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OAO - Oando Plc - Unaudited results for the period ended 30 September 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 September 2011
Highlights
- Turnover of US$2,545.78 million
- Gross profit of US$322.12 million
- Operating profit of US$153.73 million
- Profit after tax of US$65.98 million
- Attributable profit after tax of US$65.55 million
- Earnings per share of 2.90 cents
- Increased gross margin contribution by the gas and power division
- 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 Main Board of the JSE Limited ("JSE"), reports
unaudited profit after tax ("PAT") for the period ended 30 September 2011 of
US$65.98 million.
Statement of comprehensive income analysis
The Group`s turnover and profit before tax increased by 36% and 34%
respectively, when compared with the same period in 2010. The following are
key highlights of the period`s performance:
Turnover
Turnover increased by 36% compared to the prior corresponding period in 2010.
This was attributable to the following:
- 12.15MW Akute Power Plant being operated for nine months in 2011
compared to seven months during the prior comparitive period in
2010;
- Additional customers being connected to Gaslink pipeline network;
- Additional revenue arising from favourable oil prices
(approximately 24%); and
- Increased petroleum products imports as a result of seamless
operation of the sovereign debt scheme for fuel subsidy.
Gross margin
An increase in gross margin by 10% relative to the prior comparative period
in 2010, as a result of:
- Significant reduction in payment cycles for products imported on
behalf of the Government of Nigeria post the implementation of the
Sovereign Debt Note of the Government of Nigeria; and
- Increased contribution from the higher margin businesses (Midstream
and Upstream).
Administrative expenses
Administrative expenses increased by 11% to the prior comparative period in
2010, due to:
- Additional operating costs (including depreciation) incurred on new
businesses (rig and independent power plant);and
- Higher inflationary pressures on major cost items including wages.
Selling and marketing expenses
Selling and marketing expenses increased by 4% to the prior comparative
period in 2010, due to higher volumes of petroleum products transported to
upcountry locations during 2011.
Finance costs
Finance costs decreased by 14% to the prior comparative period in 2010, due
to:
- The reduced debt burden as a result of the pay-down from the
proceeds of the 2010 rights issue; and
- The impact of a 400bps reduction of the medium term loan coupon as
a result of restructuring the loan.
Statement of financial position analysis
Property, plant and equipment
Property, plant and equipment increased by 1% to the prior comparative period
in 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; and
- The revaluation surplus arising from the triennial revaluation of
property, plant and equipment. The revaluation was carried out in
December 2010.
Long term receivables
Long term receivable (cost of gas distribution pipeline assets) increased by
32% to the prior comparative period in 2010, due to additional capital
expenditure incurred on the East Horizon`s Gas pipeline project as well as
new customers` connection to the Greater Lagos distribution network.
Inventory
Inventory for the period increased by 47% to the prior comparative period in
2010, due to more cargoes of imported petroleum products being received
towards the end of September 2011, by the Supply and Trading division.
Trade and other receivables
Trade and other receivable increased by 26% to the prior comparative period.
This is attributable to additional receivables generated from new businesses
(power plant, rig).
Prospects
Oando expects that the Federal legislature will pass the Petroleum Industry
Bill ("PIB") in the near future. As a local company with a diversified
portfolio, the passing of the PIB is expected to influence the availability
of viable opportunities. The Group has positioned itself to optimise the
additional value to be created by the proposed improvements in the Petroleum
Industry`s policy framework.
The upstream assets portfolio is undergoing a restructuring to enhance the
portfolio`s efficiency and ability to mobilise the required capital for
growth. It is expected that these structural changes will be concluded before
the end of 2011. The development of OML 90 is ongoing, while additional wells
are to be drilled in OML 56 and 125. The strategy to acquire producing or
near term assets is still being pursued. The proposed activities are intended
to improve the contribution by the upstream business to the Group`s
profitability in the future.
The Group will continue to connect new customers to the 100 kilometre Greater
Lagos gas distribution network until the available capacity is exhausted.
Construction work at the Eastern Horizon Company`s 128 kilometre pipeline
project has been completed and is undergoing quality control testing pending
commissioning. The project is expected to commence revenue generation within
the next few weeks. The Group is also pursuing captive power plant mandates
for which bids had been submitted earlier this year.
The Federal Government of Nigeria has reopened discussions with stakeholders
about deregulation of the downstream sector of the petroleum industry. The
Marketing and Supply & Trading Divisions have strategically positioned
themselves to take advantage of the opportunities associated with
deregulation. The Supply & Trading division will continue to consolidate its
foray into the West African markets. The Company shall continue to improve
and capitalise on operational efficiencies of the downstream marketing
businesses.
