01 May 2018, Sweetcrude, Lagos – Oando Plc has posted a N4.1 billion profit-after-tax in the first quarter 2018.
In a statement on Monday signed by the company’s secretary, Ayotola Jagun, Onado said the N4.1 billion profit was from the audited results for the three months period ended March 31, 2018.
According to the report, turnover increased by 9% to N150.5 billion compared to N138.4 billion (Q1 2017), while gross profit increased by 108% to N27.9 billion compared to N13.4 billion (Q1 2017). Profit-after-tax increased by 145% to N4.2 billion compared from N1.7 billion (Q1 2017)
Commenting on the results, Mr. Wale Tinubu, Group Chief Executive, Oando Plc, said: “I am pleased to announce that the company has maintained the momentum of 2017 by posting a profit of N4.1 billion in our First Quarter ended March 31, 2018, unaudited financials.
“Our Q1 performance was characterised by a stable operating environment, continued incline in crude oil prices, and the highest level of compliance by member countries of the OPEC accord.
“Considering the background of current industry trends, the company is committed to maximising throughput rates to ensure a positive financial performance in the ensuing quarters of 2018.”
The company’s upstream company, Oando Energy Resources (OER) recorded a 4% increase in total production to 3.6MMboe (average 39,556 boe/day) from 3.4MMboe (average 38,125 boe/day) in the comparative period of Q1 2017
OER achieved a net profit of N8.6 billion ($23.8 million) compared with N5.8 billion ($16.2 million) profit in Q1 2017
OER recorded an average production of 39,556 boe/day in the 3 months ended March 31, 2018 compared to 38,125 boe/day in the comparative period of 2017.
Improved production was primarily due to increased output from Ebendo as a result of the Trans Forcados pipeline, which was down in the same period in 2017 as well as increased production at OMLs 60 to 63 as a result of reduced sabotage and crude theft activities, which necessitated a shut-in on production lines in the comparative period of 2017, the report said.
OER recorded a net profit of N8.6 billion ($23.8 million) compared with N5.8 billion ($16.2 million) in the comparative period of Q1 2017. The increase in net income between the quarters was primarily due to higher revenues resulting from a general increase in the price of oil and gas commodities (Q1 2018: Oil -$65.49/bbl, Gas – $1.54/mcf, NGL – $13.59/boe, compared to Q1 2017: Oil – $51.74/bbl, Gas – $1.39/mcf, NGL-$9.62/boe).
Its midstream affiliate achieved drawdown on an N1.5 billion facility to refinance the Central Horizon Expansion Pipeline’s term loan.