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Oao - Oando Plc - Unaudited Results For The Half Year Ended 30 June 2008

Release Date: 29/07/2008 11:00:08      Code(s): OAO
OAO - Oando Plc - Unaudited results for the half year ended 30 June 2008        
Oando Plc                                                                       
(Incorporated in Nigeria and registered as an external company in South Africa) 
Registration number: RC 6474                                                    
(External company registration number: 2005/038824/10)                          
Share Code on the JSE Limited: OAO                                              
Share Code on the Nigerian Stock Exchange: UNTP                                 
ISIN: NG00000UNTP0                                                              
("Oando" or "the Company")                                                      
Unaudited results for the half year ended 30 June 2008                          
Highlights:                                                                     
* Turnover of $1.05bn                                                           
* Gross profit of $87.30m                                                       
* Operating profit of $45.36m                                                   
* Profit after tax of $31.13m                                                   
* Attributable profit after tax of $31.10m                                      
* Earnings per share of 3.44c                                                   
* Interim dividend of N3.00 proposed                                            
* Improved margin recovery on petroleum products                                
* Efficient supply chain management                                             
* Stable supply of petroleum products                                           
* Marked improved in contribution from non marketing business                   
* Efficient working capital re-alignment and proactive cash management          
* Strong organic growth; and                                                    
* Improved performance over previous year on all major indicators               
Review of results                                                               
Oando, which has a primary listing on the Nigerian Stock Exchange and a         
secondary listing on the JSE Limited ("JSE"), reports profit after tax ("PAT")  
for the half year ended 30 June 2008 of $31.13m.                                
Income statement analysis                                                       
Our half year position is a reflection of the consistent improvement in         
operational efficiency that has since become our hallmark. The half year        
results show a marked improvement in performance compared to our first quarter  
and previous year`s results. The results are driven by superior return anchored 
on operational excellence especially from our supply and trading; and           
downstream marketing businesses.                                                
Turnover for the first half of the year increased by 25% from $884.09m to       
$1.05bn in 2008.The increase in turnover can be attributed to efficient         
management of our supply chain logistics; stable supply of petroleum products;  
on-time delivery across all our outlets and stable macro economic factors. Our  
supply and trading and marketing divisions accounted for the bulk of this huge  
increase in the Group turnover.                                                 
The positive growth in turnover has the same impact on gross profit as the      
Group recorded a 66% increase over prior year profit of $52.72m. In addition to 
high volume of trade, the company recorded marked improvement in its margin     
recovery effort thus boosting the margin level.                                 
Growth in our energy service division, other business activity driven and       
general increase in the cost of doing business account for the increase in      
operating and administrative expense by 63% over prior year. Our non-fuel       
revenue showed an increase of 48% from previous year. The 2008 performance      
reflects success recorded at growing our non- fuel income line as the prior     
year level was boosted by income accruing from the disposal of a non core       
asset.                                                                          
Efficient management of our cash and proactive working capital realignment has  
ensured that interest expense on borrowed fund increased moderately by 23% over 
corresponding period of 2007 despite higher borrowings. This is a benefit from  
the efforts undertaken last year to improve trade debt and secure more price    
competitive facilities under better deal/arrangement from our financial         
institution partners. With the increase in sales and improved margin recovery   
coupled with growth in non-fuel revenue, consolidated PAT increased by 69% from 
$18.38m to $31.13m in the half year of 2008. PAT attributable to ordinary       
shareholders rose by 110% to $31.10m from $14.81m reflecting the promise made   
to all stakeholders on the benefit that will accrue following the share swap    
exercise. Finally, the net effect of all the foregoing was a 110% rise in       
adjusted earnings per share from 1.64c to 3.44c.                                
Balance sheet analysis                                                          
Oando`s total assets rose by 167% to $680m compared to $1,815bn as at June 2007 
while total liabilities grew by the same margin all driven mainly by the        
increased level of business activities. The growth in assets is due to          
strategic investment made by the company in the last quarter of 2007 as total   
asset increased by 30% when compared to the audited position of December 2007.  
