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Oao - Oando Plc - Unaudited Results For The Three Months Ended 31 March 2011

Release Date: 17/05/2011 13:30:03      Code(s): OAO
OAO - Oando Plc - Unaudited results for the three months ended 31 March 2011    
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")                                       
UNAUDITED RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2011                      
Highlights                                                                      
-   Turnover of US$761.35 million                                               
-   Gross profit of US$104.69 million                                           
-   Operating profit of US$52.01 million                                        
-   Profit after tax of US$21.17 million                                        
-   Attributable profit after tax of US$21.17 million                           
-   Earnings per share of 1.17 cents                                            
-   Increased contribution by gas and power divisions                           
-   Two rigs were in operations during the period                               
Review of results                                                               
Oando, which holds a primary listing on the Nigerian Stock Exchange ("NSE") and 
a secondary listing on the Main Board of the JSE Limited ("JSE"), reports profit
after tax ("PAT") for the three months ended 31 March 2011 of US$21.17 million. 
Statement of comprehensive income analysis                                      
Revenue increased by 23% compared with the same period for 2010. Profit before  
tax increased by 10%. The following are key highlights of this period`s         
performance:                                                                    
Turnover                                                                        
Turnover increased by 23% compared to the three months ended 31 March 2010 ("the
comparative period"). This is attributable mainly to the following:             
- The 12.15MW Akute Power Plant was operational for the full quarter ended 31   
March 2011 compared to it being commissioned towards the end of the comparative 
period.                                                                         
- Additional customers were connected to the gas distribution network.          
- Two rigs were operational during this period compared with only one being     
operational during the comparative period. The second rig (Teamwork) became     
operational during April 2010.                                                  
- Revenue earned from the sale of crude oil increased due to a combination of   
price increases and increased output.                                           
- Petroleum products imported during the last quarter of the 2010 financial year
were sold by the Supply and Trading business during the period under review.    
Other operating income                                                          
Other operating income decreased due to overdue interest recovered from a       
customer during the comparative period, resulting in an increase in the profit  
after tax for that period. The interest recovery did not reoccur during the     
period under review.                                                            
Administrative and selling expenses                                             
Administrative expenses increased by 17% compared to the comparative period, due
to the following:                                                               
    *    Additional operating expenses incurred attributable to the Akute Power 
         Plant.                                                                 
*    Additional expenses incurred on the second rig.                        
Selling and marketing expenses increased by 12% due to higher volumes of        
petroleum products transported and sold at upcountry locations during the 2011  
period when compared with the comparative period.                               
Finance costs decreased by 33% due to lower interest rates and improved         
liquidity originated by the rights issues proceeds.                             
Statement of financial position analysis                                        
Property, plant and equipment increased by 16% compared with the comparative    
period due to capital expenditure incurred on power plants, rigs refurbishment  
and upstream assets development. Long term receivables (cost of gas distribution
pipeline assets) rose by 44% above the 2010 levels due to additional capital    
expenditure incurred on the ongoing East Horizon`s Gas pipeline project and new 
customers being connected to the Greater Lagos distribution network.            
Inventory for the current period decreased by 11% compared to the comparative   
period, due to the following:                                                   
- Decreased importation of petroleum products as a result of glut in the        
market.                                                                         
- Deliberate efforts to optimise stock levels for working capital management    
purposes.                                                                       
Trade and other receivables increased by 43%, due to the following:             
- Increased receivables from the Akute Power Plant and the second rig being     
operational during the current period, both of which were not operational during
the same period for 2010.                                                       
- Acquisition costs incurred for new upstream assets                            
Prospects                                                                       
The Group will continue to leverage the synergy provided by the diversified     
portfolio in order to deliver superior values to stakeholders.                  
The Group intends to continue earning increased revenue from its upstream       
businesses while further development activities are being carried out in Oil    
Mining License ("OML") 90. Further growth in the upstream portfolio is envisaged
through the strategic acquisition of producing or near term assets on an ongoing
basis. These efforts are intended to improve contribution by the upstream       
businesses to the Group`s revenue and profitability in the future.              
