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 twelve month period ended 31 December, 2012, with the following highlights:
Financial Highlights:
- Turnover grew by 18%, N675.5 billion as compared to N573.2 billion (2011)
- Gross Profit increased by 18%, N77.4 billion as compared to N65.5 billion (2011)
- Profit-Before-Tax increased by 35%, N17.5 billion compared to N13.0 billion (2011)
- Profit-After-Tax rose by 526%, N10.9 billion compared to N1.8 billion (2011)*
- Proposed dividend of 75 Kobo per share, totaling approximately N5.1 billion
Operational Highlights:
- Oando Energy Resources (OER), was listed on the TSX in Canada;
- Oando Plc maintains a 94.6% stake in OER;
- The Group has granted advances to OER totaling $380 million, of which $360 million is convertible to equity in OER upon the successful completion of the acquisition of ConocoPhilips Nigeria.
- OER paid a $435 million (25%) deposit to ConocoPhillips towards the acquisition of its entire Nigerian business for consideration in the sum $1.79 Billion, less customary adjustments;
- Production and reserves grew as a result of acquisitions and successful drilling campaigns in OML 125, the Ebendo Field OML56 and the newly acquired 40% interest in the Qua-Iboe field OML13;
- OES maintained a successful drilling programme for the International Oil Companies (IOCs) and also made significant advancements towards the full refurbishment of the fourth swamp rig;
- OGP also experienced growth; commencing operations in the Eastern Nigeria pipeline franchise; construction on its maiden Compressed Natural Gas project; operations of the Central Horizon Gas pipeline in Port Harcourt and the Alausa IPP continued as planned;
- OGP recorded uninterrupted power generation at its Independent Power Plant (IPP), Akute Power Limited, dedicated to the Lagos State Water Corporation;
- The downstream division stabilized its operations post the FGN’s deregulation exercise and re-established its leadership position in product importation and distribution.
- Oando Plc commenced the process of a N54.6 billion Rights Issue exercise;
*IFRS restated
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said:
“We are pleased to report our twelve months performance for 2012, in which we have taken positive steps in the implementation of our strategic focus to build our diversified higher margin business segment.
In the Upstream division we listed OER on the Toronto Stock Exchange (TSX) in Canada; increased our production capacity through successful drilling campaigns on OML 125, the Ebendo Field (OML 56) and the Qua Iboe Field (OML13); we also paid a 25% deposit of $435 Million for the acquisition of ConocoPhilips Nigerian business, which will add 43kboe to our daily production and substantially increase our 2P reserves and best estimate contingent resources to 235mmboe and 237mmboe respectively. OES completed a number of successful drilling campaigns on our various drilling rigs, whilst our 4th rig, is currently undergoing refurbishment and expected to be deployed in the 2nd half of 2013.
The Midstream division witnessed a 35% growth in gas supply, mainly from the newly commissioned 128Km EHGC pipeline in the South East of the country. We look forward to the completion of our other midstream projects; our 2nd power plant the Alausa IPP, our maiden Compressed Natural Gas project as well as our 3rd pipeline franchise, the Central Horizon Gas pipeline in Port Harcourt.
In the Downstream division we remain committed to increasing our efficiencies and are in the final stages of construction of a midstream jetty in Lagos that will berth larger vessels and substantially reduce demurrage and lightering costs. However, we remain concerned that throughput volumes will reduce, except the prompt re-imbursement of subsidy claims is re-instated or interest on delayed claims is promptly settled.
As we unfold the next chapter of our compelling growth story, we stand committed towards delivering on our strategy, with the generation of free cash flows being our main priority.”
Ends.
