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Oao - Oando Plc - Unaudited Results For The Period Ended 30 June, 2011

Release Date: 28/07/2011 17:04:02      Code(s): OAO
OAO - Oando Plc - Unaudited results for the period ended 30 June, 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 period ended 30 June, 2011                            
Highlights                                                                      
-   Turnover of $1,770.19 million                                               
-   Gross profit of $219.66 million                                             
-   Operating profit of $106.91 million                                         
-   Profit after tax of $44.15 million                                          
-   Attributable profit after tax of $43.71 million                             
-   Earnings per share of 2.41 cents                                            
-   Higher gross margin contribution by the gas and power division when         
   compared to segment gross margin performance for the six months period       
ended 2010.                                                                  
-   Six month`s operation of the second rig during the period                   
                                                                                
Review of results                                                               
Oando, which has a primary listing on the Nigerian Stock Exchange ("NSE") and a 
secondary listing on the JSE Limited ("JSE"), reports unaudited profit after tax
("PAT") for the half year period ended 30 June 2011 of $44.15 million.          
Statement of comprehensive income analysis                                      
The Group`s turnover and profit before tax increased by 52% and 30% respectively
when compared with the same period in 2010%. The following were key highlights  
of the period`s performance:                                                    
Turnover                                                                        
Turnover increased by 52% compared with the same period 2010. This was          
attributable to the following:                                                  
The 12.15MW Akute Power Plant was operational for six months in 2011 compared to
about three months during the same period of 2010.                              
New customers were connected to Gaslink pipeline network.                       
The Second rig (Teamwork) was operational for six months in 2011 compared to two
months during the same period in 2010.                                          
Additional revenue arising from increase in production of crude oil and         
favourable oil prices.                                                          
Petroleum products imported during the last quarter of 2010 were sold by our    
Supply & Trading division during the period under review.                       
Gross profit                                                                    
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)         
Other operating income                                                          
Other operating income reduced by 11% compared to 2010 due to recovery of       
doubtful interest claims from debtors in 2010 contributing significantly to     
other operating income in prior year. No such recoveries were made in 2011.     
Administrative expenses                                                         
Administrative expenses increased by 14% compared to the same period of 2010 due
to additional operating costs (including depreciation) incurred on new          
businesses (rig and independent power plant).                                   
Selling and marketing expenses                                                  
Selling and marketing expenses increased by 5% due to higher volumes of         
petroleum products transported to upcountry locations during the 2011 period    
compared to the same period in 2010.                                            
Finance costs                                                                   
Finance costs reduced by 19% due to:                                            
Reduced debt burden due to pay-down from the proceeds of 2010 rights issues.    
Lower interest rates on Medium Term Loan throughout the six months of 2011      
compared to two months (post restructuring) in 2010.                            
Statement of financial position analysis                                        
Property, plant and equipment                                                   
Property, plant and equipment increased by 1% when compared with the balance as 
at 31 December 2010 as a result of:                                             
Additional capital expenditure on Oil Mining Licence ("OML") 90, OML 56, 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.                                                                  
Long term receivables                                                           
Long term receivables (cost of gas distribution pipeline assets) increased by   
20% when compared to balance as at 31 December 2010, due to additional capital  
expenditure incurred on the East Horizon`s Gas pipeline project and new         
customers` connection at the Greater Lagos distribution network.                
Inventory                                                                       
Inventory for the period increased by 35% compared to the balance as at 31      
December 2010, due to additional cargoes of imported petroleum products received
towards the end of the 2011 period by the Supply and Trading division when      
compared to balance as at 31 December 2010.                                     
Trade and other receivables                                                     
Trade and other receivables increased by 46%. This was attributable to          
additional receivables from new businesses (power plant, rig).                  
Trade creditors and other creditors                                             
Trade creditors and other creditors increased due to imported petroleum products
received in June 2011.                                                          
Prospects                                                                       
The Group will continue the pursuit of optimum resources allocation by deploying
increased resources to areas where additional values can be extracted within the
scope of the diversified portfolio.                                             
The ongoing development of OML 90 has reached an advanced stage while additional
wells are to be drilled in OML 56 and 125. The Group shall continue to pursue   
further growths in the upstream portfolio through strategic acquisition of      
producing or near term assets on an ongoing basis. These activities are intended
to improve the contribution by the upstream business to the Group profitability 
in the future.                                                                  
The Group will continue to connect new customers to the 100km Greater Lagos gas 
distribution network until the available capacity is exhausted. Construction    
work at the Eastern Horizon Company`s 128 kilometer pipeline project is nearing 
completion and the Group is optimistic of commissioning the project during the  
2011 financial year. The Gas and Power business recently acquired a gas         
distribution facility in Port Harcourt. The Group expects to obtain full control
of this facility before the end of the 2011 financial year. In addition, more   
captive power plant mandates are being pursued in Lagos.                        
The sovereign notes arrangement for settlement of Petroleum Support Fund ("PSF")
receivables is working as planned and continues to have a positive impact on PSF
receivables cycles and capital management. The Supply & Trading division will   
continue to take advantage of this window and consolidate its foray into the    
West African markets. We shall continue to improve on operational efficiency of 
the downstream marketing businesses while awaiting the Federal Government`s next
line of actions and position about deregulation of the petroleum industry.      
The Energy Services business will complete ongoing refurbishment of the third   
rig and deploy it into operational use before the end of the 2011 financial     
year. Other product offerings in this business division are being revived. .    
In view of the abovementioned strategic actions, the Group is confident that it 
will continue to deliver improved revenue and profitability.                    
Condensed consolidated statements of financial position as at 30 June 2011      
30 June 2011    31 Dec  2010            
ASSETS                                   US$`million     US$`million            
Non-current assets                                                              
Property Plant & Equipment               1,054.32        1,043.92               
Intangible Assets                        156.94          164.22                 
Available for sale investment            0.01            0.01                   
Deferred income tax assets               22.76           75.88                  
Long Term Receivables                    192.23          160.43                 