More customers are being connected to the Greater Lagos distribution network in 
order to exhaust the additional capacity provided by the completed Greater Lagos
Phase 3 pipeline network. Construction work at the Eastern Horizon Company`s 128
kilometre pipeline project is at an advanced stage and is expected to be        
commissioned during 2011.                                                       
The introduction of the sovereign notes for settlement of the Petroleum Support 
Fund ("PSF") receivables have significantly shortened the PSF receivables cycles
and improved working capital management. The Supply & Trading business will     
continue to take advantage of this window and consolidate its foray into the    
West African markets. While it is expected that the incoming administration at  
the Federal level will take a definite stand on the deregulation of the         
downstream sector of petroleum industry, the situation is being analysed        
enabling the Group to maximize the advantages inherent to the deregulation.     
The Energy Service business continued the refurbishment work on the third rig   
and this is expected to be completed and become operational during 2011.        
The Group is confident that the diversified assets portfolio has enough         
capability to deliver continually improving revenue and profitability.          
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2011     
                                        31 March 2011   31 March 2010           
ASSETS                                   US$`million     US$`million            
Non-current assets                                                              
Property Plant & Equipment               1,030.23        884.08                 
Intangible Assets                        157.43          167.03                 
Available for sale investment            0.01            0.01                   
Deferred income tax assets               24.17           -                      
Long Term Receivables                    182.01          126.07                 
                                        1,393.85        1,177.18                
Current assets                                                                  
Inventories                              134.84          151.63                 
Trade & Other Receivables                613.16          386.25                 
Cash & Cash Equivalents                  238.97          336.03                 
986.97          873.91                  
Total assets                             2,380.82        2,051.10               
Equity                                                                          
Capital & Reserves attributable to                                              
equity holders                                                                  
Share Capital                            5.99            3.06                   
Share Premium                            324.74          201.21                 
Revaluation Reserve                      123.89          50.53                  
Retained Earnings                        190.97          122.05                 
                                        645.59          376.85                  
Minority Interest                        9.05            17.91                  
Total equity                             654.64          394.76                 

Liabilities                                                                     
Non-Current Liabilities                                                         
Borrowing                                590.36          172.82                 
Deferred income tax liabilities          41.72           24.34                  
Provisions for liabilities and charges   27.97           0.41                   
                                        660.05          197.57                  
Current Liabilities                                                             
Trade & Other Payables                   478.22          413.73                 
Current Income Tax Liabilities           40.45           33.32                  
Borrowings                               547.46          1,011.21               
Total Liabilities                        1,066.13        1,655.83               

Total Equity & Liabilities               2,321.28        2,050.59               
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED 31   
MARCH 2011                                                                      
31 March 2011     31 March 2010              
                                   US$`million       US$`million                
Sales                               761.35            617.83                    
Cost of Sales                       (656.66)          (531.46)                  
Gross Profit                        104.69            86.37                     
Selling & Marketing Costs           (12.61)           (11.21)                   
Administrative Expenses             (41.29)           (35.17)                   
Other Operating Income              1.23              15.83                     
Operating Profit                    52.02             55.82                     
Net Finance Costs                   (14.29)           (21.46)                   
Profit Before Taxation              37.73             34.36                     
Income Tax Expense                  (16.55)           (13.18)                   
Profit After Expense                21.17             21.18                     
Attributable to:                                                                
Non-Controlling Shareholders        0.21              0.22                      
Equity Holders of the Company       20.96             20.96                     
21.17             21.18                      
The Group is organised into six main business divisions:                        
-   The Exploration and production of oil and gas business ("E&P") is           
   involved in the exploration for and production of oil and gas through        
the acquisition of rights in oil blocks on the Nigerian continental          
   shelf and deep offshore. The E&P segment of the business owns several        
   interests, including OML 56, OML 90, OML 123 and OML 134 and Oil             
   Prospecting License ("OPL") 236 and OPL 278.                                 
-   The Refining and Terminals business is involved in the refining of          
   crude and storage and logistics for distribution of petroleum products.      
   This division was recently carved out of the downstream marketing            
   business. It has initiated steps towards establishing a refinery at the      
Lekki Free Trade Zone in Lagos.                                              
-   The Gas and power business is involved in the distribution of natural       
   gas through its subsidiaries, Gaslink Nigeria Limited ("GNL") and East       
   Horizon Gas Company Limited ("EHGC"). GNL operates about a 100               
kilometres of Greater Lagos natural gas distribution franchise and has       
   connected over one hundred industrial customers.  EHGC is constructing       
   a 128 kilometre natural gas pipeline network to supply natural gas to        
   United Cement Company ("UNICEM:) and other customers at Calabar,             
Eastern Nigeria. The Gas and power business also incorporates Akute          
   Power Limited that is in the process of constructing an Independent          
   Power Plant to supply electricity to Lagos State Water Corporation.          
