The results discussed in this press release are presented in accordance with Nigerian Accounting Standards Board
April 1, 2011
PRESS STATEMENT
Oando PLC reports 77% growth in Pre-Tax Profit, Proposes N5.4billion Dividend
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 results for the full year ended 31st December, 2010. The Group delivered a Profit-Before-Tax of N23.9 Billion representing 77% increase compared to N13.5 billion in 2009.
Financial Highlights:
- Turnover grew by 12%, N378.9 billion compared to N336.9 billion (2009)
- Profit-Before-Tax grew by 77%, N23.9 billion compared to N13.5 (2009)
- Profit-After-Tax grew 42%, N14.4 billion compared to N10.1 billion (2009)
- Adjusted earnings per share grew 67%, N9.31k compared to N 5.58k
Operational Highlights:
- Sustained revenue from Oando’s first Independent Power Plant (IPP), Akute Power Limited, which generates electricity for the Lagos State Water Corporation
- One of Oando’s five swamp rigs was deployed into full drilling operations with an International Oil Company (IOC), bringing our operational rig count to 2 operational rigs in the Niger Delta area.
- Increased production from the deep-offshore asset, OML 125 and first oil from OML 56
- Improved payment cycles from the Federal Government Nigeria (FGN) for the subsidization of imported petroleum products, buoyed by the Sovereign Debt Notes
- Growth in contribution from the higher margin businesses (midstream and upstream)
- Achieved a 128% subscription for the N21 billion Rights Issue offering
- Restructured N60 billion of short term debt into a 5 year medium term note facility.
The Board has recommended a dividend of N3.00 for each ordinary share of 50 kobo, totaling N5.4 billion; this compares to N2.7billion paid last year and follows the award of ‘1 for 2’ bonus shares to shareholders in 2010. The dividend proposal is subject to shareholders’ approval at the company’s Annual General Meeting scheduled for 25th May, 2011.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said “These results underscore the resilience of our integrated business model, which leverages scale, diversity and market leadership to consistently deliver in the face of our challenging operating environment.
In 2010, spurred on by a 128% subscription for our N21 billion Rights Issue and the execution of a N60 billion 5 year medium term note facility we recorded a number of significant milestones. In the Upstream division, we commissioned our first pipeline in the Obodeti-Obodugwa field and commenced production from OML 56; we deployed our second swamp rig into drilling operations, and signed a contract for delivery of a third with an International Oil major. Midstream; we commissioned our first IPP the 12.15MW Akute Power Plant and achieved 90% completion of our 128Km Eastern gas pipeline, whilst connecting our 110th customer on our Lagos gas pipeline. Downstream; our marketing and trading division extended its Leadership with the support of the Sovereign Debt Note programme, which guarantees prompt payment of petroleum subsidies.
We stand positioned to maximize the opportunities presented by the rapidly evolving legal framework of the upstream sector in Nigeria and will partially divest our marketing business to contribute to the financing of our investment drive in producing assets, whilst ramping up production in our existing portfolio. We look forward to the deployment of 2 additional swamp rigs into operations and in the midstream division, commission our 128km South Eastern pipeline as well as the commencement of the Greater Lagos phase 4 development.
As we roll out our pipeline of initiatives, 2011 and beyond, promises to be exciting years of growth and substantial value creation for our shareholders.”
Ends
