & 134 and we increased our
state-of-the-art rigs fleet to three”.
Pursuant to this, Oando was able to grow its business considerably within
the year in the exploration and production entity where revenue growth was
propelled by these substantial investments, and in its traditional marketing
business, where increased trade volumes and efficient supply chain
management resulted in significant performance improvements. In general,
Oando’s resilient performance in 2008 underlies the Group’s solid
fundamentals.
Supply and Trading Limited - the trading arm of the Group- took advantage of
emerging opportunities along the energy value chain as the largest private
importer of petroleum products into Nigeria. The Gas division also performed
creditably, having completed the Lagos Phase Three Project connecting the
Industrial hubs in Lagos. Effort at replicating same feat in the Eastern
part of the country is near completion stages.
“Our financial objectives for 2009 are clear: generate sustainable organic
growth and improve our margins. To accelerate this growth we will strengthen
our upstream and gas divisions whilst continuing our rigs expansion
programme”, Mr. Tinubu further said.
On the prospect for 2009, Mr. Tinubu enthused: “We will be prioritizing the
completion of our ongoing 128km pipeline construction in the southeast and
the captive power plant to boost our revenue generation, whilst expecting
reasonable returns from our recent upstream investments and provision of rig
services to the international oil companies. We therefore approach 2009 with
confidence, as we expect strong prospects that outpace the market for every
entity in the group on the back of prudent investments, improved execution
and operational efficiency gains leading us to another robust and exciting
year end”.
The board voted to recommend a dividend of N3.00 for each ordinary share of
50 kobo in addition to the interim dividend of N3.00 paid within the
financial year. This brings to N6.00 each the total dividend for the year
subject to shareholders’ approval at the next Annual General Meeting.
For more information, please contact:
Meka Olowola
Head, Corporate Communications
Oando Plc
Stallion House, 2 Ajose Adeogun Street
Victoria Island, Lagos
Phone: 01 2625857
Email: nolowola@Oandoplc.com
www.oandoplc.com
Source: Oando
Website : www.oandoplc.com