-   The Energy services business is involved in the provision of services       
such as drilling and completion fluids and solid control waste               
   management; oil-well cementing and other services to upstream                
   companies. The Energy services business presently has five swamp rigs.       
-   The Marketing business is involved in retail and commercial sales of        
refined petroleum products with over 600 retail outlets in Nigeria and       
   West African countries.                                                      
-   The Supply and Trading business imports cargoes of petroleum products       
   for sale to marketing companies and other corporate bodies within and        
outside Nigeria.                                                             
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY FOR THE THREE MONTHS ENDED 31 MARCH 2011                 
                        Share        Share        Other        Cumulative       
Capital      Premium      reserves     translation      
                                                               adjustment       
                        US$`million  US$`million  US$`million  US$`million      
Balance as at 31         6.09         329.87       124.91       (0.03)          
December 2010                                                                   
Retained profit for the  -            -            -            -               
period                                                                          
Bonus issue of shares    -            -            -            -               
Dividend paid            -            -            -            -               
Exchange difference      (0.1)        (5.13)       (1.02)                       
Reversal of revaluation  -            -            -            -               
surplus                                                                         
Deferred tax on          -            -            -            -               
revaluation surplus                                                             
Share Issue/acquisition  -            -            -                            
Cost                                                                            
Balance as at 31 March   5.99         324.74       123.89       (1.95)          
2011                                                                            
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY FOR THE THREE MONTHS ENDED 31 MARCH 2011 (CONTINUED)     
Retained     Minority      Total            
                                    earnings     interest      equity           
                                    US$`million  US$`million   US$`million      
Balance as at 31 December 2010       172.01       7.42          640.30          
Retained profit for the period       20.96        0.21          21.17           
Bonus issue of shares                -            -             -               
Dividend paid                        -            -             -               
Exchange Difference                  (3.07)       2.48          (10.12)         
Reversal of revaluation surplus      -            -             -               
Deferred tax on revaluation surplus  -            -             -               
Share Issue/acquisition Cost         -            -             -               
Balance as at 31 March 2011          189.90       10.12         644.52          
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY FOR THE THREE MONTHS ENDED 31 MARCH 2010                 
                        Share        Share        Revaluation  Cumulative       
                        Capital      Premium      reserve      translation      
adjustment       
                        US$`million  US$`million  US$`million  US$`million      
Balance as at 31         3.54         231.66       39.84        (17.54)         
December, 2009                                                                  
Retained profit for the  -            -            -            -               
period                                                                          
Bonus issue of shares    -            -            -            -               
Dividend paid            -            -            -            -               
Exchange difference      (0.48)       (30.60)      -            -               
Reversal of revaluation  -            -            10.69        -               
surplus                                                                         
Deferred tax on          -            -            -            -               
revaluation surplus                                                             
Share Issue/acquisition  -            -            -            -               
Cost                                                                            
Balance as at 31 March   3.06         201.06       50.53        (1.95)          
2010                                                                            
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY FOR THE THREE MONTHS ENDED 31 MARCH 2010 (CONTINUED)     
                                   Retained      Minority     Total equity      
earnings      interest                       
                                   US$`million   US$`million  US$`million       
Balance as at 31 December 2009      124.56        6.22         366.70           
Retained profit for the period      21.17         0.04         21.20            
Bonus issue of shares                                                           
Dividend paid                                                  (7.52)           
Exchange Difference                 (25.91)                                     
Reversal of revaluation surplus                                                 
Deferred tax on revaluation                                                     
surplus                                                                         
Share Issue/acquisition Cost                                                    
Balance as at 31 March, 2010        119.85        6.26         388.28           
NOTES TO REVIEWED RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2011              
1. General information                                                          
Oando 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 2000 consequent
to the sale of the Federal Government`s 40% shareholding in the Company. 30% was
sold to core investor, Ocean and Oil Investments Limited and the remaining 10%  
was sold to the Nigerian public. In December 2002, the Company merged with Agip 
Nigeria Plc following the acquisition of 60% of Agip Petroli`s stake of Agip    
Nigeria Plc in August 2002. The Company formally changed its name from Unipetrol
Nigeria Plc to Oando Plc in December 2003.                                      
