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Oando turnover hits N343bn
By OMODELE ADIGUN
Wednesday, November 25, 2009
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•Photo:
Sun News Publishing |
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Oando Plc, an integrated energy provider, has announced a turnover
of N343 billion and N6.64 billion as net profit in its financial
report for the third quarter which ended last September. According
to the company, the result shows a seven per cent increase on the
N320 billion turnover recorded in the corresponding quarter of 2008,
while the profit is 19 per cent rise on the previous year’s
third quarter profit of N5.56 billion.
Giving details of the results, it added that “non-marketing
portfolios have continued to actively contribute to the group’s
performance in line with the company’s diversification strategy;
besides improved operational efficiency and superior working capital
management, this result is attributable to increased contributions
from natural gas and monetisation of our upstream businesses.”
Oando, which has a primary listing on the Nigerian Stock Exchange
(“NSE”) and a secondary listing on the JSE Limited in
Johannesburg, also witnessed an impressive 107 per cent rise in
the Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) to N20 billion compared with N9.5 billion recorded within
the same period in 2008.
The company also sustained its diversification programme and industry
leadership as the period witnessed further investments and in the
natural gas and upstream businesses. During this period, the group
signed an MoU with Gazprom, Europe’s largest gas operator,
to jointly develop projects in multiple sectors of Nigeria’s
oil and gas industry. It also made inroad into Ghana’s gas
market with its selection as Strategic Partner to the Ghana National
Petroleum Corporation (GNPC) to develop assets and infrastructure
to harness natural gas resources from the country’s offshore
Jubilee oilfield.
Meanwhile, the upstream division further strengthened its presence
in the sector as it secured approval from Nigeria’s Ministry
of Petroleum Resources to acquire 75 per cent working interest in
exile’s 40 per cent interest in the Akepo field.
Commenting on the results, Mr Adewale Tinubu, group chief executive
officer said: “Our third Quarter 2009 results emphasise the
versatility of our integrated and diversified business portfolio,
which thrived in the face of a challenging local operating environment
mired by the ongoing banking sector reforms.”
True to the company’s strategy, the upstream portfolio continued
to impact on the group’s performance as the exploration and
production division lifted its maiden equity crude oil cargo from
OML 125. The energy services division commenced its $150 million
drilling contract with an International Oil Company, whilst the
gas & power division continued to increase revenue as new customer
connects were secured in Lagos.
“We eagerly await the commissioning of our first captive
power plant in Lagos and the completion of our new pipeline system
in South-East Nigeria. The expansion and monetisation of our Upstream
division will continue to be the bedrock of future growth plans
as we increase crude oil production rates from further development
of our Upstream assets. We remain confident of a positive year end.”
Mr. Tinubu adds.
While the Group continues to show resilience across its different
businesses, the rest of the year presents a more promising outlook.
The Group remains focused on fast tracking monetising its upstream
portfolio and assets that commenced revenue generation last year
and which continues to positively impact the Group’s bottom-line.
OML 125 & 134 are already in production and Akepo and OML 56
are expected to start production in the near future. The Gas and
Power division is positioned for superior performance this quarter
as its power generation arm, Akute Power Limited will commission
its captive power plant with immediate revenue contribution to the
Group.
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