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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)
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July 28, 2011
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