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Oao - Oando Plc - Audited Financial Statements For The Year Ended 31

Release Date: 21/05/2012 16:00:02      Code(s): OAO
OAO - Oando PLC - Audited financial statements for the year ended 31            
December 2011                                                                   
Oando PLC                                                                       
(Incorporated in Nigeria and registered as an external company in South         
Africa)                                                                         
External Registration number: RC 6474                                           
Company registration number: 2005/038824/10                                     
Share Code on the JSE Limited: OAO                                              
Share Code on the Nigerian Stock Exchange: UNTP                                 
ISIN: NGOANDO00002                                                              
("Oando" or the "Company" or the "Group")                                       
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011                
Shareholders are advised that the following announcement for the audited        
financial statements for the year ended 31 December 2011, which has been        
prepared in terms of the Nigerian Accounting Standards and the Companies and    
Allied Matters Act, 2004, was released on the Nigerian Stock Exchange today,    
21 May, 2012.                                                                   
The audited financial statements prepared in terms of International             
Financial                                                                       
Reporting Standards will be announced in due course.                            
QUOTE                                                                           
The Directors are pleased to announce the audited financial statements of       
Oando for the year ended 31 December 2011.                                      
The Group retained the existing structure of six divisions in line with the     
nature of its businesses. The divisions consist of the following: Oando         
Marketing, Oando Supply and Trading, Oando Energy Services, Oando Gas and       
Power, Oando Exploration and Production and Oando Refinery and Terminals.       
Herewith the highlights of our results for the year ended 31 December 2011:     
Profit and Loss Information                                                     
                              2011            2010          % Variance          
                                                            Inc/(Dec)           
N`000           N`000           %                 
Turnover                       586,619,034   378,925,430       55               
Gross profit                    68,440,887    54,128,039       26               
Selling & Marketing expenses     7,901,252     7,220,296        9               
Administrative expenses         42,150,327    22,484,703       87               
Interest received                2,533,121     1,468,674       72               
Other operating income          12,456,510     4,174,589      198               
Interest payable                 8,825,689     5,747,458       54               
Profit before taxation          24,553,250    24,318,845        1               
Exceptional charges              9,624,853        -           100               
Taxation                        11,481,754     9,943,879       15               
Profit after taxation            3,446,643    14,374,966      (76)              
Attributable to equity holders   3,666,730    14,379,066      (74)              
Minority Interests                (220,067)       (4,100)    5,268              
Basic earnings per 50K share           162           829      (81)              
(Kobo)                                                                          
Adjusted earnings per 50K              161            -                         
share (Kobo)                                                                    
                              No. of shares   No. of                            
                                              shares                            
No of 50k shares issued and     2,274,118,138  1,810,169,256   26               
fully paid                                                                      
Balance Sheet Information                                                       
                              2011            2010         % Variance           
Inc/(Dec)           
                              N`000           N`000         %                   
Fixed assets                   175,455,217     156,285,721    12                
Long-term receivable            34,426,127      25,492,756    35                
Inventories                     32,458,405      22,386,418    45                
Trade debtors and other        106,219,743      80,167,578    32                
debtors                                                                         
Cash & bank balances            21,033,529      12,187,072    73                
Trade creditors and accruals    74,017,827      60,467,691    22                
Short-term borrowings          119,993,236      71,020,640   69                 
Working capital                (46,275,717)    (23,129,187)  100                
Long-term borrowings            85,591,771      76,348,834    12                
Share capital and reserves      92,427,779      93,049,534    (1)               
Performance synopsis                                                            
Oando`s performance during the year ended 31 December, 2011 is mainly           
attributable to the following:                                                  
Turnover (increased by 55%)                                                     
Increase in volume of refined petroleum products (PMS and AGO) sold during      
the year compared to 2010.                                                      
- Higher average crude oil prices in 2011 compared to 2010.                     
- 12.15MW Akute Power Plant operated for twelve months in 2011 compared to      
 nine months during the same period of 2010.                                    
- New customers were connected to Gaslink pipeline network.                     
- One of our rigs, Teamwork, operated throughout the year in 2011 compared      
to seven months in 2010.                                                       
Gross profit (increased by 26%)                                                 
Gross margin increases occurred due to increase in sales, however, the          
growth in gross margin was lower than that of turnover because of the           
significant reduction in gross margins on imported petroleum products due to    
product gluts and demurrage.                                                    
Administrative and selling expenses (increased by 87%)                          
-    Lower costs were recovered in OML 125 compared to prior year. This         
factor coupled with depreciation of the Naira by about N7 resulted in       
    about 100% increase in administrative expenses for OML 125.                 
-    Exchange loss on foreign currency balances increased from N1.1 billion     
    in 2010 to about N4.7 billion during the year.                              