The Group during the period under review continued its expansion drive, which   
involves moving away from the lower margin segments and into higher value areas 
of the energy value chain like Upstream Exploration & Production and high       
margin mud-engineering services and rigs drilling system, a strategy which we   
believe will yield significant returns in future.                               
Strategic acquisitions in the upstream sector carried out in the last 12 months 
culminated in a significant increase in fixed asset balances especially in the  
energy service division while the need to tap into emerging opportunities       
within the energy chain brought about increased short-term borrowing to support 
business growth and market development.                                         
Prospects:                                                                      
Investments in gas and power distribution and acquisition of strategic upstream 
assets remain the corner stone our future profitability and viability. We       
intend leveraging on the immense value imbedded in our marketing division to    
unlock the potential that these two sectors hold for the immediate and future   
benefit of all stakeholders within the Group. We shall be exploring in          
the immediate future, this opportunity to create a future of growth and robust  
profitability anchored on a diversified platform.                               
We expect our marketing division to sustain its current leadership role in      
supply management and on-time delivery of petroleum products to all our         
outlets. Non-fuel revenue is also expected to improve significantly as new      
products introduce during the early part of the year gains market acceptance.   
The company will also continue its cost containment effort while the proactive  
cash management procedure put in place will be sustained through the year.      
Our Supply and Trading business is better poised than before to further improve 
and solidify its presence as products supplier of choice in Nigeria and         
neighbouring countries in West Africa. The company is expected to leverage on   
the market acceptability and niche that it has created for itself to deliver    
strong performance in the coming months, The strategic alliances formed with    
the Group`s upstream operations amongst other partners will also aid the        
trading of crude production while the emergence of other identified business    
opportunities will contribute to ensure that its goals are met.                 
Our energy service company has been re-engineered to offer superior and world   
class mud- engineering, drilling system and drilling rig (swamp and land)       
services to companies operating in the upstream sector of the energy chain. The 
recently acquired rigs have been refurbished and are scheduled to commence      
operation before the end of this year while our activities in other high margin 
services are also expected to boost profitability within this division.         
Lastly, major milestones have been achieved within our portfolio of upstream    
assets paving the way for the arrival of our "first oil".                       
Consolidated Balance Sheet                                                      
As at 30 June 2008                                                              
                                                           2008       2007      
ASSETS                                                      $`mn       $`mn     
Non-current assets                                                              
Property Plant & Equipment                                284.54     102.28     
Intangible Assets                                         251.81     113.37     
Long Term Investments                                       2.83       0.44     
Long Term Receivables                                     117.79      22.36     
                                                         656.97     238.44      
Current ASSETS                                                                  
Inventories                                               287.58     114.66     
Trade & Other Receivables                                 345.31     233.88     
Cash & Cash Equivalents                                   525.15      92.98     
                                                       1,158.04     441.52      
Total assets                                            1,815.01     679.95     
EQUITY                                                                          
Capital & Reserves attributable to equity                                       
holders                                                                         
Share Capital                                               3,83       2.16     
Share Premium                                             232.91     120.47     
Revaluation Reserve                                        85.20      18.48     
Exchange Difference                                                    7.75     
Retained Earnings                                          45.69      23.84     
367.63     172.70      
Minority Interest                                           1.61      18.33     
Total equity                                              369.24     191.03     
LIABILITIES                                                                     
Non-Current Liabilities                                   398.03      15.93     
Deferred income tax liabilities                             5.73       5.32     
Retired benefit obligation                                  0.29       1.15     
                                                         404.05      22.40      
Current Liabilities                                                             
Trade & Other Payables                                    275.42     218.87     
Current Income Tax Liabilities                             18.78       9.82     
Borrowings                                                747.53     237.83     
1,041.73     466.53      
Total Liabilities                                       1,445.78     488.92     
Total Equity & Liabilities                              1,815.01     679.95     
Consolidated Income Statement                                                   
For the half year ended 30 June 2008                                            
                                                         2008         2007      
                                                         $`mn         $`mn      
Sales                                                 1,054.37       844.09     
Cost of Sales                                         (967.06)     (791.38)     
Gross Profit                                             87.30        52.72     
Selling & Marketing Costs                              (13.70)       (8.68)     
Administrative Expenses                                (25.45)      (15.42)     
Other Operating Income                                    3.02         6.39     
Operating Profit                                         45.36        23.34     
Shares of Profit of Associates                               -            -     
Finance Costs                                           (5.28)       (4.28)     
Profit Before Taxation                                   40.08        23.42     
Income Tax Expense                                      (8.95)       (5.04)     