The principal activity of the Company locally and internationally is strategic  
investments in energy companies across West Africa. The Group is involved in the
following business activities via its subsidiary companies:                     
-   Marketing of petroleum products, manufacturing and blending of              
lubricants via Oando Marketing Limited.                                      
-   Distribution of natural gas for industrial customers via Gaslink            
   Nigeria Limited.                                                             
-   Supply and distribution of petroleum products via Oando Supply and          
Trading, Nigeria and Oando Trading, Bermuda.                                 
-   Supply of energy services to upstream companies via Oando Energy            
   Services.                                                                    
-   Exploration and Production via Oando Exploration and Production.            
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 periods 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                                                     
During 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 three months ended 31 March 2011.                                
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 the Generally Accepted Accounting Principles ("GAAP"), the            
   revaluation surplus included in equity in respect of an item of              
property, plant and equipment were transferred to 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.                                            
-   The Group obtained approval for its share option scheme from the            
regulatory authority in February 2009. Accordingly, all shared-based         
   payment in operation has been subjected to and accounted for under IFRS      
   2 for the first time in 2008.                                                
-   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 five 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 and accumulated                 
   amortisation as at 31 December 2002 was 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 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 Segment 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 statement of            
comprehensive income, 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, which 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 statement of comprehensive income as        
  part of the gain or loss on sale.                                             
3. Earnings Per Share (EPS)                                                     
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.                                           
31 March 2011  31 March 2010         
Profit attributable to equity holders of    20.96          20.96                
the Company (US$`million)                                                       
Average number of shares in issue           1810.17        905.08               
(millions)                                                                      
Basic EPS (cents)                           1.16           2.32                 
                                                                                
                                                                                
Profit attributable to equity holders of    20.96          20.96                
the Company                                                                     
Weighted average number of shares in issue  1810.17        905.08               
(millions)                                                                      
Adjustment for bonus issues                 -              -                    
Weighted average number of shares for       1810.17        905.08               
diluted EPS (millions)                                                          
Diluted EPS (cents)                         1.16           2.32                 

Headline Earnings Per Share ("HEPS")        1.16           2.32                 
Profit attributable to equity holders of    20.96          20.96                
the Company                                                                     
Adjusted for:                                                                   
Profit on sale of buildings associated with -              -                    
discontinued operations                                                         
Profit/(Loss) on sale of other assets       -              -                    
Loss on sales of investment in affiliate    -              -                    
companies                                                                       
Tax on sales of investment in affiliate     -              -                    
companies                                                                       
HEPS attributable to earnings basis (cents) 1.16           2.32                 
HEPS attributable to diluted earnings basis 1.16           2.32                 
(cents)                                                                         
Net assets per share (cents)                36             44                   
Tangible assets per share (cents)           77             130                  
4. Independent audit by the auditors                                            
This results for the quarter ended 31 March 2011 has not been audited by our    
auditors PricewaterhouseCoopers                                                 
5. Post balance sheet events                                                    
There are no significant post balance sheet events that in the opinion of the   
directors will have a material impact on the accounts herein presented.         
The Audited Results for the year ended 31 December 2010 will be released on or  
before Friday, May 27. 2011.                                                    
For and on behalf of the Board                                                  
Mr J Adewale Tinubu                                                             
Group Chief Executive                                                           
(insert date} May 2011                                                          
Directorate:                                                                    
1    Maj. Gen. M. Magoro (Rtd), OFR                  Chairman                   
2    Mr. J.A.Tinubu                                  Group CEO                  
3    Mr. O. Boyo                                     Deputy Group CEO           
4    Mr. B. Osunsanya                                Group Exec. Director       
5    Mr. Olufemi Adeyemo                             Exec. Director             
6    Mr. Oghogho Akpata                              Director                   
7    Chief Sena Anthony                              Director                   
8    Ms. Nana Afoah Appiah-Korang                    Director                   
9    HRM. Oba A. Gbadebo, CFR                        Director                   
10.  Ms Amal Pepple, CFR                             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)        
Sandton                                                                         
17 May 2011                                                                     
Sponsor: Macquarie First South Advisers (Pty) Limited, The Place, 1 Sandton     
Drive, South Wing, Sandton, Johannesburg, 2196, South Africa.                   
Date: 17/05/2011 13:30:01 Supplied by www.sharenet.co.za                     
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