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OANDO PLC ANNOUNCES 6 MONTHS H1 2015 RESULTS, POSTS N180 BILLION TOP LINE REVENUE
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: OANDO
ISIN: NGOANDO00002
("Oando" or the “Company")
PRESS STATEMENT: OANDO PLC ANNOUNCES 6 MONTHS H1 2015 RESULTS, POSTS
N180 BILLION TOP LINE REVENUE
Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous
energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced
unaudited results for the six months period ended 30 June, 2015, with the following highlights:
Q1 Financial Highlights:
- Turnover increased by 14%, N97.1 billion compared to N85.3 billion (Q1 2014)
- Gross Profit increased by 41%, N20.5billion compared to N14.5 billion (Q1 2014)
- Loss-Before-Tax decreased to (N19.5 billion) compared to (N59.0 million) (Q1 2014)
- Loss-After-Tax decreased to (N21 billion) compared to (N2.7 billion) (Q1 2014)
H1 Financial Highlights:
- Turnover decreased by 7%, N180 billion compared to N194.6 billion (H1 2014)
- Gross Profit decreased by 27%, N37 billion compared to N50.5 billion (H1 2014)
- Profit-Before-Tax decreased to (N38.5 billion) compared to N12.5 billion (H1 2014)
- Profit-After-Tax decreased to (N35 billion) compared to N9.0 billion (H1 2014)
Operational Highlights:
Upstream:
- Oando Energy Resources (OER) increased 2P net reserves by 82% from 230.6 MMboe
to 420.3 MMboe.
- Growth in average production from 4,531 boe/day in H1 2014 to 55,399 boe/day in H1,
2015.
- Oando Energy Services celebrated 5 years of continuous operations without a Lost Time
Incident (LTI) on “OES Teamwork” swamp drilling rig.
- OES celebrated 3 years of continuous operations without a Lost Time Incident (LTI) on
“OES Passion” swamp drilling rig.
Midstream:
- Oando Gas and Power successfully completed the first segment of the Greater Lagos
Pipeline extension.
Downstream
- Oando Plc signs agreement to sell 60% stake in Oando Downstream to Helios/Vitol JV for
a total consideration of $461 Million.
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “Our Nation is
experiencing Change, as witnessed from the tone of redirection in the oil and gas industry, which
will lead to improved accountability and operational efficiencies in our sector. Our business is also
experiencing this Change with the sale of 60% of our Downstream business in line with our
strategic goals of placing our fundamental growth expectations on the Upstream, the cash
proceeds of the divestment will be utilized towards debt reduction to shore up our balance sheet
in these challenging times. We are encouraged by our recent success in the Upstream which has
seen an 11 fold increase in production and 82% increase in 2P reserves as well as a substantial
reduction in our acquisition debt. Our strategic focus is to increase operational efficiencies, whilst
creating the necessary platform to be the partner of choice to the IOC’s as they continue their
divestment programmes”.
Operational Update
Oando Energy Resources (OER) completed its 2014 year-end summary of reserves where 2P
net reserves increased by 82% from 230.6 mmboe to 420.3 mmboe, largely due to the recognition
of Reserves of all producible oil and gas volumes associated with the operator provided work
program, up to the economic limit of the producing fields.
OER’s total production was 10 million barrels of oil equivalent (mmboe) in the 6 months, H1 2015
period compared with 0.8 mmboe in the same period of 2014. This increase is as a result of the
43,600boepd additional production from OMLs 60 – 63 which was acquired in H2, 2014; a 406
bbls/day production increase from the newly producing Qua-Ibo field; a 68% increase of
production from the Ebendo field from 940 bbls/day to 1,580 bbls/day, largely due to the
uncapping of the evacuation capacity as provided by the alternate 45,000 bbl/day, 52 Km Umugini
pipeline; as well as an 8% reduction in the crude oil, lost through theft and pipeline vandalization.
Oando Energy Services (OES) achieved five and three years of continuous operations with a Zero
Lost Time Incident (LTI) on two of its four rigs, “OES Teamwork” and “OES Passion” respectively.
Further demonstrating our commitment to world class operating standards, with the proactive use
of our EHSSQ and operational processes. OES Passion resumed its 24 month drilling contract
with an IOC.
Oando Gas & Power (OGP) completed the first segment of the Greater Lagos Phase 4 pipeline
project which runs from Ijora to Bonny Camp in Lagos state, thereby extending our natural gas
distribution network to 135 Km. Segment 1 is complete and ready to supply gas to the customers
already connected to the network
Oando Downstream executed an agreement to divest 60% to Helios/Vitol JV for a total
consideration of $461 Million. We remain committed to expanding our footprint globally and will
utilise our partnership with Vitol accordingly.
For further information, please contact:
Tokunboh Akindele
Head, Investor Relations
2, Ajose Adeogun Street,
Victoria Island,
Lagos,Nigeria.
Tel: +234 (1) 2601290-9,Ext 6396
aakindele@oandoplc.com
Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)
26 October 2015
Date: 26/10/2015 10:44:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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