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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   
2010                                                                            
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: NGOANDO00002                                                              
("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  
April 2011.                                                                     
The audited financial statements prepared in terms of International Financial   
Reporting Standards will be announced in due course.                            
QUOTE                                                                           
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         
                                                             Inc/(Dec)          
                               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)              
(Kobo)                                                                          
Adjusted earnings per 50K       931             558           67                
share (Kobo)                                                                    
                               No. of shares   No. of                           
                                               shares                           
No of 50k shares issued and     1,810,169,256   905,084,628   100               
fully paid                                                                      
Balance Sheet Information                                                       
                               2010            2009          % Variance         
Inc/(Dec)          
                               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)              
debtors                                                                         
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                
Performance synopsis                                                            
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  
price gains.                                                                    
- 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 
facility.                                                                       
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 
and equipment.                                                                  
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      
deregulation.                                                                   
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 
investments.                                                                    
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  
year.                                                                           
Shareholding                                                                    
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      
below:                                                                          
Range          No. of         Holders %      Units          Units%              
              Holders                                                           
1        -     186,489        71.61          66,766,954     3.69                
1000                                                                            
1,001    -     57,296         22.00          119,401,419    6.60                
5,000                                                                           
5,001     -    8,320          3.19           58,576,918     3.23                
10,000                                                                          
10,001    -    6,773          2.60           138,569,700    7.65                
50,000                                                                          
50,001     -   752            0.29           53,697,940     2.97                
100,000                                                                         
100,001    -   589            0.23           115,070,925    6.36                
500,000                                                                         
500,001     -  94             0.04           67,999,665     3.76                
1,000,000                                                                       
1,000,001      91             0.03           177,270,083    9.79                
-  5,000,000                                                                    
5,000,001      13             0.00           91,518,796     5.06                
-  10,000,000                                                                   
10,000,001     17             0.01           324,790,250    17.94               
-  50,000,000                                                                   
50,000,001     4              0.00           596,506,606    32.95               
-  99,999,999                                                                   
                                                                                
Total         260,438        100.00         1,810,169,256  100.00               
Dividend                                                                        
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
Meeting.                                                                        
QUOTE                                                                           
Sandton                                                                         
1 April 2011                                                                    
JSE Sponsor                                                                     
Macquarie First South Advisers (Proprietary) Limited                            
Date: 01/04/2011 12:00:01 Supplied by www.sharenet.co.za                     
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