Current assets                                                                  
Inventories                              203.22          150.54                 
Trade & Other Receivables                766.82          523.63                 
Cash & Cash Equivalents                  110.29          81.91                  
                                                                                
Total assets                             2,506.59        2,200.54               
Equity                                                                          
Capital & Reserves attributable to                                              
equity holders                                                                  
Share Capital                            7.48            6.59                   
Share Premium                            324.16          361.52                 
Other Reserves                           127.01          77.06                  
Retained Earnings                        177.02          180.50                 
                                        635.67          625.67                  
Minority Interest                        9.02            6.81                   
Total equity                             644.69          632.48                 
                                                                                
Liabilities                                                                     
Non-Current Liabilities                                                         
Borrowing                                629.46          503.11                 
Deferred income tax liabilities          43.20           104.60                 
Provisions for liabilities and charges   30.12           21.85                  
                                        702.78          629.56                  
Current Liabilities                                                             
Trade & Other Payables                   661.98          423.74                 
Current Income Tax Liabilities           37.81           37.16                  
Borrowings                               459.33          477.60                 
Total Liabilities                        1,861.90        1,568.06               
                                                                                
Total Equity & Liabilities               2,506.59        2,200.54               
Consolidated statement of comprehensive Income for the period ended 30 June 2011
30 June 2011      30 June 2010               
                                   US$`million       US$`million                
Sales                               1,770.19          1,167.96                  
Cost of Sales                       (1,550.53)        (980.77)                  
Gross Profit                        219.66            187.19                    
Selling & Marketing Costs           (24.94)           (23.81)                   
Administrative Expenses             (114.22)          (100.19)                  
Other Operating Income              26.41             29.57                     
Operating Profit                    106.91            92.76                     
Net Finance Costs                   (22.50)           (27.92)                   
Profit Before Taxation              84.41             64.84                     
Income Tax Expense                  (40.26)           (28.81)                   
Profit After Expense                44.15             36.03                     
Attributable to:                                                                
Non-Controlling Shareholders        43.71             35.67                     
Equity Holders of the Company       0.44              0.36                      

