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OANDO PLC - Press publication: Oando PLC Announces YTD June 2017 Results, Posts N4.6 Billion Profit-After-Tax

Release Date: 31/07/2017 15:45:00      Code(s): OAO     
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
(?Oando? or the ?Company?)

Oando PLC Announces YTD June 2017 Results, Posts N4.6 Billion Profit-After-Tax

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
unaudited results for the six months period ended 30 June, 2017, with the following highlights:

Financial Highlights:

Turnover increased by 26%, N267.1 billion compared to N212.3 billion (H1 2016)

Gross Profit increased by 76%, N33.4 billion compared to N19 billion (H1 2016)

Profit-After-Tax increased by 117%, N4.6 billion compared to (N26.9 billion) (H1 2016)

Operational Highlights:


Production in the first half of 2017 decreased by 20% to 7.2 MMboe (average 39,950 boe/day)
compared to 8.2 MMboe (average 44,892 boe/day) in the first half of 2016

Realized N3.2 billion from the optimization of the crude oil hedge program which will be used to
reduce corporate facility debt obligations.


72% improvement in revenues, from N126.6 billion in H1 2016 to N217.4 billion in H1 2017

Exported over 7Mb of Crude Oil, and imported 600,000 MT of refined petroleum products in the first
half of 2017. Representing a 20% and 96% increase respectively.

The first half of 2017 has witnessed the country?s production levels steadily recovering to normalcy.
This has largely been as a result of the containment of the Niger Delta unrest, and the more recent
resumption of activity on the Trans Forcados Pipeline. There is optimism around the approval of the
Petroleum Industry Governance and Institutional Framework Bill (PIGB), which should result in a more
efficiently regulated sector and a conducive business environment for industry players.

Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: ?With security concerns in
the Niger Delta receding, Nigeria?s economic recovery has been buoyed by a boost in oil output, while
the legislative approval of certain segments of the Petroleum Industry Bill (PIB) provides greater long-
term policy certainty for the sector. Our returns underline our continued successful foray into the
Upstream. Within the prevalent crude pricing regime, we remain committed to optimizing our overall
production base, seeking unique profit-driven opportunities to further partner with IOCs, while firming
up our balance sheet to provide greater shareholder value.?
Operational Update

Oando Energy Resources (OER) recorded an average production of 39,950 boe/day compared to
44,892 boe/day in the first half of 2016. This reduction was primarily due to significant reductions in
gas production and delivery caused by a ruptured Gas Transmission System (GTS-4) gas line which
supplies our contractual gas to the Nigerian Liquefied Natural Gas Limited (NLNG). Also, the Trans
Forcados pipeline continued to suffer downtime in the first 5 months of the year and due to repairs
and planned maintenance activities which resulted in reduced production from Ebendo.

In June 2017, the company successfully realized N3.2 billion in net cash from the crystallization of the
Corporate Facility hedges (1,590 bbls/day) via early settlement with hedging counterparties - N3.5
billion relating to settlement of hedges offset against N336.5 million representing the cost of the
planned reset, which will be utilized in paying down our existing debt obligations. OER is also in the
process of entering a new hedge agreement effective July 2017.

In the second quarter of 2017, the company successfully completed the sale of its interests in OMLs
125 and 134 to Nigerian Agip Exploration Limited ?NAE? for a profit of N4.6 billion.

Oando Trading (OTD) witnessed a 40% growth in traded volumes and a commendable 147%
increase in turnover to N217.5 billion compared to N88.1billion the comparative period of 2016. Our
trading business lifted volumes exceeding 7.5mmbbls of crude and imported 610,000MT of refined
petroleum products.

The Structured Trade Finance lines in the business increased by N76.5 billion to N214.1 billion in
total, from a total of 5 International and African banks. This allows the company to achieve greater
trading capacity and in turn more volumes.

For further information, please contact:

Ayotola Jagun
Chief Compliance Officer & Company Secretary
2, Ajose Adeogun Street,
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext: 6159
Olufemi Adeyemo
Chief Financial Officer
2, Ajose Adeogun Street,
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400,Ext 6391

31 July 2017
JSE Limited Sponsor: Sasfin Capita (a member of the Sasfin Group)

Date: 31/07/2017 03:45:00 Supplied by www.sharenet.co.za                     
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