Profit After Expense                                     31.13        18.38     
Attributable to:                                                                
Minority Interest                                         0.03         3.57     
Equity Holders of the Coy                                31.10        14.81     
                                                        31.10        18.38      
Segment reporting showing inter-segment revenue and profit and loss             
Below is the Group performance on divisional basis for the half year ended      
30June 2008:                                                                    
    The Group`s segment results are as follows:                                 
                                                       30-Jun-08                
Refining $     Gas &                
$mn                                           marketing     power     Group     
Total gross segment                                                             
sales                                             1,513        50     1,563     
Inter-segment sales                                -509                -509     
Sales                                             1,004        50     1,054     
Operating Profit                                     45         0        45     
Finance cost                                         -4        -1        -5     
Exceptional item                                      -         -         -     
Profit before income                                                            
tax                                                                      40     
Income tax expense                                                       -9     
Profit for the year                                                      31     
                                                       30-Jun-07                
                                            Refining &     Gas &                
$mn                                           marketing     power     Group     
Total gross segment                                                             
sales                                               941        49       991     
Inter-segment sales                                -147         -      -147     
Sales                                               795        49       844     
Operating Profit                                     20         3        23     
Finance cost                                         -4        -0        -4     
Exceptional item                                      4         -         4     
Profit before income                                                            
tax                                                                      23     
Income tax expense                                                       -5     
Profit for the year                                                      18     
Consolidated Statement of changes in Shareholder`s Equity Attributable to       
equity holders of the Company For the half year ended 30 June 2008.             
                         Share       Share     Revaluation      Cumulative      
                       Capital     Premium         reserve     translation      
                                                                adjustment      
US$m        US$m            US$m            US$m      
Balance as at              2.89      232.91           56.95           28.25     
31st December                                                                   
2007                                                                            
Retained profit                                                                 
for the period                                                                  
Bonus issue of             0.94                                                 
shares                                                                          
Dividend paid                                                                   
Balance as at                                                                   
31st June 2008             3.83      232.91           56.95           28.25     
                                          Retained     Minority      Total      
earnings     interest     equity      
                                              US$m         US$m       US$m      
Balance as at                                 53.74         1.61     376.35     
31st December                                                                   
2007                                                                            
Retained profit                               31.10         0.03      31.13     
for the period                                                                  
Bonus issue of                                -0.94                       0     
shares                                                                          
Dividend paid                                -38.24                  -38.24     
Balance as at                                 45.66         1.64     369.24     
31st June 2008                                                                  
Share Capital            Share     Revaluation      Cumulative     Retained     
                      Premium         reserve     translation     earnings      
                                                   adjustment                   
US$m                      US$m            US$m            US$m         US$m     
2.16          120.74           11.37         7.11      
Balance as at                                                                   
31st December                                                                   
2006                                                                            
Revaluation                                              66.31                  
surplus on                                                                      
property plant                                                                  
and                                                                             
equipment                                                                       
Deferred tax                                            -20.55                  
effect of                                                                       
residual value                                                                  
restatement                                                                     
Issue of shares           0.73          112.17                                  
Fair value                                              -0.173                  
gain/loss on                                                                    
available for                                                                   
sale                                                                            
investments                                                                     
Currency                                                              21.14     
Translation                                                                     
adjustment                                                                      
Profit for the                                                                  
year                                                                            
Final Dividend                                                                  
