Oao - Oando Plc - Audited Financial Statements For The Year Ended 31 December Release Date: 01/04/2011 12:00:02 Code(s): OAO
OAO - Oando Plc - Audited financial statements for the year ended 31 December
(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
("Oando" or "the Company" or "the Group")
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010
Shareholders are advised that the following announcement for the audited
financial statements for the year ended 31 December 2010, which has been
prepared in terms of the Nigerian Accounting Standards and the Companies and
Allied Matters Act, 2004, was released on the Nigerian Stock Exchange today, 1
The audited financial statements prepared in terms of International Financial
Reporting Standards will be announced in due course.
The Directors are pleased to announce the audited financial statements of Oando
PLC for the year ended 31 December 2010. The Group retained the existing
structure of six divisions in line with the nature of its businesses. The
divisions consist of the following: Oando Marketing, Oando Supply and Trading,
Oando Energy Services, Oando Gas and Power, Oando Exploration and Production and
Oando Refinery and Terminals.
In spite of the enormous challenges posed by the operating environment during
the year under review, the Group achieved higher profitability when compared to
the previous year. The results further reaffirm the competitive edge provided by
the diversity in our business model as an integrated energy solutions provider.
Find below the highlights of our results for the year ended 31 December 2010:
Profit and Loss Information
2010 2009 % Variance
N`000 N`000 %
Turnover 378,930,011 336,859,678 12
Gross profit 55,995,893 35,577,172 57
Administrative expenses 24,647,036 18,087,443 36
Interest received 1,465,395 3,570,953 (59)
Other operating income 4,099,296 11,713,165 (65)
Interest payable 5,810,785 11,825,890 (51)
Profit before taxation 23,882,467 13,512,155 77
Taxation 9,507,501 3,415,176 178
Profit after taxation 14,374,966 10,096,979 42
Attributable to equity holders 14,270,518 10,243,168 39
Minority Interests 104,448 (146,189) 171
Basic earnings per 50K share 931 1132 (18)
Adjusted earnings per 50K 931 558 67
No. of shares No. of
No of 50k shares issued and 1,810,169,256 905,084,628 100
Balance Sheet Information
2010 2009 % Variance
N`000 N`000 %
Fixed assets 152,674,743 131,713,072 16
Long-term receivable 25,469,009 18,783,390 36
Inventories 22,450,466 9,693,311 132
Trade debtors and other 79,763,185 96,743,166 (18)
Cash & bank balances 11,696,698 25,760,410 (55)
Trade creditors and accruals 60,361,323 81,511,059 (26)
Short-term borrowings 70,838,420 140,473,551 (50)
Working capital (22,768,859) (87,152,875) (74)
Long-term borrowings 76,348,834 21,247,128 259
Share capital and reserves 95,004,784 53,319,124 78
Oando PLC`s performance during the year ended 31 December, 2010 is mainly
attributable to the following:
Turnover (increased by 12%)
- Commissioning of the 12.15MW Akute Power Plant in March 2010.
- Additional customer connects for our gas and power business.
- Twelve months of operation from our first rig (Integrity) in 2010 compared to
five months of operations of the rig in 2009. Our second rig (Teamwork) also
contributed to turnover after deployment in April 2010.
- Full year production of the Upstream assets (OMLs 56 and 125), and crude oil
- A 10% volume increase in the downstream division.
Gross profit (increased by 57%)
- Significant reduction in payment cycles for products imported on behalf of
Government post the implementation of the Sovereign Debt Note.
- Contribution from the higher margin businesses (Midstream and Upstream).
Administrative expenses (increased by 36%)
- Additional operating expenses attributable to the Akute Power Plant.
- Operational expenses arising from twelve months operation of two rigs when
compared to five months operation of one rig in 2009.
Interest received (decreased by 59%)
- Lower interest rates and lower deposit placements during the year.
Other operating income (decreased by 65%)
- Transaction such as the major business acquisition that occurred in 2009 did
not happen in 2010.
Interest payable (decreased by 51%)
- Reduced debt position due to the success of the Rights Issue exercise, which
raised N21 billion in Q1, 2010.
- Lower interest rates experienced throughout 2010.
- The restructuring of N60 Billion in short-term loans into a Medium Term Notes
Fixed Assets and Long Term Receivables (increased by 16% and 36% respectively)
- Additional capital expenditure on OML 90, OML 56, East Horizon Gas Company`s
128Km natural gas pipeline and the refurbishment of the third rig in preparation
for operational deployment in 2011.
- Revaluation surplus arising from the triennial revaluation of property, plant
Inventories (increased by 132%)
- Receipt of higher inventory of petroleum products by the supply and trading
subsidiary towards the end of Q4, 2010. Comparative period in 2009 witnessed
suspension of imports due to accumulated PSF debts and uncertainties about
Trade debtors and other debtors (decreased by 18%)
- Receipt of outstanding Petroleum Support Fund debts and subsidies from the
Federal Government of Nigeria.
Cash and bank (decreased by 55%)
- Reduction in borrowings and utilization of own cash and bank balances to fund
Trade creditors and accruals (decreased by 26%)
- Improvement in payment to creditors, which was facilitated by receipts from
debtors and cash generated from operations.
Short-term borrowings (decreased by 50%)
- Successful restructuring of short-term debts to long-term borrowings.
Capital and Reserves (increased by 78%)
- Additional capital through rights issue and share premium.
- Impact of current year`s profit and dividend paid to shareholders during the
The rights issue of one for three and subsequent bonus of one for two led to
100% increase in issued shares.
We remain one of the few companies listed with shareholders base in excess of
260,000. We are committed to delivering superior values shareholders`
expectation through yearly sterling performance and good corporate actions. As
of 31 December 2010, the range of shareholdings of the company is as shown
Range No. of Holders % Units Units%
1 - 186,489 71.61 66,766,954 3.69
1,001 - 57,296 22.00 119,401,419 6.60
5,001 - 8,320 3.19 58,576,918 3.23
10,001 - 6,773 2.60 138,569,700 7.65
50,001 - 752 0.29 53,697,940 2.97
100,001 - 589 0.23 115,070,925 6.36
500,001 - 94 0.04 67,999,665 3.76
1,000,001 91 0.03 177,270,083 9.79
5,000,001 13 0.00 91,518,796 5.06
10,000,001 17 0.01 324,790,250 17.94
50,000,001 4 0.00 596,506,606 32.95
Total 260,438 100.00 1,810,169,256 100.00
The Board is recommending the sum of N3.00 per share to be paid as dividend with
a bonus issue of one share for every four held to those shareholders whose names
appear in the Company`s Register of Members kept in Nigeria as at the close of
business on 29 April 2011, for shareholders` approval at the next Annual General
1 April 2011
Macquarie First South Advisers (Proprietary) Limited
Date: 01/04/2011 12:00:01 Supplied by www.sharenet.co.za
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