Higher revenue and income tax credits have boosted the profit after tax of Oando Plc to N28.8billion during its 2018 fiscal year , which ended last December..
The company explained in a statement that it was able to maintain a trend by posting positive results for the third consecutive year with its financial results for the full year ended, December 31, 2018 despite a challenging local environment,
The company demonstrated a strong balance sheet with a 46 per cent increase in its profit after tax (PAT) to N28.8 billion from N19.8 billion in the comparative period of 2017 driven by higher revenue and income tax credits.
Its total Group borrowings decreased by 11 per cent to N210.9 billion from N237.4 billion in 2017, while long term borrowings decreased by 23 per cent to N76.8 billion compared to N99.6 billion in the same period of 2017.
Speaking on the significant reduction in borrowings, its Group Chief Executive , Wale
Tinubu, said: “Our asset base is delivering strong free cash flows as evidenced by a 70% reduction in our Upstream Borrowings since the closure of our landmark acquisition of ConocoPhillips’s Nigerian assets in 2014.”
A review of the results shows positive performance across most of its financial indices;reaffirming the company’s concerted efforts and commitment to reversing the tide following the oil price crash in 2014. As at full year end 2018, turnover increased by 37per cent to N679.5 billion , compared to N497.4 billion in 2017, driven primarily by higher oil prices resulting in higher oil revenue and higher gas prices, which led to higher gas revenues. In addition, gross profit grew by 9 per cent to N96.3 billion from N88.1 billion in 2017.
Worthy of note is the fact that, since its acquisition of ConocoPhillips Nigeria in 2014, Oando has embarked on a proactive drive to significantly reduce its debt and liabilities. From a N473.3 billion corporate facility in 2014 to N210.9 billion in FYE 2018, a 55 per cent decrease and in its upstream business, the company has reduced its debt by 70% from $801.6 million in 2014 to $260 million as at FYE 2018.The company’s FYE 2018 results are further evidence that the company’s management team is focused on maintaining a strong balance sheet, profitability, value creation and a business that is indeed here for good.