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 interest       
   OML 56, OML 90, OML 123 and OML 134 and Oil Prospecting Licence("OPL")       
   236 and OPL 278, amongst others.                                             
-   The Refining and Terminals business is involved in the refinement of        
   crude and storage and logistics for distribution of petroleum products.      
   This business 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 approximately about       
100 kilometers Greater Lagos natural gas distribution franchise and has      
   connected over one hundred industrial customers.  EHGC is constructing       
   128 kilometers 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 incorporated Akute          
   Power Limited that is building an Independent Power Plant to supply          
   electricity to Lagos State Water Corporation ("LSWC").                       
-   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 retailed 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.                                                             
Below is the Group performance on a divisional basis for the six months period  
ended 30 June 2011:                                                             
                         Exploration &  Marketing   Supply &     Refining &     
Production                 Trading      Terminals      
                         US$`million    US$`million US$`million  US$`million    
Gross segment revenue     100.89         661.26      1,041.67     -             
Inter-segment revenue     -              (0.15)      (132.70)     -             
Revenue                   100.89         661.11      908.97       -             
Operating profit/(loss)   57.33          27.52       8.02         -             
Finance costs - net       (10.95)        (6.89)      (0.56)       -             
Profit before income tax   46.38          20.64       7.46        -             
Income tax expenses       (28.80)         (6.58)     (0.22)       -             
Profit for the period     17.58           14.06       7.24        -             
                         Gas & power    Energy      Corporate &  Total          
                                        Services    Others                      
US$`million    US$`million US$`million  US$`million    
Gross segment revenue     51.15          48.08          -         1,903.05      
Inter-segment revenue       -            -                        (132.85)      
Revenue                   51.15          48.08          -         1,770.20      
Operating profit/(loss)   12.01          19.52       (17.49)      108.91        
Finance costs - net       (4.59)         (14.11)      14.60       (22.50)       
Profit before income tax   7.42           5.40        2.89        84.41         
Income tax expenses        (2.23)         (1.97)      (0.46)      (40.26)       
Profit for the year        5.20           3.43        (3.36)      44.15         
Below is the Group performance on an divisional business basis for the six      
months period ended 30 June 2010:                                               
                         Exploration &  Marketing   Supply &     Refining &     
Production                 Trading      Terminals      
                         US$`million    US$`million US$`million  US$`million    
Gross segment revenue     67.68          555.14      949.40       -             
Inter-segment revenue        -              -        (497.41)     -             
Revenue                   67.68          555.14      451.99       -             
Operating profit/(loss)   35.48          19.87       26.85        -             
Finance costs - net       (17.26)        (4.49)      (1.00)       -             
Profit before income tax  18.22          15.38       25.85                      
Income tax expenses       (13.52)        (4.90)      (6.82)                     
Profit for the year       4.70           10.48       19.03                      
                         Gas & power   Energy      Corporate &   Total          
                                       Services    Others                       
US$`million   US$`million US$`million   US$`million    
Gross segment revenue     56.62         45.40         -           1,674.24      
Inter-segment revenue     (2.53)        (6.33)                    (506.28)      
Revenue                   54.07         39.07         -           1,167.96      
Operating profit/(loss)   9.65          20.67         (19.76)     92.76         
Finance costs - net       (1.50)        (16.86)       13.19       (27.92)       
Profit before income tax  8.15          3.81         (6,57)       64.83         
Income tax expenses       (2.28)        (1.27)      (2)           (28.80)       
Profit for the year       5.87          2,54        (6.59)        36.03         
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2011             
                               Share     Share    Other        Cumulative       
Capital   Premium  reserves     translation      
                                                               adjustment       
                               US$milli  US$mill  US$million   US$million       
                               on        ion                                    
Balance as at 31 December 2010  6.59      361.52   77.07        -               
Retained profit for the period  -         -        -            -               
Bonus issue of shares           1.50      -        -            -               
Dividend paid                   -         -        -            -               
Exchange difference             (0.61)    (37.36)  49.94        -               
Reversal of revaluation         -         -        -            -               
surplus                                                                         
Deferred tax on revaluation     -         -        -            -               
surplus                                                                         
Share issue/acquisition Cost    -         -        -            -               
Balance as at 31 June 2011      7.48      324.16   127.01                       
                                         Retained   Minority    Total           
earnings   interest    equity          
                                         US$million US$million  US$million      
Balance as at 31 December 2010            180.50     6.81        632.49         
Retained profit for the period            43.71      0.44        44.15          
Bonus issue of shares                     (1.5)      -           0              
Dividend declared/paid                    (35.89)    -           (35.89)        
Exchange Difference                       (9.80)     1.77        3.94           
Reversal of revaluation surplus           -          -           -              
Deferred tax on revaluation surplus       -          -           -              
Share Issue/acquisition Cost              -          -           -              
Balance as at 30 June 2011                177.02     9.02        644.69         
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2010             
                                Share    Share    Revaluation  Cumulative       
                                Capital  Premium  reserve      translation      
                                                               adjustment       
US$mill  US$mill  US$million   US$million       
                                ion      ion                                    
Balance as at 31 December, 2009  3.54     231.66   39.84        (39.12)         
Retained profit for the period   -        -        -            -               
Bonus issue of shares            -        -        -            -               
Dividend paid                    -        -        -            -               
Exchange difference              1.56     (41.33)  9.13         39.12           
Reversal of revaluation surplus  -        -        -            -               
Deferred tax on revaluation      -        -        -            -               
surplus                                                                         
Share Issue/acquisition Cost     1.02     130.44   -            -               
Balance as at 30 June 2010       6.12     320.77   48.97        0               
Retained   Minority    Total           
                                         earnings   interest    equity          
                                         US$million US$million  US$million      
Balance as at 31 December, 2009           124.56     6.22        366.70         
Retained profit for the period            35.67      0.36        36.03          
Bonus issue of shares                     -          -           -              
Dividend paid                             (33.69)    -           (33.69)        
Exchange Difference                       -          0.24        8.72           
Reversal of revaluation surplus           -          -           -              
Deferred tax on revaluation surplus       -          -           -              
Share Issue/acquisition Cost              -                      131.46         
Balance as at 30 June, 2010               126.54     6.82        509.16         
Notes to reviewed results                                                       
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 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.                  
The principal activity of the Company locally and internationally is to have    
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.                                 
-   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 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.  
The Group adopted the IFRS below, which are relevant to its operations. These   
have been consistently applied in this unaudited financial report for the period
ended 30 June 2011.                                                             
IAS 1 (amendment January 2010) Presentation of financial statements             
IAS 2 (revised 2003) Inventories                                                
IAS 7 (issued 2010) Statement of cash flows                                     
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 2009) 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 amendment effective 2010) Intangible Assets                
IAS 39 (revised 2003) financial instruments: Recognition and measurement        
IFRS 2 (issued 2004) Share-based payments and amendment effective January 2010  
IFRS 3 (revised 2009) Business Combinations                                     
IFRS 5 (issued 2004 and amendment effective 2010) Non-current Assets Held for   
Sale and Discontinued                                                           
IFRIC 9 (revised 2009) Reassessment of Embedded derivatives                     
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 Generally Accpeted Accounting Principles ("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.                     
-   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 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 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; and       
   -   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 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 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 ("EPS")                                                   
Basic 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.                                                                     
                                          30 June 2011      30 June 2010        
Profit attributable to equity holders of   43.71            35.67               
the Company (US$`million)                                                       
Weighted average number of shares in issue 2,262.71         1,583.90            
(millions)                                                                      
Basic EPS (cents)                          1.93             2.25                
                                                                                
