Omodele Adigun
Oando Plc has posted a profit after tax of N7.2 billion in the first half (H1) of the year.
This is contained it its unaudited results for the six months period , which ended on June 30, 2019, made available to the Nigerian Stock Exchange (NSE) at th weekend.
Commenting on the results, Wale Tinubu, its Group Chief Executive, 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 per cent and 8 per cent 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 per cent 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.”
Highlights of the report show that production increased by 8 per cent at 40,873 boe/day, compared with 37,814 boe/day in the same period of 2018. Oil production in particular increased by 15 per cent from 14,675bbls/day in H1 2018 to 16,876bbls/day in H1 2019, while natural gas production increased by 8 per cent 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.
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.
Total group borrowings for the period stood at N200.7 billion, a five per cent decrease from FYE 2018 (N210.9 billion) while in upstream specifically, borrowings reduced by 13 per cent to $221.3 million compared to $255.6 million in FYE 2018.