Oando posts lower interim net profit
Dual-listed Nigerian energy group Oando recorded a N7.2-billion net profit for the six months ended June 30, down from the N8.5-billion reported for the six months ended June 30, 2018.
Commenting on the company’s unaudited results for the first half of this year, Oando group CE Wale Tinubu on Monday said it had been a positive period, owing to strong top- and bottomline earnings growth, despite the overall performance being tempered by a one-off N14-billion charge.
Oando’s crude oil and natural gas production grew by 15% and 8% year-on-year, respectively, while it also achieved a significant reduction in its reserve based lending facility to about $400 000 from $450-million at inception – a 99% reduction.
The company also concluded the divestment of its residual interest in Axxela for $41.5-million, in line with its strategy of divesting from nonstrategic assets, and remained on track to deliver on all its initiatives for the year, Tinubu indicated.
“Looking ahead, our focus will be on achieving further growth and profitability by delivering on our production growth initiatives through strategic alliances and partnerships,” he said.
Turnover increased by 6% year-on-year to N315.4-billion, while group borrowings decreased to N200.7-billion, compared with the N210.9-billion borrowings as at December 31, 2018.
OUTLOOK
Oil prices have averaged $65/bl for most of this year and Oanda said it would continue employing a price protection strategy by hedging its 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, while ensuring operational efficiency and fiscal prudence.
“We will also continue to work with our partners to achieve cost optimisation on our joint venture operations, ensuring the gains from higher revenues are not lost to increasing operating costs,” the company stated.
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