- Not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States of America
- The results discussed in this press release are presented in accordance with Nigerian GAAP and are not comparable to our results released today in accordance with IFRS
Oando PLC (“Oando” or “the Group”), Nigeria’s largest integrated energy solutions company today announced its unaudited results for first half of the year ended 30 June, 2010 with over 100% increase in profitability compared to the same period last year.
Financial highlights
* Gross profit up 94% to $187.2 million
* Operating profit increased 105% to $101.1 million
* Pre-tax profit grew 103% to $73.2 million
* Profit after tax up 71% to $44.4 million
Operational highlights
* A second rig has been deployed into operation
* Construction of pipeline required for evacuation of crude oil from Obodeti/Obodugwa (OML 56) has been completed
* Recently commissioned independent power plant now operational
Oando, which has its primary listing on the Nigerian Stock Exchange and a secondary listing on the Johannesburg Stock Exchange, increased half year sales by 4% to $1.17 billion in relation to the same period in 2009. The Group grew pre-tax profit by103% to $73.2 million, while profit after tax increased 71% to $44.4 million.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “We are pleased to announce another resilient financial performance for the first half of our financial year that validates our diversified business model. Overall, positive performance was recorded in the downstream, midstream and upstream divisions of the company”.
The Upstream division realised additional revenue from the newly deployed swamp rig and the steady ramp up in production from the oil & gas portfolio; the Midstream division commissioned its maiden Independent Power Plant (IPP) and additional connects on its gas pipeline network; whilst the Downstream division made the largest contributions to profitability with the recovery of outstanding payments from the Petroleum Support Fund (PSF), and an increase in throughput as a result of the implementation of the Sovereign Debt Note Programme by Federal Government of Nigeria (FGN), which guarantees future subsidy re-imbursements.
Commenting further, Mr Tinubu said, “Our focus for H2, 2010 will be to maximize current earnings from existing portfolio, whilst bringing on stream projects in the midstream and upstream to improve overall profitability. The Upstream division is expected to increase production as a result of the commissioning of the OML 56 pipeline and the deployment of the third swamp rig to commence operations in our oil services subsidiary; the Midstream division will commission and commence operations on its 128Km gas pipeline, which traverses the South East region of Nigeria; the Downstream division will be partly divested to release equity to the Group for investment in the Upstream division, with the support of the FGNs indigenous and local content industry reforms.
“With these initiatives and barring unforeseen circumstances we are confident in our ability to deliver an outstanding financial year end performance”, Mr Tinubu adds.
