Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced unaudited results for the six months period ended 30 June, 2015, with the following highlights:
Q1 Financial Highlights:
- Turnover increased by 14%, N97.1 billion compared to N85.3 billion (Q1 2014)
- Gross Profit increased by 41%, N20.5billion compared to N14.5 billion (Q1 2014)
- Loss-Before-Tax decreased to (N19.5 billion) compared to (N59.0 million) (Q1 2014)
- Loss-After-Tax decreased to (N21 billion) compared to (N2.7 billion) (Q1 2014)
H1 Financial Highlights:
- Turnover decreased by 7%, N180 billion compared to N194.6 billion (H1 2014)
- Gross Profit decreased by 27%, N37 billion compared to N50.5 billion (H1 2014)
- Profit-Before-Tax decreased to (N38.5 billion) compared to N12.5 billion (H1 2014)
- Profit-After-Tax decreased to (N35 billion) compared to N9.0 billion (H1 2014)
Operational Highlights:
Upstream:
- Oando Energy Resources (OER) increased 2P net reserves by 82% from 230.6 MMboe to 420.3 MMboe.
- Growth in average production from 4,531 boe/day in H1 2014 to 55,399 boe/day in H1, 2015.
- Oando Energy Services celebrated 5 years of continuous operations without a Lost Time Incident (LTI) on “OES Teamwork” swamp drilling rig.
- OES celebrated 3 years of continuous operations without a Lost Time Incident (LTI) on “OES Passion” swamp drilling rig.
Midstream:
- Oando Gas and Power successfully completed the first segment of the Greater Lagos Pipeline extension.
Downstream:
- Oando Plc signs agreement to sell 60% stake in Oando Downstream to Helios/Vitol JV for a total consideration of $461 Million.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “Our Nation is experiencing Change, as witnessed from the tone of redirection in the oil and gas industry, which will lead to improved accountability and operational efficiencies in our sector. Our business is also experiencing this Change with the sale of 60% of our Downstream business in line with our strategic goals of placing our fundamental growth expectations on the Upstream, the cash proceeds of the divestment will be utilized towards debt reduction to shore up our balance sheet in these challenging times. We are encouraged by our recent success in the Upstream which has seen an 11 fold increase in production and 82% increase in 2P reserves as well as a substantial reduction in our acquisition debt. Our strategic focus is to increase operational efficiencies, whilst creating the necessary platform to be the partner of choice to the IOC’s as they continue their divestment programmes”.
Operational Update
Oando Energy Resources (OER) completed its 2014 year-end summary of reserves where 2P net reserves increased by 82% from 230.6 mmboe to 420.3 mmboe, largely due to the recognition of Reserves of all producible oil and gas volumes associated with the operator provided work program, up to the economic limit of the producing fields.
OER’s total production was 10 million barrels of oil equivalent (mmboe) in the 6 months, H1 2015 period compared with 0.8 mmboe in the same period of 2014. This increase is as a result of the 43,600boepd additional production from OMLs 60 – 63 which was acquired in H2, 2014; a 406 bbls/day production increase from the newly producing Qua-Ibo field; a 68% increase of production from the Ebendo field from 940 bbls/day to 1,580 bbls/day, largely due to the uncapping of the evacuation capacity as provided by the alternate 45,000 bbl/day, 52 Km Umugini pipeline; as well as an 8% reduction in the crude oil, lost through theft and pipeline vandalization.
Oando Energy Services (OES) achieved five and three years of continuous operations with a Zero Lost Time Incident (LTI) on two of its four rigs, “OES Teamwork” and “OES Passion” respectively. Further demonstrating our commitment to world class operating standards, with the proactive use of our EHSSQ and operational processes. OES Passion resumed its 24 month drilling contract with an IOC.
Oando Gas & Power (OGP) completed the first segment of the Greater Lagos Phase 4 pipeline project which runs from Ijora to Bonny Camp in Lagos state, thereby extending our natural gas distribution network to 135 Km. Segment 1 is complete and ready to supply gas to the customers already connected to the network
Oando Downstream executed an agreement to divest 60% to Helios/Vitol JV for a total consideration of $461 Million. We remain committed to expanding our footprint globally and will utilise our partnership with Vitol accordingly.
Ends.
