Oando Plc has continued to defy skeptics as it recorded N8.5 billion profit-after-tax (PAT) in its half-year (H1) results ended June 30, 2018.
The impressive result comes in the wake of increase in the price of oil and gas commodities, Following the fall in crude oil prices, Oando like other companies took a significant hit in its revenues and ultimately reported losses.
But with perseverance and hard work, the company has since actively worked towards reversing its fortunes and reminding its shareholders that an investment in the company will indeed pay off.
With its H1 2018 results, the company has posted its 7th quarter consecutive profit.
An analysis of Oando’s financials shows that the company’s turnover grew by 11 per cent to N297.3 billion from N267 billion recorded in H1 2017; gross profit increased by 53 per cent to N51 billion compared to N33.4 billion earned in H1 2017, and profit-after-tax increased by 86 per cent to N8.5 billion compared to N4.6 billion in H1 2017.
In its upstream business, Oando recorded a net profit of N27.1 billion or $75.2 million, compared with N16.3 billion or $53.2 million in the comparative period of H1 2017.
According to the company’s statement, the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities.
Oando picked up on the industry recovery witnessed in 2017.
Brent prices averaged $69.87 per barrel, resulting in a 38 per cent increase in realised crude selling price compared to the same period in 2017.
Oando’s performance was further buoyed by sale price increases of 19 per cent for Natural Gas Liquids (NGL) and 13 per cent for natural gas deliveries.
Commenting on the results Group Chief Executive, Oando PLC, Wale Tinubu, stated that he is pleased to report that Oando PLC has made significant progress in 2018, evidenced by the company’s substantial free cash flow generation and profitability.
“Oil prices have rallied over the last year, a direct consequence of increasing demand and reduced supply. Higher oil prices, and the resolution of Joint Venture funding challenges with the Nigerian National Petroleum Corporation (NNPC) has driven increased investment in the upstream sector. This stable operating environment, coupled with our fiscal prudence, has reinforced our solid financial footing as we continue to build on the momentum garnered in 2017,” Tinubu explained.
The company’s performance in the first half of 2018 is a continuation of the strong financial performance delivered last year and in the first quarter of 2018. Oando continues to increase its market share in the downstream sector through its trading business, Oando Trading (OTD).