The Energy Services business will complete ongoing refurbishment of the third
rig which is expected to be deployed into operational use before the end of
the 2011 financial year.
In light of the above, the Group is poised to deliver enviable returns to the
Company`s stakeholders.
Condensed consolidated statements of financial position as at 30 September
2011
30 September 2011 31 December 2010
ASSETS US$`million US$`million
Non-current assets
Property Plant & Equipment 1,058.93 1,043.92
Intangible Assets 153.83 164.22
Available for sale investment 0.01 0.01
Deferred income tax assets 25.14 75.88
Long Term Receivables 211.13 160.43
1,449.04 1,444.46
Current assets
Inventories 221.07 150.54
Trade & Other Receivables 662.08 523.63
Cash & Cash Equivalents 127.21 81.91
Total assets 2,459.40 2,200.54
Equity
Capital & Reserves attributable to
equity holders
Share Capital 7.34 6.59
Share Premium 318.25 361.52
Other Reserves 109.58 77.06
Retained Earnings 203.11 180.50
638.28 625.67
Minority Interest 8.90 6.81
Total equity 647.18 632.48
Liabilities
Non-Current Liabilities
Borrowing 620.27 503.11
Deferred income tax liabilities 42.82 104.60
Provisions for liabilities and 34.03 21.85
charges
697.12 629.56
Current Liabilities
Trade & Other Payables 404.34 423.74
Current Income Tax Liabilities 27.39 37.16
Borrowings 683.37 477.60
Total Liabilities 1,812.22 1,568.06
Total Equity & Liabilities 2,459,40 2,200.54
Consolidated statement of comprehensive Income for the period ended 30
September 2011
30 September 2011 30 September 2010
US$`million US$`million
Sales 2,545.78 1,872.63
Cost of Sales (2,223.65) (1,578.52)
Gross Profit 322.13 294.11
Selling & Marketing Costs (36.89) (35.32)
Administrative Expenses (179.09) (161.40)
Other Operating Income 47.59 29.42
Operating Profit 153.73 126.81
Net Finance Costs (28.05) (32.69)
Profit Before Taxation 125.68 94.12
Income Tax Expense (59.70) (43.08)
Profit After Expense 65.98 51.04
Attributable to:
Non-Controlling Shareholders 65.55 50.72
Equity Holders of the Company 0.43 0.32
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 several
interests in OML 56, OML 90, OML 125 and OML 134 as well as 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 100
kilometers of Greater Lagos natural gas distribution franchise and has
connected over one hundred industrial customers. EHGC is constructing
a 128 kilometers natural gas pipeline network to supply natural gas to
United Cement Company ("UNICEM") and other customers at Calabar and
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 nine months
period ended 30 September 2011:
Exploration Marketing Supply & Refining &
& Trading Terminals
Production
US$`million US$`million US$`million US$`million
Gross segment revenue 138.13 892.75 1,661.67 -
Inter-segment revenue - (2.32) (283.17) -
Revenue 138.13 890.43 1,378.50 -
Operating 79.66 28.40 15.55 -
profit/(loss)
Finance costs - net (15.70) 0.17 (1.04) -
Profit before income 63.95 28.57 14.51 -
tax
Income tax expenses (42.05) (9.11) (1.84) -
Profit for the period 21.90 19.46 12.67 -
Gas & power Energy Corporate & Total
Services Others
US$`million US$`million US$`million US$`million
Gross segment revenue 71.95 66.76 44.38 2,875.64
Inter-segment revenue - - (44.38) (329.87)
Revenue 71.95 66.76 - 2,545.77
Operating 15.54 20.53 (5.94) 153.73
profit/(loss)
Finance income/(costs) 1.83 (20.90) 7.60 (28.05)
- net
Profit before income 17.37 (0.37) 1.66 125.68
tax
Income tax expenses (5.27) 0.12 (1.54) (59.70)
Profit for the year 12.10 (0.25) 0.12 65.98
Below is the Group performance on a divisional business basis for the nine
months period ended 30 September 2010:
Exploration Marketing Supply & Refining &
& Trading Terminals
Production
US$`million US$`million US$`million US$`million
Gross segment revenue 98.14 846.79 1,506.94 -
Inter-segment revenue - - (734.28) -
Revenue 98.14 846.79 772.66 -
Operating 51.05 28.53 16.64 -
profit/(loss)
Finance costs - net (22.58) (4.90) 10.41 -
Profit before income 28.47 23.63 27.05
tax
Income tax expenses (22.82) (7.55) (5.23)
Profit for the year 16.08 21.82
5.65
Gas & power Energy Corporate & Total
Services Others
US$`million US$`million US$`million US$`million
Gross segment revenue 85.15 69.89 - 2,606.91
Inter-segment revenue (734.28)
Revenue 85.15 69.89 - 1,872.63
Operating profit/(loss) 9.74 28.96 (8.11) 126.81
Finance costs - net 2.71 (23.66) 5.33 (32.69)
Profit before income 12. 45 5.30 (2.78) 94.12
tax
Income tax expenses (3.40) (1.73) (2.00) (43.08)