for 2006                                                                        
Balance as at                                                                   
31st December 2007        2.89          232.91           56.95        28.25     
Share Capital                               Minority      Total       Share     
                                           interest     equity     Capital      
US$m                                            US$m       US$m        US$m     
                                              28.03      14.65      184.05      
Balance as at                                                                   
31st December                                                                   
2006                                                                            
Revaluation                                                           66.31     
surplus on                                                                      
property plant                                                                  
and                                                                             
equipment                                                                       
Deffered tax                                                         -20.55     
effect of                                                                       
residual value                                                                  
restatement                                                                     
Issue of shares                                          -13.23       99.67     
Fair value                                                           -0.173     
gain/loss on                                                                    
available for                                                                   
sale                                                                            
investments                                                                     
Currency                                                              21.14     
Translation                                                                     
adjustment                                                                      
Profit for the                                 43.94       0.19       44.13     
year                                                                            
Final Dividend                                -18.23                 -18.23     
for 2006                                                                        
Balance as at                                                                   
31st December 2007                             53.74       1.61      376.35     
Notes to reviewed results                                                       
1. General information                                                          
Oando Plc (formerly Unipetrol Nigeria Plc) was registered by a special          
resolution as a result of the acquisition of the shareholding of Esso Africa    
Incorporated (principal shareholder of Esso Standard Nigeria Limited) by the    
Federal Government of Nigeria. The Company was partially privatised in 1991. It 
was however fully privatised in the year 2000 consequent upon the sale of       
Federal Government`s 40% shareholding in the Company. 30% was sold to core      
investors (Ocean and Oil Investments Limited) and the remaining 10% to the      
Nigerian public. In December 2002, the Company merged with Agip Nigeria Plc     
following its acquisition of 60% Agip Petroli`s stake of Agip Nigeria Plc in    
August of the same year. The Company formally changed its name from Unipetrol   
Nigeria Plc to Oando Plc in December 2003.                                      
Oando has its primary listing on the Nigerian Stock Exchange.                   
The Group has marketing and distribution outlets in Nigeria, Ghana and Togo and 
other smaller markets along the West African coast.                             
2. Summary of significant accounting policies                                   
The principal accounting policies applied in the preparation of these           
consolidated financial statements are set out below. These policies have been   
consistently applied to all the years presented, unless otherwise stated.       
2.1 Basis of preparation                                                        
The consolidated financial statements of Oando have been prepared in accordance 
with International Financial Reporting Standards (IFRS). The consolidated       
financial statements have been prepared under the historical cost convention,   
as modified by the revaluation of land and buildings, and financial assets and  
financial liabilities at fair value through profit or loss.                     
The preparation of financial statements in accordance with IFRS requires the    
use of certain critical accounting estimates. It also requires management to    
exercise judgement in the process of applying the Group`s accounting policies.  
Early adoption of standards                                                     
In 2004, the Group early adopted the IFRS below, which are relevant to its      
operations. These have been consistently applied in this unaudited financial    
report for the first half of 2008.                                              
IAS 2 (revised 2003) Inventories                                                
IAS 8 (revised 2003) Accounting Policies, Changes in Accounting Estimates and   
                    Errors                                                      
IAS 10 (revised 2003) Events after the Balance Sheet Date                       
IAS 16 (revised 2003) Property, Plant and Equipment                             
IAS 17 (revised 2003) Leases                                                    
IAS 21 (revised 2003) The Effects of Changes in Foreign Exchange Rates          
IAS 24 (revised 2003) Related Party Disclosures                                 
IAS 27 (revised 2003) Consolidated and Separate Financial Statements            
IAS 28 (revised 2003) Investments in Associates                                 
IAS 32 (revised 2003) Financial Instruments: Disclosure and Presentation        
IAS 33 (revised 2003) Earnings per share                                        
IAS 36 (revised 2004) Impairment of Assets                                      
IAS 38 (revised 2004) Intangible Assets                                         
IAS 39 (revised 2003) Financial instruments: Recognition and measurement        
IFRS 2 (issued 2004) Share-based payments                                       
IFRS 3 (issued 2004) Business Combinations                                      
IFRS 5 (issued 2004) Non-current Assets Held for Sale and Discontinued          
                    IFRIC 10 (Issued 2006) Interim Financial Reporting and      
                    Impairment.                                                 
The early adoption of IAS 10 has resulted in a change in the accounting policy  
for dividends. Proposed dividends, which were previously recognised in the year 
prior to the declaration, have been adjusted in accordance with IAS 10 and 37   
respectively.                                                                   
The application IAS 16 has affected the accounting for fair value reserve       
relating to revalued land and buildings upon disposal.                          
