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OAO - Oando PLC - Audited financial statements for the year ended 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" or the "Group")
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011
Shareholders are advised that the following announcement for the audited
financial statements for the year ended 31 December 2011, which has been
prepared in terms of the Nigerian Accounting Standards and the Companies and
Allied Matters Act, 2004, was released on the Nigerian Stock Exchange today,
21 May, 2012.
The audited financial statements prepared in terms of International
Financial
Reporting Standards will be announced in due course.
QUOTE
The Directors are pleased to announce the audited financial statements of
Oando for the year ended 31 December 2011.
The Group retained the existing structure of six divisions in line with the
nature of its businesses. The divisions consist of the following: Oando
Marketing, Oando Supply and Trading, Oando Energy Services, Oando Gas and
Power, Oando Exploration and Production and Oando Refinery and Terminals.
Herewith the highlights of our results for the year ended 31 December 2011:
Profit and Loss Information
2011 2010 % Variance
Inc/(Dec)
N`000 N`000 %
Turnover 586,619,034 378,925,430 55
Gross profit 68,440,887 54,128,039 26
Selling & Marketing expenses 7,901,252 7,220,296 9
Administrative expenses 42,150,327 22,484,703 87
Interest received 2,533,121 1,468,674 72
Other operating income 12,456,510 4,174,589 198
Interest payable 8,825,689 5,747,458 54
Profit before taxation 24,553,250 24,318,845 1
Exceptional charges 9,624,853 - 100
Taxation 11,481,754 9,943,879 15
Profit after taxation 3,446,643 14,374,966 (76)
Attributable to equity holders 3,666,730 14,379,066 (74)
Minority Interests (220,067) (4,100) 5,268
Basic earnings per 50K share 162 829 (81)
(Kobo)
Adjusted earnings per 50K 161 -
share (Kobo)
No. of shares No. of
shares
No of 50k shares issued and 2,274,118,138 1,810,169,256 26
fully paid
Balance Sheet Information
2011 2010 % Variance
Inc/(Dec)
N`000 N`000 %
Fixed assets 175,455,217 156,285,721 12
Long-term receivable 34,426,127 25,492,756 35
Inventories 32,458,405 22,386,418 45
Trade debtors and other 106,219,743 80,167,578 32
debtors
Cash & bank balances 21,033,529 12,187,072 73
Trade creditors and accruals 74,017,827 60,467,691 22
Short-term borrowings 119,993,236 71,020,640 69
Working capital (46,275,717) (23,129,187) 100
Long-term borrowings 85,591,771 76,348,834 12
Share capital and reserves 92,427,779 93,049,534 (1)
Performance synopsis
Oando`s performance during the year ended 31 December, 2011 is mainly
attributable to the following:
Turnover (increased by 55%)
Increase in volume of refined petroleum products (PMS and AGO) sold during
the year compared to 2010.
- Higher average crude oil prices in 2011 compared to 2010.
- 12.15MW Akute Power Plant operated for twelve months in 2011 compared to
nine months during the same period of 2010.
- New customers were connected to Gaslink pipeline network.
- One of our rigs, Teamwork, operated throughout the year in 2011 compared
to seven months in 2010.
Gross profit (increased by 26%)
Gross margin increases occurred due to increase in sales, however, the
growth in gross margin was lower than that of turnover because of the
significant reduction in gross margins on imported petroleum products due to
product gluts and demurrage.
Administrative and selling expenses (increased by 87%)
- Lower costs were recovered in OML 125 compared to prior year. This
factor coupled with depreciation of the Naira by about N7 resulted in
about 100% increase in administrative expenses for OML 125.
- Exchange loss on foreign currency balances increased from N1.1 billion
in 2010 to about N4.7 billion during the year.
- Additional operating costs (including depreciation) incurred on new
businesses (rig and independent power plant).
- Higher volume petroleum products were sold at upcountry locations
thereby incurring more selling expenses compared to the same period in
2010.
