Oando grows PAT by 110%, pays N2.4bn dividend

29 October 2014, Lagos – Oando Plc has declared a dividend of N2.4 billion for its shareholders for the financial year ended December 31, 2014.

Announcing this to the shareholders at 37th Annual General Meeting, the Chairman of the Board of Directors of Oando, Oba Michael Gbadebo said “ The dividend represents a 30 kobo per share for the 2013 financial year and and also an interim of 70 kobo per share for the six months ended June 30, 2014, which amounted to N2.4 billion at N1 per share

Mr. Wale Tinubu, Oando CEO

The company reported a gross profit of N50.5 billion for the first half, H1 2014, showing an increase of 68 per cent from N30.233 billion in the corresponding year, 2013. Profit before tax rose 103 per cent from N6.156 billion to N12.452 billion, while profit after tax grew by 110 per cent to hit N8.9 billion, compared with N4.271 billion.

Highlighting on the impact of Oando’s $1.5 billion acquisition of ConocoPhillips Nigeria which has transformed the company into Nigeria’s largest indigenous oil and gas producer, shareholders were assured of further improvements in the company’s performance as the acquisition is set to increase daily oil production exponentially by 600% equivalent to 45,000 boe/d, annual revenue of over US$600 million, and annual free cash flows of $150 million.

Commenting on the released results, Group Chief Executive, Oando Plc, Mr. Wale Tinubu said “With an eye to the future, we took on our largest and most daring feat with the acquisition of ConocoPhillips Nigeria, adding capacity to support our future growth plans.

Our strategic refocus on the higher margin promises to create profitable growth for us and immense value add for our stakeholders in the near term.

We have succeeded in repositioning ourselves within the sector, and through future acquisitions and innovative efficacy we will seek to up our market share in sub-Sahara’s Upstream sector within the next five years to 100,000 boe/d in net production. We remain committed to strengthening our balance sheet and expect 2014 to be another strong year for the Company.”

“In the first half of 2014, the company has already seen positive indications from its active strategic initiatives; upstream investments, midstream expansion and downstream optimization. Based on its Q2 2014 performance, it is likely to exit the year with a N24 to N30 billion profit” he added. Meanwhile, shareholders at the AGM commended the company for its performance as well as its successful acquisition of ConocoPhillips.

The various leaders of shareholders’ groups, such as Gbenga Idowu, Joseph Okelana, Chief Timothy Adesiyan, Goodluck Akpore said “The Board and management of Oando Plc have shown commitment to the growth of the company. Now, we the shareholders expect higher dividend haven endured for years since the company commenced its restructuring and transformation programme.



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