Under previous GAAP, the revaluation surplus included in equity in respect of   
an item of property, plant and equipment were transferred to the income, when   
the asset is disposed of, to determine profit on disposal.                      
Adjustments have been passed to transfer the related amounts directly to        
retained earnings in accordance with IAS 16. Also, early adoption of IAS 16     
(revised 2004) has necessitated the disclosure of prior year comparatives for   
all movements in property plant and equipment.                                  
IAS 21 (revised 2003) has affected the translation of foreign entities` income  
statements, on which closing rates were previously applied but now amended and  
translated at average rates. The functional currency of each of the             
consolidated entities has also been re-evaluated based on the guidance to the   
revised standard. All the Group entities have the same functional currency as   
their presentation currency. These financial statements have been presented in  
a currency other than the Company`s functional currency, being US Dollars, to   
meet the filing requirements of the JSE.                                        
IAS 24 (revised 2003) has affected the identification of related parties and    
some other related-party disclosures.                                           
IAS 27 (revised 2004) has affected the consolidation of subsidiaries. Certain   
subsidiaries, which were not included in the consolidation under previous GAAP  
have now been consolidated.                                                     
The early adoption of IAS 33 has resulted in a change in the computation of     
earnings per share. Earnings per share, which were previously computed on the   
basis of the number of shares in issue at the end of the reporting period, have 
been adjusted on the basis of the weighted average number of shares in          
accordance with IAS 33.                                                         
The early adoption of IAS 39 has resulted in a change in accounting for         
financial assets and liabilities.                                               
Although the Group did not have any share-based payments as at the balance      
sheet date, upon adoption of a scheme, which is currently being considered by   
the Group, all share based payments will be accounted for under IFRS 2.         
The early adoption of IFRS 5 has resulted in a change in the accounting for     
non-current assets held for sale and discontinued operations as qualifying      
assets have been reclassified accordingly.                                      
The early adoption of IFRS 3, IAS 36 (revised 2004) and IAS 38 (revised 2004)   
resulted in a change in the accounting policy for goodwill. Until 31 December   
2002, goodwill was:                                                             
- Amortised on a straight line basis over a period ranging from 5 to 20 years;  
 and                                                                            
- Assessed for an indication of impairment at each balance sheet date.          
In accordance with the provisions of IFRS 3:                                    
- The Group ceased amortisation of goodwill from 1 January 2003;                
- Accumulated amortisation as at 31 December 2002 has been eliminated with a    
corresponding decrease in the                                                  
cost of goodwill;                                                               
- Goodwill was tested for impairment at 1 January 2003, the transition date.    
Also, from the year ended 31 December 2003 onwards, goodwill is tested annually 
for impairment, as well as when there are indications of impairment. The Group  
has also reassessed the useful lives of its intangible assets in accordance     
with the provisions of IAS 38. No adjustment resulted from this reassessment.   
All changes in the accounting policies have been made in accordance with the    
transition provisions in the respective standards.                              
The early adoption of IAS 1, 2, 8, 17 28, and 32 (all revised 2003) did not     
result in substantial changes to the Group`s accounting policies.               
In summary:                                                                     
- IAS 1, 2, 28 and 32 had no material effect on the Group`s policies.           
- IAS 8 (revised 2004) has resulted in the disclosure of the impact of new      
 standards                                                                      
2.2 Consolidation                                                               
(a) Subsidiaries                                                                
Subsidiaries include all entities (including special purpose entities) over     
which the Group has the power to govern the financial and operating policies    
generally accompanying a shareholding of more than one half of the voting       
rights. The existence and effect of potential voting rights that are currently  
exercisable or convertible are considered when assessing whether the Group      
controls another entity. Subsidiaries are fully consolidated from the date on   
which control is transferred to the Group. They are deconsolidated from the     
date that control ceases.                                                       
The purchase method of accounting is used to account for the acquisition of     
subsidiaries by the Group. The cost of the acquisition is measured as the fair  
value of the assets given, equity instruments issued and liabilities incurred   
or assumed and the date of plus costs directly attributable to the acquisition. 
