OAO - Oando Plc - Oando earnings forecast for the fourth quarter ending

OAO - Oando Plc - Oando earnings forecast for the fourth quarter ending         
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")                                                      
OANDO EARNINGS FORECAST FOR THE FOURTH QUARTER ENDING 31 DECEMBER 2011          
In terms of the Listings Requirements and Rules governing listings on           
the Nigerian Stock Exchange, Oando is pleased to provide its earnings           
forecast for the fourth quarter ending 31 December 2011:                        
All figures in US$ `millions                                                    
                                       Q4 2011 Forecast                         
Turnover                                               813                      
Cost of sales                                (688)                              
Direct contribution                                    125                      
Operating expenses                                     (59)                     
Other operating income/charges                          4                       
Operating profit                                       70                       
Interest payable & similar charges                      (9)                     
Depreciation                            (15)                                    
Profit before tax                                       46                      
Provision for tax                       (22)                                    
Profit after tax                                        24                      
                                                                                
The earnings forecast is prepared in compliance with Nigerian Statement         
of Accounting Standards (SAS) translated to US Dollars (US$).                   
The earnings forecast reported in this announcement has neither been            
reviewed nor reported on by the auditors of the Company.                        
26 October 2011                                                                 
Sandton                                                                         
JSE Sponsor                                                                     
Macquarie First South Capital (Proprietary) Limited                             
OANDO PLC -                                                                     
EARNINGS FORECAST FOR THE FOURTH QUARTER ENDING 31 DECEMBER 2011                
KEY ASSUMPTIONS                                                                 
                                                                                
1  Exchange Rate NGN/USD  - Interbank   154                                     
2  Annual Consumer Inflation Rate       9%                                      
(year on year %)                                                              
3  Average selling price per barrel of  $110/barrel                             
  crude                                                                         
4  Average selling price per standard   $5.66/mscf                              
cubic meter (scm) of natural gas     (NGN31.15/scm)                           
5  Average selling price per litre of   ($0.42/litre)                           
  Premium Motor Spirit (PMS)           (NGN65/litre)                            
6  Average selling price per litre of   NGN156/litre                            
Automotive Gas & Oil (AGO)           (1.01/litre)                             
7  Average operating day rate for       $101,401/day                            
  swamp rigs                                                                    
8  Average efficiency rate for swamp    95%                                     
rigs                                                                          
9  Tax Rate - Company Income Tax        30%                                     
10 Tax Rate - Education Tax             2%                                      
11 Tax Rate - Petroleum Profit Tax      50%                                     
Deregulation of the downstream                                                
  sector is not expected during the                                             
  period.                                                                       
Date: 26/10/2011 11:30:01 Supplied by www.sharenet.co.za                     
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