-    Additional operating costs (including depreciation) incurred on new        
    businesses (rig and independent power plant).                               
-    Higher volume petroleum products were sold at upcountry locations          
    thereby incurring more selling expenses compared to the same period in      
2010.                                                                       
Other operating income (increased by 198%)                                      
-    Increased exchange gain (N8 billion) was earned during the year due to     
    increase in exchange rate of Naira compared (N1.3 billion) recorded in      
2010.                                                                       
-    Increased in project management income was recorded by the Gas and         
Power Division compared to 2010.                                                
Interest payable (increased by 54%)                                             
-    General increase in borrowing costs from an average of about 14% to 18%    
-    Additional finance costs on newly operational assets. (For instance,       
    interests costs were charged to the profit and loss account for twelve      
    months in 2011 on the second rig and Akute Power Plant whereas it was       
capitalized for some months in 2010 before commencing operation).           
-    Depreciation of the Naira by about 5% against the US Dollar caused         
    increase in carrying amounts of foreign borrowings                          
-    Increased working capital requirement came with additional costs           
Exceptional charges (increased by 100%)                                         
-    Cost incurred on some fund raising activities like Global Depository       
    Receipt (GDR) and prospecting costs for acquisition of upstream asset       
    were written off in 2011. Similar expenses were not incurred in 2010.       
-    Termination fees on existing technical and management services             
    agreements                                                                  
-    Impairment charges on one of the rigs (named OES Professionalism)          
Fixed Assets and Long Term Receivables (increased by 12% and 35%                
respectively)                                                                   
-    Additional capital expenditure on OML 90, OML 56, East Horizon Gas         
    Company`s 128 kilometre natural gas pipeline and the refurbishment of       
    the third rig in preparation for operational uses.                          
-    Commencement of construction work on new projects, e.g, Apapa Single       
    Point Mooring(SPM)                                                          
Inventories (increased by 45%)                                                  
-    More petroleum products were received towards the end of 2011 compared     
to the same period of 2010                                                  
-    Higher average crude oil prices                                            
Trade debtors and other debtors (increased by 32%)                              
-    Additional receivables from new businesses (power plant, OES Teamwork      
which was in operation for a longer period in 2011 when compared to the     
    corresponding period in 2010.                                               
-    Increase in trading activities in 2011 compared to 2010                    
Cash and bank (increased by 73%)                                                
-    Improvement in operating cash flows.                                       
Trade creditors and accruals (increased by 22%)                                 
-    Improvement in payment to creditors, which was facilitated by receipts     
    from debtors and cash generated from operations.                            
Relatively higher inventories compared to the same period in 2010           
Short-term Borrowings and Long-term Borrowings (increased by 69% and 12%        
respectively)                                                                   
-    Depreciation of the Naira in, 2011 relative to the same period of 2010     
resulted in increase in foreign-currency denominated short term             
    borrowings.                                                                 
-    Additional borrowings were secured to finance the capital expenditure      
    (rig upgrade, gas pipeline construction and development of upstream         
assets)                                                                     
-    Additional funding requirements for import finance due to increase         
    costs and volume of petroleum products                                      
Capital and Reserves (increased by 1%)                                          
-    Reduction in equity occurred due to lower profit after taxation            
    compared to 2010 as a result of the exceptional charges earlier             
    described.                                                                  
Shareholding                                                                    
We remain one of the few companies listed with shareholders base in excess      
of 260,000. As of 31 December 2011, the range of shareholdings of the           
company is as shown below:                                                      
Range                     No. of  Holders  Units         Units%                 
Holders %                                              
1        -      1000      168,436 63.96     62,026,381   3.69                   
1001     -      5000      73,118  27.76    149,867,546   6.60                   
5001     -      10000     10,376  3.94      73,186,851   3.23                   
10001    -      50000     9,172   3.48     190,197,969   7.65                   
50001    -      100000    1,068   0.41      75,619,577   2.97                   
100001   -      500000    923     0.35     186,875,913   6.36                   
500001   -      1000000   111     0.04      78,941,581   3.76                   
1000001  -      5000000   105     0.04     220,986,752   9.79                   
5000001  -      10000000  19      0.01     140,994,616   5.06                   
10000001  -               23      0.01     488,425,846   17.94                  
50000000                                                                        
50000001  -               1       0.00      59,889,556   32.95                  
100000000                                                                       
100000001 -               3       0.00     547,105,550                          
2274118138                                                                      
263355  100      2,274,118,138 100.00                  
QUOTE                                                                           
21 May 2012                                                                     
Sandton                                                                         
JSE Sponsor                                                                     
Macquarie First South Capital (Proprietary) Limited                             
Date: 21/05/2012 16:00:02 Supplied by www.sharenet.co.za                     
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