Diluted                                                                         
Profit attributable to equity holders of   43.71            35.67               
the Company (US$`million)                                                       
Weighted average number of shares in issue 2,262.71         1,583.90            
(US$millions)                                                                   
Adjustment for bonus issues                                                     
Weighted average number of shares for      2,262.17         1,583.90            
diluted EPS (US$millions)                                                       
Diluted EPS (cents)                        1.93             2.25                
                                                                                
Headline Earnings Per Share                1.93             2.25                
("HEPS")(cents)                                                                 
Profit attributable to equity holders of   43.71            35.67               
the Company (US$`million)                                                       
Adjusted for:                                                                   
Profit on sale of buildings associated     0                0                   
with discontinued operations                                                    
Profit/(Loss) on sale of other assets      0                0                   
Loss on sales of investment in affiliate   0                0                   
companies                                                                       
Tax thereon                                0                0                   
HEPS attributable to earnings basis        1.93             2.25                
(cents)                                                                         
HEPS attributable to diluted earnings      1.93             2.25                
basis (cents)                                                                   
Net assets per share (cents)               110.78           121.54              
Tangible assets per share (cents)          46.59            57.62               
4. Independent audit by the auditors                                            
This condensed consolidated result has not been reviewed The Group`s 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.         
6. Notes                                                                        
The average numbers of shares of 2,262,711,570 include the bonus issue of       
452,542,314 which the shareholders approved at the Annual General Meeting       
("AGM") on 30 June 2011.                                                        
Certain comparative balances (admin expenses - gratuity) have been restated     
based on subsequent events after 30 June, 2010.                                 
Directorate:                                                                    
1   HRM. Oba Michael M. Adedotun Aremu Gbadebo,     Chairman                    
  CFR                                                                           
2   Mr. Jubril Adewale Tinubu                       Group CEO                   
3   Mr. Omamofe Boyo                                Deputy Group CEO            
4   Mr. Mobolaji 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                    
                                                                                
For and on behalf of the Board                                                  
Mr J Adewale Tinubu                                                             
Group Chief Executive                                                           
July 27, 2011                                                                   
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 Transfer Secretary: Computershare Investor Services 
(Proprietary) Limited (Registration number: 2004/003647/07)                     
70 Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown, 2107        
Sandton                                                                         
July 28, 2011                                                                   
JSE Sponsor                                                                     
Macquarie First South Advisers (Pty) Limited, The Place, 1 Sandton Drive, South 
Wing, Sandton, Johannesburg, 2196, South Africa                                 
Date: 28/07/2011 17:04:01 Supplied by www.sharenet.co.za                     
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information disseminated through SENS.                                          



                                        
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