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Unaudited financial statements for the third quarter ended 30 SEPTEMBER 2012
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 FINANCIAL STATEMENTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2012
Shareholders are advised that the following announcement for the unaudited
Interim financial statements for the nine month period ended 30 September 2012 was released on
the Nigerian Stock Exchange, 29 October, 2012.
QUOTE
The Directors are pleased to announce the unaudited interim financial statements of Oando for
the third quarter ended 30 September 2012.
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
Terminal and Logistics.
Find below our results for the period ended 30 September 2012:
Consolidated income statements
9 Months to 9 Months to Full year to
30-September-12 30-September-11 31-Dec-11
US$’000 US$’000 US$’000
3,141,228.16 2,545,776.50
Revenue 3,755,563.60
(2,814,978.04) (2,250,239.03)
Cost of sales (3,317,401.71)
326,250.11 295,537.47
Gross profit 438,161.89
31,461.95 47,585.06
Other operating income 79,747.19
(43,782.44 (36,888.75)
Selling & marketing costs (50,584.20)
(152,683.26) (157,425.48)
Administrative expenses (269,848.44)
161,246.38 148,808.30
Operating profit 197,476.43
19,947.48 35,241.41
Finance income 16,217.16
(69,089.85) (66,239.52)
Finance costs (56,502.49)
(49,142.37 (30,998.11)
Finance costs – net (40,285.33)
112,104.00 117,810.19
Profit before income tax 157,191.10
Income tax expense (52,392.47) (60,877.26) (73,506.75)
Profit for period year 59,711.53 56,932.93 83,684.35
Consolidated Statement of financial position
9 Months to 9 Months to Full year to
30-Sept-12 30-Sept-11 31-Dec-11
US$’000 US$’000 US$’000
ASSETS
Non-current assets
Property, plant and equipment 1,192,585.38 1,036,292.05 1,139,391
Intangible assets 154,136.02 153,831.75 155,613
Deferred income tax assets 32,214.98 40,394.53 68,064
Available-for-sale financial assets 6.44 6.47 8
Non current receivables 220,058.98 209,484.48 207,717
1,599,001.81 1,440,009.28 1,570,790
Current assets
Inventories 139,110.35 221,058.27 207,781
Available-for-sale financial assets 1,243.11 0 1,236
673,368
Trade and other receivables 1,173,396.13
670,155.92
Cash and cash equivalents 219,797.60 127,207.64 134,616
1,533,547.20 1,018,419.83
1,017,001
Total assets 3,132,549.01 2,458,429.11 2,587,791
EQUITY
Share capital 7,322.63 7,341.69 8,071
Share premium 318,915.42 334,385.98 364,589
Other reserves 79,572.20 128,544.50 53,490
Retained earnings 225,901.58 180,347.93 154,109
631,711.83 650,620.10 580,259
Non-controlling interest 12,724.96 8,903.04 6,824
Total equity 644,436.79 659,523.14 587,083
Non-current liabilities
Borrowings 617,291.94 634,048.60 539,296
Deferred income tax liabilities 67,501.79 20,698.81 107,982
Provisions for other liabilities and
charges 35,947.61 34,028.42 26,989
720,741.33 688,775.83 674,267
Current liabilities
Trade and other payables 670,656.31 379,998.98 502,600
Current income tax 46,261.29 47,756.81 44,210
Borrowings 1,050,453.29 683,374.35 779,631
1,767,370.89 1,110,130.14 1,326,441
Total liabilities 2,488,112.22 1,798,905.97 2,000,708
Total equity and liabilities 3,132,549.01 2,458,429.11 2,587,791
Performance synopsis
The Group’s results for the period ended 30 September 2012 is due to the following:
Turnover (Increased by 23%)
Revenue increased compared to the same period in 2011 due to:
• Increased crude oil sales;
• Relatively higher average crude prices;
• 49% increase in premium motor spirit (“PMS”) pump price from N65 to N97per litre,.due to
partial deregulation of the downstream sector of the petroleum industry; and
• Additional (US$ 14.2 million) N2.2billion revenue contribution from East Horizon Gas
Company (“EHGC”) which commenced commercial operation in January 2012.
Gross profit (Increased by 10%)
Gross profit increased compared to the same period in 2011 due:
• Increased pump price of PMS from N65 per litre to N97 per litre; and
• Additional margin was earned from newly commissioned businesses, including the Passion
rig and East Horizon Gas pipelines.
Selling and marketing expenses (Increase by 20%)
• Increased petroleum products sales at upcountry locations in 2012 compared to the same
period in 2011; and
• Increased advertisement campaigns were held during 2012 to improve sales of lubricants
and Liquefied Petroleum Gas (“LPG”), compared to 2011.
Administrative and marketing expenses (Decrease by 2%)
• Reduced costs due to effects of various cost optimization programmes embarked upon; and
• Lower operating costs in respect of Oil Mining License (“OML”) 125 compared to 2011.
Property Plant and Equipment (“PPE”) and Long-term Receivables (“LTR”) (Increase by 16 & 6%
respectively)
PPE and LTR increased compared to the same period in 2011 for the following reasons:
• Additional capital expenditure on upstream assets and EHGC’s 128 kilometre natural gas
pipeline;
• Refurbishment of the fourth rig in preparation for operational deployment; and
• Commencement of construction work on the Apapa Single Point Mooring (“SPM”) project.
Inventories (Decrease by 37%)
• Reduced importation of PMS during the period due to delay in issuance of PMS importation
licenses by the Federal Government of Nigeria.
Trade and other receivables (Increase by 78%) & Trade and other payables (Increase by 74%)
• Delay in settlement of outstanding petroleum subsidy claims and consequently increase in
PSF receivables
• Depreciation in exchange rate of naira to US$ by N4.20
• Additional trade receivables arising from commencement of operations by EHGC and the
Passion rig
Borrowings (Current Increase by 55%; Non-current Decrease by 2%)
• Delay in settlement of PSF clams affected ability to liquidate related import finance
facilities
• Depreciation of the naira relative to the same period of 2011, resulting in increase in
value of foreign-currency denominated borrowings.
• Additional borrowings were secured to finance the capital expenditure (rig upgrade, gas
pipeline construction and development of upstream assets) as stated above.
Shareholding
Oando remains one of the few companies listed on the Nigerian Stock Exchange with a
shareholder base in excess of 260,000. The shareholder range as at 30 September 2012, is as
follows:
% of
No of % of shares
Shareholders Shareholders No of shares within
Range of shareholding within range within range within range range
1 - 1,000 168,540 63.96 61,976,615 2.73
1,001 - 5,000 72,673 27.58 149,044,831 6.55
5,001 - 10,000 10,380 3.94 73,408,555 3.23
10,001 - 50,000 9,446 3.58 197,780,801 8.70
50,001 - 100,000 1,171 0.44 83,322,549 3.66
100,001 - 500,000 994 0.38 200,391,478 8.81
500,001 - 1,000,000 126 0.05 89,058,910 3.92
1,000,001 - 5,000,000 130 0.05 260,472,786 11.45
5,000,001 - 10,000,000 14 0.01 110,613,905 4.86
10,000,001 - 50,000,000 24 0.01 554,187,316 24.37
50,000,001 - 100,000,000 2 0.00 150,388,221 6.61
100,000,001 - 2,274,118,138 2 0.00 343,472,171 15.10
263,500 100 2,274,118,138 100
UNQUOTE
Sandton
29 October, 2012
JSE Sponsor
Macquarie First South Capital (Proprietary) Limited
Date: 29/10/2012 03:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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