Oando Plc has reported a profit of N10.4 billion for the nine months ended September 2018, a 46 per cent increase, compared with N7.1 billion in the same period of 2017.
According to a statement from the Management, Oando’s 46 per cent jump year-on-year quarterly net profits beat market expectations.
Despite being in the middle of an indirect shareholder dispute, which has led to a yet to be concluded SEC forensic audit, the company recorded a 32 per cent increase in its turnover to N505.1 billion from N383.5 billion in comparative period of 2017, driven by higher commodity prices; while its gross profit grew by 9 per cent to N77.6 billion from N71.2 billion in 2017.
Speaking on the company’s financials, Adewale Tinubu, Group Chief Executive of Oando Plc said; “Today’s positive result is further evidence of the progress made by Oando in 2018 driven by our continued focus on execution and operational efficiency, supported by buoyant commodity prices.
“Thanks to good operational efficiency, these results confirm Oando’s ability to take full advantage of the improved macro environment to deliver on key corporate imperatives of increased revenues and profit to create value for her shareholders. As the year draws closer to an end the management of Oando must be applauded for their dedication to keeping the company on course by delivering yet another consecutive quarter of strong financial performance.
“In the exploration and production sector, Oando’s upstream subsidiary, Oando Energy Resources made a stellar performance as it benefited from the ramp-up of higher margin production resulting in a 45 per cent increase in realized crude selling price compared with the same period in 2017. According to the company’s press statement, performance was further buoyed by sale price increases of 6 per cent for Natural Gas Liquids and 31% for natural gas deliveries.
Commenting further, Oando’s Group Chief Executive said “The outlook for the remainder of the year is positive and we remain committed to delivering on our value-based strategy towards improving our liquidity by reducing our gearing, improving our profitability by increasing production, and achieving growth via strategic alliances.
“Oando’s continued positive results and corporate initiatives reinforce the company’s focus on redefining the role of independent players as vital in supporting the socio-economic growth of the nation. In 2018, the company has been particularly active in showcasing to its stakeholders the output from its day to day operations as well as the positive impact it is having in the communities it operates in.”
