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 audited results for the three months period ended March 31, 2017.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
“I am pleased to announce that the Company has maintained the momentum of 2017 by posting a profit of N4.2 billion in our First Quarter ended March 31, 2018 unaudited financials. Our Q1 performance was characterised by a stable operating environment, continued incline in crude oil prices, and the highest level of compliance by member countries’ of the OPEC Accord. Considering the background of current industry trends, the Company is committed to maximizing throughput rates to ensure a positive financial performance in the ensuing quarters of 2018.”
Financial Highlights:
- Turnover increased by 9%, N150.5 billion compared to N138.4 billion (Q1 2017)
- Gross Profit increased by 108%, N27.9 billion compared to N13.4 billion (Q1 2017)
- Profit-After-Tax increased by 145%, N4.2 billion compared to N1.7 billion (Q1 2017)
Operational Highlights:
Upstream:
- Oando Energy Resources (OER) recorded a 4% increase in total production to 3.6MMboe (average 39,556 boe/day) from 3.4MMboe (average 38,125 boe/day) in comparative period of Q1 2017
- OER realised a net profit of N8.6 billion ($23.8 million) compared with N5.8 billion ($16.2 million) profit in the comparative period of Q1 2017
OER recorded an average production of 39,556 boe/day in the 3 months ended March 31, 2018 compared to 38,125 boe/day in the comparative period of 2017. Improved production was primarily due to increased production at Ebendo as a result of the Trans Forcados pipeline, which was down in the same period in 2017 as well as increased production at OMLs 60 to 63 as a result of reduced sabotage and crude theft activities, which necessitated a shut-in on production lines in the comparative period of 2017.
OER recorded a net profit of N8.6 billion ($23.8 million) compared with N5.8 billion ($16.2 million) in the comparative period of Q1 2017. 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 (Q1 2018: Oil -$65.49/bbl, Gas – $1.54/mcf, NGL – $13.59/boe, compared to Q1 2017: Oil – $51.74/bbl, Gas – $1.39/mcf, NGL-$9.62/boe).
Midstream:
- Achieved drawdown on a N1.5 billion facility
- Axxela our midstream affiliate delivered one (1) customer connect in Q1 2018
Axxela achieved a drawdown on its N1.5 billion facility to refinance the Central Horizon Expansion Pipeline’s term loan. The Company continues to grow its customer base and is now delivering natural gas to over 175 industrial and commercial customers via its gas network infrastructure.
Downstream:
- OTD recorded average trading volumes of 32,000 bpd in the three months ended March 31, 2018 compared to 70,000 bpd in the comparative period of 2017
- A total of 2.9m barrels of Crude Oil and 163,000 MT of petroleum products were traded in the first quarter of the year
- Trading Revenues remained relatively stable at just over N108.1 billion ($300 million), driven by a strong performance in West African flows
OTD continues to solidify its relationships via access to over N252.1 billion ($700 million) of immediately available Structured Trade Finance facilities, integral, as the Company continues to position itself to take advantage of opportunities for further growth in 2018.
The first quarter of 2018 saw global crude prices average $66 per barrel, $3 more than the projected average of $63 for 2018 and 2019. The extension of the OPEC oil production cut agreement through 2018 further buoyed crude oil prices and are reflective in the balance sheet of various economies. In Nigeria, macroeconomic indicators recorded progress in the first quarter of the year, as oil production increased, inflation rate moderated, the exchange rate and operating environment remained stable. The outlook for 2018 remains promising as Nigeria’s Gross Domestic Product (GDP) is set to grow by 2%, propelled by increased oil production, improved government spending and investments set to benefit from an increasingly attractive investment climate.
Ends.
