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 three months period ended 31 March, 2013, with the following highlights:Financial Highlights:
- Turnover for the period was N121.1 billion compared to N158.6 billion, a decline of 24%
- Gross Profit decreased by 13%, N13.0 billion compared to N15.1 billion (2012)
- Profit-Before-Tax declined by 14%, N4.3 billion compared to N4.9 billion (2012)
- Profit-After-Tax decreased by 19%, N2.4 billion compared to N3.0 billion (2012)
Operational Highlights:
- Successful completion of the Rights Issue capital raise, N54.6 billion;
- Restoration of production of 3,200 bopd (1,400 bopd net to OER) in the Ebendo field post repairs to damaged Kwale-Akri pipeline.
- The EB-5 well was completed and tested, expected to contribute an additional 2,500 barrels of oil per day (“bopd”) gross (1,069 bopd net to OER);
- Oando’s three operating rigs performed at optimum levels with a rig up rate above 95% for the quarter;
- Increase in customer connects on current gas pipeline infrastructure and construction of 2nd IPP, 3rd pipeline franchise and Compressed Natural Gas facility;
- Reduced importation of products due to mounting unpaid subsidies.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “2013 commenced with a 101% successful Rights Issue exercise, the 4.6 Billion newly issued shares have since been listed and are trading on the Nigerian Stock Exchange. The newly raised capital will be utilized for E&P asset acquisitions as well as for debt reduction to counter the substantial interest burden related to liabilities on the E&P assets that has hampered our profitability. Historically, the interest on the assets under development was capitalized, but this is no longer the case, the assets were transferred to OER during the restructuring, whilst the liabilities remain in the Group.
Our Upstream division experienced growth in production, following the successful completion of the EB-5 well in the Ebendo field, increasing the production capacity to 7,000bopd (3,000bopd net to OER), production is currently limited to 3,500bopd due to pipeline constraints, the construction of the alternative evacuation route, the 45kbopd Umugini pipeline is well underway. The OES Teamwork drilling rig achieved 3 years of drilling activity without Loss Time Injury (LTI), the second rig in our fleet to achieve this safety milestone. In the midstream, our Gas & Power business’ Compressed Natural Gas facility nears completion and will increase our gas supply volumes and customer count. The Downstream continues to be hampered by shrinking profit margins as a result of increasing operational inefficiencies and unpaid subsidies by the Federal Government, which has led to working capital pressures and consequentially a reduction in import volumes. Notwithstanding, we have still maintained our leadership in petroleum product importation and distribution in the country for the period.
2013 is proving to be a year of immense promise for our company. We look forward to the delivery of our key infrastructure projects and our value adding Upstream acquisitions.
Ends.
