Oando Plc - Press Statement Regarding The Fye 2015 ResultsRelease Date: 01/07/2016 14:14:00 Code(s): OAO
(Incorporated in Nigeria and registered as an external company in South Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
(?Oando? or the ?Company?)
Oando PLC Announces FYE 2015 Results, Posts N381.7 Billion Top Line Revenue
Lagos, Nigeria ? Oando PLC (referred to as ?Oando? or the ?Group?), Nigeria?s leading
indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange,
today announced audited results for the twelve months period ended 31 December, 2015, with
the following highlights:
- Turnover decreased by 10%, N381.7 billion compared to N425.7 billion (2014)
- Gross Profit increased by 7%, N77.7 billion compared to N72.3 billion (2014)
- Loss-Before-Tax decreased to (N51) billion compared to (N138) billion (2014)
- Loss-After-Tax decreased to (N49.7) billion compared to (N145.7) billion (2014)
- Oando Energy Resources (OER): 118% increase in total production to 19.9 million boe
in the 2015 as compared to 9.1 million boe 2014.
- Growth in average production from 24,945 boe/day in 2014 to 54,520 boe/day in 2015.
- Oando Energy Services celebrated 5 years of continuous operations without a Lost
Time Incident (LTI) on ?OES Teamwork? swamp drilling rig.
- OES celebrated 3 years of continuous operations without a Lost Time Incident (LTI)
on ?OES Passion? swamp drilling rig.
- Oando Gas and Power commences 8.5km pipeline expansion for the Central Horizon
Gas Company (CHGC)
- Oando Gas and Power signs Sales and Purchase Agreement (SPA) to sell the Akute
Independent Power Plant (IPP)
- Oando PLC amends and restates terms of recapitalization via the injection of
USD210million from Helios/Vitol JV.
- Oando Downstream increases global footprint by incorporating a trading business in
- Oando Downstream successfully completed construction of a 14.4 million litre PMS
tank in the Apapa terminal.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: ?2015 remained a
turbulent year for the global oil and gas industry as business models had to be altered to
enable industry players survive this new reality, by focusing on cost optimisation, increasing
operational efficiency and downscaling capital expenditure. This re-evaluation of our business
has resulted in the execution of strategic initiatives, which we are confident will return our
business to profitability in the short-term in 2016, with Growth through our dollar earning
upstream portfolio, Deleverage through recapitalization or asset divestments, and Profitability
hinged on refocused dollar oil export trading business?.
Oando Energy Resources increased its total production to 20 million barrels of oil equivalent
(mmboe) in 2015 period compared with 9.1 mmboe in 2014. The increase between the annual
periods was primarily from the acquisition of OMLs 60 ? 63 in H2 2014, as well as the
commencement of production from the Qua-Iboe field in Q1 2015.
OER successfully realized a cash inflow of $234 million by resetting its crude oil hedge from
the previously hedged average of $95.35 per barrel to a new price of $65.00 per barrel on
10,615bbls/day till July 2017 and an additional 1,553 bbls/day until January 2019. The
proceeds of the hedge reset along with cash in hand were used to pay down substantial portion
of our debt.
Oando Energy Services (OES) successfully deployed OES Respect into a 2 year, with 1 year
extension contract with an IOC in October 2015. OES achieved five and three years of
continuous operations with a Zero Lost Time Incident (LTI) on two of its four rigs, ?OES
Teamwork? and ?OES Passion? respectively. We continue to consistently demonstrate our
commitment to world class operating standards, with the proactive use of our EHSSQ and
Oando Gas & Power (OGP) as at December 2015 had completed 87% of the Greater Lagos
Phase 4 pipeline project which runs from Ijora to Bonny Camp in Lagos state, the project
involves the deployment of Horizontal Directional Drilling (HDD) technology across three rivers
on the Marina axis, is expected to be completed by the end of Q3 2016. OGP also commenced
an 8.5km pipeline expansion project for the Central Horizon Gas Company, the expansion
project which is expected to extend the pipeline from 8.3km to 16.8km and increase CHGC?s
capacity to 70mmscf/day, is to be completed in 2016. In line with our strategy to Build, Operate
and Transfer in the gas and power business, we signed the Sales and Purchase Agreement
(SPA) for Akute divestment effective end of August 2015. The divestment process has been
completed as at Q1 2016.
Oando downstream successfully concluded tie-ins to third party terminals via a 2km Horizontal
Directional Drilled pipeline. The jetty will alleviate delays associated with product delivery into
the Apapa, reduce long term cost of operations, as well as provide possible revenue streams
from excess capacity. In 2015, the marketing arm completed upgrading of its LPG plants, the
Apapa LPG plant capacity was upgraded from 15mt/day to 30mt/day, representing a 100%
increment, while the Benin plant was upgraded to include best in industry safety standards.
For further information, please contact:
Head, Investor Relations
2, Ajose Adeogun Street,
Tel: +234 (1) 2601290-9,Ext 6396
1 July 2016
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 01/07/2016 02:14:00 Supplied by www.sharenet.co.za
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