Despite a challenging local environment, Oando Plc has again gladdened the heart of its shareholders by delivering good value that had resulted in an increment on its turnover for 2018.
The indigenous oil company recently published its financial results for the full year ended, December 31, 2018 with the announcement of a N28.8 billion Profit-After-Tax (PAT) which is a 46% increase from the 19.8 billion the company posted at full year end 2017.
A close look at Oando’s results indicates efficient 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.
Following the negative fallout from the plunge in oil prices in 2014, the company has successfully executed strategic initiatives that have enabled continued growth across all financial performance indices three years in a row; in a challenging local terrain this is indeed a feat worth applauding.
The company’s positive performance has ensured it maintains its position as Nigeria’s leading indigenous oil company.
At the end of 2018, the company’s turnover had increased by 37% 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.
Agency Reports show that the company’s gross profit grew by 9% to N96.3 billion from N88.1 billion in 2017 and its balance sheet remained strong with a 46% increase in PAT to N28.8 billion from N19.8 billion in the comparative period of 2017, a feat driven by higher revenue and income tax credits.
According to the reports, Oando’s total Group borrowings decreased by 11% to N210.9 billion from N237.4 billion in 2017, while long term borrowings decreased by 23% to N76.8 billion compared to N99.6 billion in the same period of 2017.
Similarly, 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% decrease and in its upstream business, the company has reduced its debt by 70% from $801.6 million in 2014 to $260 million as at FYE 2018.
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% reduction in our Upstream Borrowings since the closure of our landmark acquisition of ConocoPhillips’s Nigerian assets in 2014.”
The company’s FYE 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.
Speaking on the FYE 2018 results, Alhaji Kabiru Tambari, an Oando shareholder from Sokoto Zone Shareholders Association, commended the management of Oando for leading the company to yet another profit, he said: “We can see light at the end of the tunnel. My faith in the management of the company grows from strength to strength with each financial result. I’m hopeful that soon, in the very near future we the shareholders can finally reap the fruits of our labour.”
Posted by Oyedeyi Samson with Agency reports
