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Oando PLC Announces YTD September 2018 Results, Posts N10.4 Billion Profit-After-Tax
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
(“the Company”)
Oando PLC Announces YTD September 2018 Results, Posts N10.4 Billion Profit-
After-Tax
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,
has on 30 October 2018 announced unaudited results for the nine months period ended
September 30, 2018.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
“Today’s positive result is further evidence of the progress made by Oando in 2018 driven
by our continued focus on execution and operational efficiency, supported by buoyant
commodity prices. The outlook for the remainder of the year is positive and we remain
committed to delivering on our value-based strategy towards improving our liquidity by
reducing our gearing, improving our profitability by increasing production, and achieving
growth via strategic alliances”
RESULTS HIGHLIGHTS
Strong top and bottom line performance
- Turnover increased by 32%, N505.1 billion compared to N383.5 billion (YTD
September 2017), driven by higher commodity prices
- Profit-After-Tax increased by 46%, N10.4 billion compared to N7.1 billion (YTD
September 2017)
Optimized balance sheet
Total Group Borrowings decreased by 4%, N227.2 billion compared to N237.4 billion
(FYE 2017)
Operational efficiency combined with favourable environment
- Brent prices averaged $72.25 per barrel, resulting in a 45% increase in realized crude
selling price compared to the same period in 2017. Performance was further buoyed
by sale price increases of 6% for NGL and 31% for our natural gas deliveries.
- Overall working interest production in the period increased to 40,039 boe/day,
compared with 39,844 boe/day in the same period in 2017.
- Over 10 million barrels of Crude Oil traded and 445,483 MT of refined petroleum
products delivered, compared to over 11 million barrels of crude oil traded and
795,381 MT of refined products delivered in the same period of 2017
Financial Overview
N Million (unless otherwise stated) YTD Sept 2018 YTD Sept 2017 %
Change
Revenue 505,085 383,491 32%
Gross Profit 77,546 71,206 9%
Profit-After-Tax 10,396 7,125 46%
Total Borrowings 227,192 237,442* -4%
Average Realized Oil Price (US$/bbl) 71.42 49.42 45%
Average Realized Gas Price (US$/mcf) 1.76 1.34 31%
Average Realized NGL Price (US$/boe) 10.09 9.51 6%
*FYE 2017
OPERATIONS REVIEW
Upstream:
Production for the first nine months ended 30 September 2018
YTD September YTD % Change
2018 September
2017
Crude Oil (bbls/day) 16,850 15,334 10%
NGLs (boe/day 3,181 3,259 -2%
Natural Gas (mcf/day) 120,047 127,508 -6%
Total (boe/day) 40,039 39,844 1%
During the nine months ended September 30, 2018, production was slightly above prior
year at 40,039 boe/day, compared with 39,844 boe/day in the same period of 2017.
Capital expenditure of $59.3 million (N21.6 billion) were expended in the first nine months
of 2018 compared to $22.6 million (N6.9 billion) in same period in 2017. The capital
expenditure incurred consists of $51.1 million (N18.6 billion) at OMLs 60 to 63, $3.6
million (N1.3 billion) at Qua Ibo and $4.7 million (N1.7 billion) on other exploration assets.
Downstream:
Traded volumes for the first nine months ended 30 September 2018
Product Traded Volumes
Crude Oil (bbls) 10,391,806
Refined Products (MT) 445,483
In the past nine months, Oando Trading has traded over 10 million barrels of crude oil
under various contracts with the Nigerian National Petroleum Corporation (NNPC) as well
as delivering 445,483 MT of refined products, acting as a key source of liquidity to the
Oando Group. Oando Trading continues to solidify its relationships with leading
international and local banks, maintaining over $700 million of immediately available
structured trade finance facilities.
FINANCE REVIEW
Revenue
Revenue for the period was N505.1 billion, an increase of 32% compared to the same
period in 2017 (N383.5 billion). This was primarily driven by an increase in commodity
prices.
In the nine months to September 30, 2018, gross sales price for oil increased by 45% to
$71.42/ bbl from $49.42/ bbl in the same period in 2017. Sale price for natural gas and
NGL also increased by 31% and 6% respectively.
Gross Profit
Gross Profit for the first nine months was N77.6 billion, an increase of 9% compared to
the same period in 2017 (N71.2 billion). The increase is primarily driven by higher revenue
as a result of higher commodity prices.
Profit-After-Tax
Profit-After-Tax for the period was N10.4 billion, an increase of 46% compared to the
same period in 2017 (N7.1 billion).
Borrowings
Total Group Borrowings for the period stands at N227.2 billion, a 4% decrease from FYE
2017 (N237.4 billion) whilst specifically in our upstream subsidiary, borrowings reduced
by 16% to $271.7 million compared to $324.6 million in FYE 2017. Since FYE 2014, our
total Group borrowing have reduced by 52% from N473.3 billion while borrowing for or
our upstream subsidiary has reduced by 66% from $801.6 million.
LOOK AHEAD
Brent continues to trade at over $75 per barrel at the start of the fourth quarter, supported
by inventory reductions and geopolitical tensions. Our upstream business is well
positioned to take advantage through production growth via investment in targeted
profitable projects, whilst maintaining fiscal prudence.
Our Trading business will continue to focus on developing key supply mechanisms in
order to facilitate its expansion of trading structures across the face of Africa as well as
solidifying our position in Nigeria
The Group as a whole continues to implement programs to improve operational efficiency
and maintain capital discipline to assure profitability regardless of the market context.
Ends.
For further information, please contact:
Ayotola Jagun
Company Secretary
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6159
ajagun@oandoplc.com
Segun Awodele
Head, Investor Relations
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6204
sawodele@oandoplc.com
For: Oando PLC
Ayotola Jagun
Chief Compliance Officer and Company Secretary
Lagos
31 October 2018
Sponsor: Sasfin Capital (a member of the Sasfin group)
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