Oando Plc has consolidated on its 2016 gains by recording a higher profit for the year ended December 31, 2017. The indigenous integrated energy company, on Friday, announced its audited results for 2017, showing revenue of N497.422 billion, compared with N455.746 billion in 2016.
The company reduced cost of sales from N426.99 billion to N409.341 billion in 2017. Also, administrative expenses declined from N109 billion to N77.89 billion, while net finance cost reduced from N51 billion in 2016 to N33.78 billion in 2017.
Consequently, profit after tax soared from N3.913 billion to N19.77 billion in 2017, showing an increase of 405 per cent. Oando Plc’s net debt reduced to N217.1 billion from N230.6 in the comparative period of 2016.
This comes in the wake of oil prices on an upward trajectory, an improved operating environment, the exit of a 13 month long recession and most importantly the continued strengthening of their business model through the effective implementation of the company’s strategic initiatives of growth through their dollar earning upstream portfolio; deleverage through asset divestments and the expansion of in-house oil export trading business.
OER (Oando Energy Resources) 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 production at Ebendo as a result of the Trans Forcados pipeline, which was down in the same period in 2017; therecwas also an 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.
This was primarily due to significant reductions in gas production and delivery caused by the rupturing of Gas Transmission System (GTS-4) gas line and pipeline and terminal constraints at its OMLs 60 to 63. The upstream business recorded a net profit of N26.33 billion ($86.1 million) compared with N91.83million ($0.3 million) in the comparative period of 2016.
Oando’s affiliate, Axxela, recorded an 11 per cent increase in natural gas deliveries in 2017. This achievement, according to the company, was in spite of restricted gas supply in H1 2017 due to the sabotage of upstream gas supply facilities by militants.
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