Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced unaudited results for the six months period ended 30 June, 2013, with the following highlights:
Financial Highlights:
- Turnover for the period was N280.3 billion compared to N350.6 billion (2012), a decline of 20%;
- Gross Profit decreased by 3%, N30.2 billion compared to N31.0 billion (2012);
- Profit-Before-Tax declined by 41%, N6.2 billion compared to N10.4billion (2012); and
- Profit-After-Tax decreased by 35%, N4.3 billion compared to N6.6 billion (2012).
Operational Highlights:
- Capital Restructuring: Equity: N54.5 Billion Rights Issue successfully completed and N30.7 Billion Special Placement underway; Debt: N32.0 Billion OES debt successfully restructured;
- Oando Energy Resources (OER): 5 successful drilling campaigns: Abo Field (OML 125), Ebendo Field (OML 56) and Qua Iboe Field (OML 13);
- OER’s filing of $550 Million Preliminary Base Shelf Prospectus on the TSX;
- Oando Energy Services (OES) drilling rig Integrity achieved 4 years without Lost Time Incident (LTI);
- Advanced construction stages achieved in our 2nd IPP, Compressed Natural Gas Facility and Apapa Subsea Jetty, operational commissioning expected H2, 2013; and
- Reduced downstream importation due to substantial unpaid outstanding subsidy obligations by the FGN.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said:
“We remain steadfast in our commitment to developing the higher margin mid-upstream operations, which have performed creditably as opposed to our downstream where we have had to reduce our imports by over 30% as a result of delays in the payment of our FGN guaranteed subsidy payments due, thus directly affecting our revenue and net profit. We, however, continue to explore efficiency plays to increase our margins and add value to the sector, with the near completion of our subsea jetty, which will contribute to our net profit as a result of tolling fees and substantial cost savings on imports.
In the Midstream, our Gas & Power business’ Compressed Natural Gas facility nears completion and will act as a precursor for gas customers pending the construction of the GL4 pipeline expansion in Lagos increasing the pipelines capacity by 30mmscf/day. Final Approvals have been received for the GL4 extension, which will increase our revenues and earnings by 15%.
In the Upstream, OER is progressing with successful drilling campaigns, 2 wells were drilled on the Abo Field to maintain production levels, the Ebendo Field’s EB-6 well adds 3,621bopd (1,548bopd net to OER) to the fields gross production capacity of circa 7,000bopd, whilst 2 wells were drilled on the Qua Iboe Field, QI-3ST1 with a tested gross production of 2,028bopd (1,600bopd net to OER) and QI-4 awaiting production testing. OES awaits the delivery of the Respect rig, which is expected in country in Q4, 2013, whilst the Integrity achieved 4 years without Lost Time to Injury (LTI), signifying our commitment to world class operating standards, with the proactive use of our EHSSQ and operational processes.
Our capital restructuring exercise is well underway, as we have concluded the N54.5 Billion Rights Issue exercise; secured shareholder approval for a Special Placing to raise N30.7 Billion and restructured of N32.0 Billion of debt facilities in OES. OER has also filed a preliminary base shelf prospectus on the TSX to raise up to N80.0 Billion, if necessary for the closure of the acquisition of ConocoPhilips Nigerian Assets, in Q4, 2013.
As we drive to closure of our key diversification initiatives that will transform the company into Sub-Saharan Africa leading private sector Indigenous Mid-Upstream player, we note that this can only be achieved through the execution of a bold and unprecedented strategy which will undoubtedly transform the energy landscape in which we exist, promote indigenous participation in our Nation and create significant value for our shareholders”.
Ends
