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Oando PLC Announces H1 2019 Results, Posts N7.2 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 H1 2019 Results, Posts N7.2 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, today announced
unaudited results for the six months period ended June 30, 2019.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
“Half year 2019 was a positive period for us as we achieved Strong top and Bottom line earnings
despite our overall performance being tempered by a one-off N14 billion charge. Our crude oil
and natural gas production grew by 15% and 8% respectively compared to the similar period last
year while we also achieved a significant reduction in our Reserve Based Lending facility to
approximately $0.4 million from $450 million at inception- a 99% reduction. We also concluded
the divestment of our residual interest in Axxela for US$41.5 million, in line with our strategy of
divesting from non-strategic assets and remain on track to deliver on all our initiatives for the year.
Looking ahead, our focus will be on achieving further growth and profitability by delivering on our
production growth initiatives through strategic alliances and partnerships.”
RESULTS HIGHLIGHTS
8% Production increase, 40,873boe/day compared to 37,814boe/day (H1 2018)
6% Turnover increase, N315.4 billion compared to N297.3 billion (H1 2018)
16% Profit-After-Tax decrease, N7.2 billion compared to N8.5 billion (H1 2018)
5% Total Group Borrowings decrease, N200.7 billion compared to N210.9 billion (FYE 2018)
Production for the six months ended 30 June 2019:
H1 2019 H1 2018 % Change
Crude Oil (bbls/day) 16,876 14,675 15%
NGLs (boe/day 2,575 3,328 -7%
Natural Gas (mcf/day) 128,533 118,866 8%
Total (boe/day) 40,873 37,814 8%
During the six months ended June 30, 2019, production increased by 8% at 40,873boe/day,
compared with 37,814boe/day in the same period of 2018. Oil production in particular increased
by 15% from 14,675bbls/day in H1 2018 to 16,876bbls/day in H1 2019, whilst natural gas
production increased by 8% from 118,866mcf/day in H1 2018 to 128,533 mcf/day in H1 2019.
Capital expenditure of $62.3 million (N22.5 billion) was incurred in the six months of 2019
compared to $24.7 million (N8.9 billion) in same period in 2018. This consists of $59.7 million
(N21.6 billion) at OMLs 60 to 63, $1.9 million (N686.2 million) at OML 56, $0.04 million (N14 4
million) at OML 13, and $0.8 million (N288.9 million) on other assets.
Downstream:
Traded volumes for the six months ended 30 June 2019
Volumes H1 2019 H1 2018 % Change
Crude Oil (bbls) 7,285,294 6,595,444 10%
Refined Products (MT) 228,970 195,497 17%
In H1 2019, Oando Trading traded approximately 7.3 million barrels of crude oil under various
contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 228,970 MT of
refined products.
FINANCE REVIEW
N Million (unless otherwise stated) H1 2019 H1 2018 % Change
Revenue 315,409 297,308 6%
Operating Profit 1,168 13,843 -92%
Profit-After-Tax 7,169 8,493 -16%
Total Borrowings 200,698 210,901 -5%
Average Realized Oil Price (US$/bbl) 65.02 68.30 -5%
Borrowings
Total Group Borrowings for the period stood at N200.7 billion, a 5% decrease from FYE 2018
(N210.9 billion) whilst in our upstream specifically, our borrowings reduced by 13% to $221.3
million compared to $255.6 million in FYE 2018. Since FYE 2014, the Group has reduced its debt
by 58% from N473.3 billion while our upstream borrowings have reduced by approximately 72%
from $801.6 million in 2014.
LOOK AHEAD
Oil prices have averaged $65 per barrel for most of 2019 and we shall continue employing price
protection strategy by hedging our production.
Our focus will be largely on driving profitability via growth in our upstream business where we will
pursue production growth initiatives through strategic alliances, whilst ensuring operational
efficiency and fiscal prudence. We will also continue to work with our partners to achieve cost
optimization on our Joint Venture operations, ensuring the gains from higher revenues are not
lost to increasing operating costs.
For further information, please contact:
Ayotola Jagun
Company Secretary
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6159
ajagun@oandoplc.com
Segun Awodele
Head, Investor Relations
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6204
sawodele@oandoplc.com
For: Oando PLC
Ayotola Jagun
Chief Compliance Officer & Company Secretary
Lagos
29 July 2019
Sponsor: Sasfin Capital (a member of the Sasfin group)
GLOSSARY
“boe/day” barrels of oil equivalent per day
“bbls/day” barrels of oil per day
“mcf/day” thousand cubic feet per day
“bbls” barrels of oil
“boe” barrels of oil equivalent
“US$/bbl” US dollars per barrel of oil
“US$/boe” US dollars per barrel of oil equivalent
“US$/mcf” US dollars per thousand cubic feet
“MT” Metric Tonnes
“OML” Oil Mining Licence
Date: 29/07/2019 07:07:00
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