Identifiable assets acquired and liabilities and contingent liabilities assumed 
in a business combination are measured initially at their fair values at the    
acquisition date irrespective of the extent of any minority interest. The       
excess of the cost of acquisition over the fair value of the Group`s share of   
the identifiable net assets acquired is recorded as goodwill. If the cost of    
acquisition is less than the fair value of the net assets of the subsidiary     
acquired, the difference is recognised directly in the income statement. All    
balances and unrealised surpluses and deficits on transactions between group    
companies have been eliminated. Where necessary, accounting policies for        
subsidiaries have been changed to be consistent with the policies adopted by    
the Company. Separate disclosure (in equity) is made of Minority Interests.     
(b) Associates                                                                  
Associates are all entities over which the Group has significant influence but  
not control, generally accompanying a shareholding of between 20% and 50% of    
the voting rights. Investments in associates are accounted for by the equity    
method of accounting and are initially recognised at cost. The Group`s          
investment in associates includes goodwill (net of any accumulated impairment   
loss) identified on acquisition. The Group`s share of its associates`           
post-acquisition profits or losses is recognised in the income statement, and   
its share of post acquisition movements in reserves is recognised in reserves.  
The cumulative post-acquisition movements are adjusted against the carrying     
amount of the investment.                                                       
When the Group`s share of losses in an associate equals or exceeds its interest 
in the associate, including any other unsecured receivables, the Group does not 
recognise further losses, unless it has incurred obligations or made payments   
on behalf of the associate. Unrealised gains on transactions between the Group  
and its associates are eliminated to the extent of the Group`s interest in the  
associates. Unrealised losses are also eliminated unless the transaction        
provides evidence of an impairment of the asset transferred. The accounting     
policies of the associates are consistent with the policies adopted by the      
Group.                                                                          
Goodwill included in the carrying amount of an investment is neither amortised  
nor tested for impairment separately by applying the requirements for           
impairment testing goodwill in IAS 36, Impairment of Assets.                    
Instead, the entire carrying amount of the investment is tested under IAS 36    
for impairment.                                                                 
All subsidiaries and associates have uniform calendar year ends.                
2.3 Segmental reporting                                                         
A business segment is a group of assets and operations engaged in providing     
products or services that are subject to risks and returns that are different   
from those of other business segments. A geographical segment is engaged in     
providing products or services within a particular economic environment that    
are subject to risks and return that are different from those of segments       
operating in other economic environments.                                       
2.4 Foreign currency translation                                                
(a) Functional and presentation currency                                        
Items included in the financial statements of each of the Group`s entities are  
measured using the currency of the primary economic environment in which the    
entity operates (`the functional currency`). The functional currency of the     
Group is the Naira. The consolidated financial statements are presented in US   
dollars, which is the company`s presentation currency for the purpose of filing 
outside Nigeria.                                                                
(b) Transactions and balances                                                   
Foreign currency transactions are translated into the functional currency using 
the exchange rates prevailing at the dates of the transactions. Foreign         
exchange gains and losses resulting from the settlement of such transactions    
and from the translation at year-end exchange rates of monetary assets and      
liabilities denominated in foreign currencies are recognised in the income      
statement, except when deferred in equity as qualifying cash flow hedges and    
qualifying net investment hedges.                                               
c) Group Companies                                                              
The results and financial position of all the group entities (none of which has 
the currency of a hyperinflationary economy) that have a functional currency    
different from the presentation currency are translated into the presentation   
currency as follows:                                                            
1. Assets and liabilities for each balance sheet presented are translated at    
  the closing rate at the date of that balance sheet;                           
2. Income and expenses for each income statement are translated at average      
  exchange rates; and all resulting exchange differences are recognised as a    
  separate component of equity.                                                 
3. On consolidation, exchange differences arising from the translation of the   
net investment in foreign entities are taken to shareholders` equity. Upon    
  disposal of part or all of the investment, such exchange differences are      
  recognised in the income statement as part of the gain or loss on sale.       
3. Earnings Per Share                                                           
Basic Earnings Per Share (EPS) is calculated by dividing the Profit             
Attributable to the equity holders of the Company by the weighted average       
number of shares in issue during the period.                                    
