A Review of the Nigerian Energy Industry

Oando extends losses to N47.8bn in nine months of 2015

Wale-Tinubu.Oando CEOjpg
Mr. Wale-Tinubu.Oando CEO

28 October 2015, Lagos – Oando Plc has recorded a loss after tax of N47.8 billion for the nine months ended September 30, 2015  compared with a profit  after tax of N5.2 billion in the corresponding period of 2014.

The integrated energy company had last Friday declared a historic loss after tax of N183.9 billion for the year ended December 31,  2014  and loss of N35.1 billion for the six months ended June 30, 2015.

While it was hoped that the company may reduce its losses in the very  near future and bounce back into profitability, it declared a loss after tax of N47.8 billion for  the nine months in 2015.

According to the unaudited results released by the Nigerian Stock Exchange (NSE), the company recorded  a revenue of N95.8 billion in 2015, down from N101 billion in 2014. Gross profit fell from N64 billion in 2014 to N41 billion in 2015. However, the company recorded an impairment charges of  N24 billion on its assets in 2015, as against non in the corresponding period of 2014. Net finance cost rose from N28.6 billion to N38.8 billion. Consequently, Oando ended with a loss after tax of N47.8 billion as against a profit after tax of N5.2 billion in 2014.

Commenting on its disappointing 2014 full year results, Oando had  said the less than stellar numbers were indicative of the emergence of a new global oil order due to continuing crude price fluctuations – a near halving since June 2014 – that has changed the corporate landscape for oil companies, and has far-reaching implications for the economies of oil exporters.

Giving further insight into the results, the Group Chief Executive of Oando, Mr. Wale Tinubu, had said: “Our nation is experiencing change, as witnessed from the tone of redirection in the oil and gas industry, which will lead to improved accountability and operational efficacy in all governmental agencies in this sector.

“Our business is also experiencing this change with the sale of 60 per cent of our downstream business in line with our strategic goals, placing fundamental growth expectations on the upstream division, as already evidenced in the 11-fold increase in production and 82 per cent increase in 2P reserves,” he said.

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