Profit for the year 3.57 51.04
9.05 (5.13)
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER
2011
Share Share Other Cumulative
Capital Premium reserves translation
adjustment
US$million US$million US$million US$million
Balance as at 31 December 6.59 361.52 77.07 -
2010
Retained profit for the - - - -
period
Bonus issue of shares 1.50 - - -
Dividend paid - - - -
Exchange difference (0.75) (43.27) 32.51 -
Reversal of revaluation - - - -
surplus
Deferred tax on - - - -
revaluation surplus
Share issue/acquisition - - - -
Cost
Balance as at 30 7.34 318.25 109.58
September 2011
Retained Minority Total
earnings interest equity
US$million US$million US$million
Balance as at 31 December 2010 180.50 6.81 632.49
Retained profit for the period 65.55 0.43 65.98
Bonus issue of shares (1.5) - 0
Dividend declared/paid (35.89) - (35.89)
Exchange Difference (5.55) 1.66 (15.40)
Reversal of revaluation surplus - - -
Deferred tax on revaluation surplus - - -
Share Issue/acquisition Cost - - -
Balance as at 30 September 2011 203.11 8.90 647.18
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER`S EQUITY ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER
2010
Share Share Revaluation Cumulative
Capital Premium reserve translation
adjustment
US$million US$million US$million US$million
Balance as at 31 3.54 231.66 39.84 (39.12)
December 2009
Retained profit for the - - - -
period
Bonus issue of shares - - - -
Dividend paid - - - -
Exchange difference 1.5 (33.11) 8.47 39.12
Reversal of revaluation - - - -
surplus
Deferred tax on - - - -
revaluation surplus
Share Issue/acquisition 1.02 130.44 - (0.13)
Cost
Balance as at 30 6.06 328.99 48.31 0
September 2010
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 50.72 0.32 51.04
Bonus issue of shares - - -
Dividend paid (45.02) - (45.02)
Exchange Difference - 0.10 16.08
Reversal of revaluation surplus - - -
Deferred tax on revaluation surplus - - -
Share Issue/acquisition Cost - 131.46
Balance as at 30 September 2010 130.26 6.76 520.39
Notes to reviewed results for the nine months ended 30 September 2011
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
2000 consequent to the sale of the 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% of 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
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 periods 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 September 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 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
statement of comprehensive income, 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 statement of comprehensive income as
part of the gain or loss on sale.
3. Earnings Per Share
Basic earnings per share("EPS") are 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 September 30 September
2011 2010
Profit attributable to equity holders 65.55 50.72
of the Company (US$`million)
Weighted average number of shares in 2,262.71 1,659.32
issue (millions)
Basic EPS (cents) 2.90 3.06
Diluted
Profit attributable to equity holders 65.55 3.06
of the Company (US$`million)
Weighted average number of shares in 2,262.71 1,659.32
issue (US$millions)
Adjustment for bonus issues
Weighted average number of shares for 2,262.17 1,659.32
diluted EPS (US$millions)
Diluted EPS (cents) 2.90 3.06
Headline Earnings Per Share 2.90 3.06
("HEPS")(cents)
Profit attributable to equity holders 65.55 50.72
of the Company (US$`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 0 0
affiliate companies
Tax on sales of investment in 0 0
affiliate companies
HEPS attributable to earnings basis 2.90 3.06
(cents)
HEPS attributable to diluted earnings 2.90 3.06
basis (cents)
Net assets per share (cents) 108.71 123.24
Tangible assets per share (cents) 46.77 55.39
4. Independent audit by the auditors
The condensed consolidated unaudited results for the period ended 30
September 2011 has not been reviewed or reported on by 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 ordinary shares of 2,274,118,138 include the
bonus issue of 452,542,314 ordinary shares 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 September 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
25 October 2011
Company Secretary: Ms. Ayotola Jagun
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
25 October 2011
JSE Sponsor
Macquarie First South Capital (Pty) Limited, The Place, 1 Sandton Drive,
South Wing, Sandton, Johannesburg, 2196, South Africa
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