Other operating income (increased by 198%)
- Increased exchange gain (N8 billion) was earned during the year due to
increase in exchange rate of Naira compared (N1.3 billion) recorded in
2010.
- Increased in project management income was recorded by the Gas and
Power Division compared to 2010.
Interest payable (increased by 54%)
- General increase in borrowing costs from an average of about 14% to 18%
- Additional finance costs on newly operational assets. (For instance,
interests costs were charged to the profit and loss account for twelve
months in 2011 on the second rig and Akute Power Plant whereas it was
capitalized for some months in 2010 before commencing operation).
- Depreciation of the Naira by about 5% against the US Dollar caused
increase in carrying amounts of foreign borrowings
- Increased working capital requirement came with additional costs
Exceptional charges (increased by 100%)
- Cost incurred on some fund raising activities like Global Depository
Receipt (GDR) and prospecting costs for acquisition of upstream asset
were written off in 2011. Similar expenses were not incurred in 2010.
- Termination fees on existing technical and management services
agreements
- Impairment charges on one of the rigs (named OES Professionalism)
Fixed Assets and Long Term Receivables (increased by 12% and 35%
respectively)
- Additional capital expenditure on OML 90, OML 56, East Horizon Gas
Company`s 128 kilometre natural gas pipeline and the refurbishment of
the third rig in preparation for operational uses.
- Commencement of construction work on new projects, e.g, Apapa Single
Point Mooring(SPM)
Inventories (increased by 45%)
- More petroleum products were received towards the end of 2011 compared
to the same period of 2010
- Higher average crude oil prices
Trade debtors and other debtors (increased by 32%)
- Additional receivables from new businesses (power plant, OES Teamwork
which was in operation for a longer period in 2011 when compared to the
corresponding period in 2010.
- Increase in trading activities in 2011 compared to 2010
Cash and bank (increased by 73%)
- Improvement in operating cash flows.
Trade creditors and accruals (increased by 22%)
- Improvement in payment to creditors, which was facilitated by receipts
from debtors and cash generated from operations.
Relatively higher inventories compared to the same period in 2010
Short-term Borrowings and Long-term Borrowings (increased by 69% and 12%
respectively)
- Depreciation of the Naira in, 2011 relative to the same period of 2010
resulted in increase in foreign-currency denominated short term
borrowings.
- Additional borrowings were secured to finance the capital expenditure
(rig upgrade, gas pipeline construction and development of upstream
assets)
- Additional funding requirements for import finance due to increase
costs and volume of petroleum products
Capital and Reserves (increased by 1%)
- Reduction in equity occurred due to lower profit after taxation
compared to 2010 as a result of the exceptional charges earlier
described.
Shareholding
We remain one of the few companies listed with shareholders base in excess
of 260,000. As of 31 December 2011, the range of shareholdings of the
company is as shown below:
Range No. of Holders Units Units%
Holders %
1 - 1000 168,436 63.96 62,026,381 3.69
1001 - 5000 73,118 27.76 149,867,546 6.60
5001 - 10000 10,376 3.94 73,186,851 3.23
10001 - 50000 9,172 3.48 190,197,969 7.65
50001 - 100000 1,068 0.41 75,619,577 2.97
100001 - 500000 923 0.35 186,875,913 6.36
500001 - 1000000 111 0.04 78,941,581 3.76
1000001 - 5000000 105 0.04 220,986,752 9.79
5000001 - 10000000 19 0.01 140,994,616 5.06
10000001 - 23 0.01 488,425,846 17.94
50000000
50000001 - 1 0.00 59,889,556 32.95
100000000
100000001 - 3 0.00 547,105,550
2274118138
263355 100 2,274,118,138 100.00
QUOTE
21 May 2012
Sandton
JSE Sponsor
Macquarie First South Capital (Proprietary) Limited
Date: 21/05/2012 16:00:02 Supplied by www.sharenet.co.za
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