- Declares 1 for 2 Share Bonus
Oando PLC, one of Nigeria’s largest indigenous energy groups with a primary listing on the Nigerian Stock Exchange and a secondary listing on the JSE Limited, announces an after tax profit of US$74.92 million for the financial year ended 31 December, 2009, marginally up on the previous year’s figure of $74.58 million. Earnings per share came in at US8.39 cents compared to US8.24 cents in 2008.
The Group, whose six business divisions are Exploration & Production, Energy Services, Gas & Power, Marketing, Supply & Trading, and Refining & Terminals, achieved this result despite turnover falling by 15% to US$2.28 billion and gross profit reducedto US$241.61 million.
The decline in turnover is attributable to the depreciation of around 20% in exchange rate between the Nigerian Naira and the US dollar; an increase in borrowing costs; difficulties in accessing credit for operations and projects, and uncertainties surrounding deregulation Commenting, Mr. Wale Tinubu, Group Chief Executive said: “We are pleased to announce another set of positive results that were achieved in spite of a challenging operating environment for Nigerian corporates and an industry beleaguered by uncertainty in government policies.
“We had notable achievements in the upstream businesses; successful production tests on the Akepo 1 oil well, commencement of production from Obodeti/Obodugwa oilfields and the commencement of deployment of our rigs fleet with International Oil Companies contracts in the Niger Delta.”
Oando’s Gas and Power division continues to increase customer connects on its Greater Lagos 3 pipeline grid thereby boosting the Group’s performance. While with prudent cash and accounts receivable management, its Marketing company sustained market leadership and still recorded significant contributions to the bottom line.
During 2010, Oando expects to explore further opportunities for the acquisition of producing assets. In addition, the Group has since commissioned its first independent power plant constructed to produce and sell power to the Lagos State Water Corporation. This is already boosting revenue for the Gas and Power division.
The downstream businesses are anticipating a definite position from the Nigerian government on deregulation of the sector. Meanwhile, the Group aims to consolidate the dominant position of its Supply and Trading division in the West African market.
Energy Services aims to continue its rigs deployment as two of its fleet of five rigs are currently in operation, and two are in an advanced stage of a competitive tender.
“As we commence a new operating year, we are confident in our ability to creatively maximise industry opportunities, and leverage synergies in a bid to consistently deliver, year-on-year, value creation for shareholders”, concluded Tinubu.
The company’s Board recommended the payment of a final dividend of N3.00 per each ordinary share of 50 kobo as well as an issuance of bonus shares of 1 ordinary share of 50 kobo each for every 2 shares of 50 kobo each to its shareholders.
Ends
