5 November, 2012
PRESS STATEMENT
Oando PLC Announces YTD September 2012 Results, Posts N9.3bn Profit-After-Tax
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 nine months period ended 30 September, 2012, with the following highlights:
Financial Highlights:
- Turnover grew by 24%, N487.8 billion compared to N392.3 billion (2011)
- Gross Profit increased by 3%, N50.7 billion compared to N49.1 billion (2011)
- Profit-After-Tax rose by 6%, N9.3 billion compared to N8.8 billion (2011)
Operational Highlights:
- Oando Energy Resources (OER) listed on the Toronto Stock Exchange (TSX);
- OER completed and tied in the EB-4 well at the Ebendo Marginal Field and has the capacity to increase production by 2,000 bopd, 855 bopd net to OER;
- Oando’s fourth swamp rig refurbishment programme is well on track and is expected to be delivered by 2nd Quarter 2013 to commence drilling operations with an IOC;
- Oando Gas and Power continued construction of its maiden Compressed Natural Gas project and also commenced construction of Alausa IPP;
- The downstream sector increased its leadership market share in product import and distribution.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “We are pleased to report our performance over the past nine months of this year 2012. This period witnessed increased revenues and profitability due to our improved operations and recently commissioned investments.
In the Upstream, the listing of OER on the TSX will provide a platform for raising funds to drive our aspiration for E&P growth through acquisitions and asset development. The Ebendo field drilling program has experienced an increase in gross production capacity to 4,000bopd, with the addition of 2,000bopd from the tie-in of the EB-4 well. Completion of the EB-5 drilling program is positively anticipated. We also successfully commenced drilling on the Qua Iboe field, with the first of three wells to be completed in Q4 2012. Our three rigs deployed in the Niger Delta continue to operate at optimum levels of 90% plus efficiency, with the fourth rig expected to commence drilling operations in the New Year. In the Midstream, our Gas and Power business is at advanced stages of completion of the CNG project and we have commenced construction of Alausa IPP, with both projects aiming to reduce the cost of power generation for commercial customers and significantly increase our total power generation capacity respectively, thereby aid in resolving our drive to increase the nation’s dependence on Gas. Notwithstanding the challenges experienced in the Downstream since the inception of the year, we have increased our leadership in both, product importation and distribution, as well as commenced construction of our mid-stream jetty to increase throughput and eliminate lightering and demurrage exposure.
We recently announced our plans to reduce our net debt through a combination of capital raises, divestments and business combinations to strengthen the company in preparation for focused growth in the high margin E&P sector. These plans are underway and are progressing successfully.
We continue to work towards a resilient performance in the fourth quarter of the year, focusing on driving our business into the next chapter and staying committed to our stated objectives for the year and beyond”
Ends.
