Oando Plc, an indigenous energy group, announced that its profit after tax for the 2018 financial year rose by 46 per cent to N28.8bn compared to N19.8bn in 2017.
It recorded the after-tax profit was primarily driven by higher revenue as well as income tax credits.
The firm, while announcing its audited results for the 12-months period ended December 31, 2018, recently, said its gross profit increased by nine per cent to N96.3bn from N88.1bn in 2017.
It said its turnover increased by 37 per cent to N679.5bn from N497.4bn in 2017, driven by higher commodity prices and higher oil production.
Oando said total group borrowings decreased by 11 per cent to N210.9bn from N237.4bn while long-term group borrowings decreased by 23 per cent to N76.8bn from N99.6bn.
The Group Chief Executive, Oando, Mr Wale Tinubu, said, “Our 2018 results demonstrate the solid foundation we have built across volatile commodity price cycles, and our ability to deliver profitability despite a challenging local operating environment.”
He said over the last few years, the group had developed a reliable platform for future growth through the execution of a corporate strategy designed to streamline its operations, reduce debt and optimise asset portfolio.
“Our asset base is delivering strong free cash flows as evidenced by a 70 per cent reduction in our upstream borrowings since the closure of our landmark acquisition of ConocoPhillips’s Nigerian asset in 2014. We remain confident in our ability to deliver significant value to shareholders in the years ahead as well as resuming our dividend payments,” he added.
Oando said it produced 40,023 barrels of oil equivalent per day in 2018, compared to 40,188boepd in 2017.
It said oil production increased by 10 per cent from 15,492 barrels per day in 2017 to 16,967bpd in 2018.
The firm said its capital expenditure was $104.9m (N38bn) in 2018, compared to $55m (N17.1bn) in 2017.
It said, “In 2018, Oando Trading traded over 14 million barrels of crude oil under various contracts with the Nigerian National Petroleum Corporation as well as delivering 739,876 metric tonnes of refined products, acting as a key source of liquidity to the Oando Group.”
“Oando Trading continues to solidify its relationships with leading international and local banks, maintaining a sizeable and well-diversified structured trade finance facilities required to support future growth,” He added.