                                                           2008       2007      
Profit attributable to equity holders of the Company ($`m) 31.10      14.81     
Average number of shares in issue (millions)              904.88     572.30     
Basic Earnings Per Share (cents)                            3.44       2.59     
Diluted                                                                         
Profit attributable to equity holders of the Company       31.10      14.81     
Weighted average number of shares in issue (millions)     904.88     572.30     
Adjustment for Bonus issues                                                     
Weighted average number of shares for diluted Earnings                          
Per Share (millions)                                      904.88     572.30     
Diluted Earning Per Shares (cents)                          3.44       2.59     
Headline Earnings Per Share                                 3.44       2.59     
Profit Attributable to equity holders of the Company       31.10      14.81     
Adjusted for:                                                  0          0     
Profit on sale of buildings associated with discontinued                        
operations                                                                      
Profit/(Loss) on sale of other assets                          0          0     
Loss on sales of investment in affiliate companies             0          0     
Tax thereon                                                    0          0     
Headline Earnings Per Share attributable to earnings                            
basis (cents)                                               3.44       2.59     
Headline Earnings Per Share attributable to diluted                             
earnings basis (cents)                                      3.44       2.59     
Net Assets Per Share (cents)                               40.81      33.34     
Tangible Assets Per Share (cents)                         172.75     118.81     
4. INTERIM DIVIDEND                                                             
The Board has declared an interim dividend of Naira 3.00 for each ordinary share
of 50 kobo each, payable on 30th September 2008 to those shareholders, whose    
names appear in the Company`s Register of Members (Nigerian & South African) at 
the close of business on Friday, 15th August, 2008. A dividend announcement will
be released shortly on SENS.                                                    
5. INDEPENDENT AUDIT BY THE AUDITORS                                            
This condensed consolidated result has not been audited by our auditors         
PricewaterhouseCoopers being the second quarter of our financial year.          
6. POST BALANCE SHEET EVENTS                                                    
The company has entered into an agreement with Nigerian AGIP Exploration Limited
("AGIP") to acquire a 15.0% interest in the Production Sharing Contracts        
("PSCs") in respect of offshore Nigeria Oil Mining Licence ("OML") 125 and OML  
134. This was agreed with AGIP subsequent to AGIP`s exercise of its pre-emption 
rights over Shell Nigeria Exploration and Production Company Limited`s entire   
40.81% interest in the PSCs in respect of OML 125 and OML 134. Barring this,    
there are no significant post balance sheet events that in the opinion of the   
Director will have material impact on the accounts herein presented.            
For and on behalf of the Board                                                  
Mr J Adewale Tinubu                                                             
Group Chief Executive                                                           
July 25 2008                                                                    
Directorate:                                                                    
1.             General M. Magoro (Rtd.)   -         Chairman                    
2.             Mr. J. A. Tinubu           -         Group CEO                   
3.             Mr. O. Boyo                -         Deputy Group CEO            
4.             Mr. B. Osunsanya           -         Group Executive Director    
5.             Mr. A. Akinrele SAN        -         Director                    
6.             Prince F. N. Atako JP.     -         Director                    
7.             Mr. Navaid Burney          -         Director                    
8.             HRM. Oba. A. Gbadebo       -         Director                    
9.             Mr. O. Ibru                -         Director                    
10.            Alhaji H. Mahmud           -         Director                    
11.            Mr Onajite Okoloko         -         Director                    
12.            Mr. I. Osakwe              -         Director                    
Company Secretary: Mrs. Oredeji Delano                                          
Registered office: 2, Ajose Adeogun Street, Victoria Island, Lagos, Nigeria     
Auditors: PriceWaterhouseCoopers, Plot 252E Muri Okunola Street,                
         Victoria Island, Lagos                                                 
         E-mail: info@oandoplc.com                                              
Registered office in South Africa: 1st Floor, 32 Fricker Road,                  
                                  Illovo Boulevard, Sandton, 2196,              
                                  South Africa                                  
Office of the South African registrars: Computershare Investor Services         
(Proprietary) Limited                     
                                      (Registration number: 2004/003647/07)     
70 Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown, 2107        
Sponsor: Deutsche Securities (SA) (Proprietary) Limited                         
Date: 29/07/2008 11:00:02 Supplied by www.sharenet.co.za                     
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