04 July 2016, Sweetcrude, Lagos – Indigenous energy group, Oando Plc, has announced an increase of N4.1 billion on its Profit After Tax, PAT, in unaudited results for the three months period ended 31 March 2016.
The results were delayed due to an audit process overseen by external auditors, Ernst & Young, and extension approvals were sought and received by Oando from the Securities and Exchange Commission, SEC, and the Financial Reporting Council, FRC.
The N4.1 billion increase, according to the company, represents a 120 percent rise compared to figures for the first quarter 2015.
Oando’s financial highlights for the first three months of this year also indicate that turnover decreased by 34 percent, with N64.0 billion realised compared to N97.1 billion for the same period last year.
The company noted that fluctuation in the global crude pricing has changed the corporate landscape for oil companies, and has had far-reaching economic implications on the company and many other indigenous firms in the industry.
It said first quarter results were a welcome contrast for investors and shareholders alike following its dismal 2015 financial performance which was significantly impacted by impairments and foreign exchange pressures.
Commenting in a statement issued by the company, Mr. Wale Tinubu, Group Chief Executive Officer, Oando Plc, spoke of the company’s drive to ensure profitability going forward. “This first quarter of 2016 demonstrates our dedication to return our business to profitability by the end of 2016.
“We have implemented constructive corporate initiatives which are driving forces for our business in this new global reality of economic restraint and lower oil prices in our industry.
“The successful and ongoing implementation of these initiatives reiterates our strategy of growth, deleverage and a return to profitability by the end of 2016.
“As a group, we have placed our focus on growing our upstream higher margined business while still holding fundamental interests in the midstream and downstream sectors. We look forward to a rewarding year, where we solidify our aspirations and return to profitability,” Tinubu said.
Oando said it commenced 2016 with a reinvigorated strategy hinged on key corporate initiatives to drive the company back to profitability and ensure fiscal efficacy, noting that it focused on aggressive debt reduction and recapitalisation to optimise its balance sheet.
The Group, according to a statement, successfully restructured its existing debt through a N94.6 billion medium term note with a local consortium with lower interest rates and a renewed five-year tenor.