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Friday, July 26, 2019 06:31PM / NSE
Oando
Plc released its unaudited second quarter results for the period ended June 30,
2019.
Key Highlights
Revenue
grew by +6.1% to N315.40bn from N297.31bn in the previous quarter.
Loss
Before Tax grew by 663.6% to N17.28bn
PAT
declined by 15.6% to N7.16bn
Net
Assets also increased by 1.8% to N281.97bn from N277.11bn as at December 30,
2018.
Oando PLC
Announces H1 2019 Results, Posts N7.2 Billion Profit-After-Tax
Oando PLC
(referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy
group listed on both the Nigerian and Johannesburg Stock Exchange, today
announced unaudited results for the six months period ended June 30, 2019.
Commenting
on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
“Half year 2019
was a positive period for us as we achieved Strong top and Bottom line earnings
despite our overall performance being tempered by a one-off N14 billion charge.
Our crude oil and natural gas production grew by 15% and 8% respectively
compared to the similar period last year while we also achieved a significant
reduction in our Reserve Based Lending facility to approximately $0.4 million
from $450 million at inception- a 99% reduction. We also concluded the
divestment of our residual interest in Axxela for US$41.5 million, in line with
our strategy of divesting from non-strategic assets and remain on track to
deliver on all our initiatives for the year. Looking ahead, our focus will be
on achieving further growth and profitability by delivering on our production growth
initiatives through strategic alliances and partnerships.”
Results Highlights
8% Production
increase, 40,873boe/day compared to 37,814boe/day (H1 2018)
6%
Turnover increase, N315.4 billion compared to N297.3 billion (H1 2018)
16%
Profit-After-Tax decrease, N7.2 billion compared to N8.5 billion (H1
2018)
5% Total
Group Borrowings decrease, N200.7 billion compared to N210.9 billion (FYE 2018)
Operations
Review
Upstream:
Production
for the six months ended 30 June 2019:
During the six
months ended June 30, 2019, production increased by 8% at 40,873boe/day,
compared with 37,814boe/day in the same period of 2018. Oil production in
particular increased by 15% from 14,675bbls/day in H1 2018 to 16,876bbls/day in
H1 2019, whilst natural gas production increased by 8% from 118,866mcf/day in
H1 2018 to 128,533 mcf/day in H1 2019.
Capital
expenditure of $62.3 million (N22.5 billion) was incurred in the six months of
2019 compared to $24.7 million (N8.9 billion) in same period in 2018. This
consists of $59.7 million (N21.6 billion) at OMLs 60 to 63, $1.9 million
(N686.2 million) at OML 56, $0.04 million (N14 4 million) at OML 13, and $0.8
million (N288.9 million) on other assets.
Downstream:
Traded volumes
for the six months ended 30 June 2019
In H1 2019,
Oando Trading traded approximately 7.3 million barrels of crude oil under
various contracts with the Nigerian National Petroleum Corporation (NNPC) and
delivered 228,970 MT of refined products.
Finance
Review
Borrowings
Total Group
Borrowings for the period stood at N200.7 billion, a 5% decrease from FYE 2018
(N210.9 billion) whilst in our upstream specifically, our borrowings reduced by
13% to $221.3 million compared to $255.6 million in FYE 2018. Since FYE 2014,
the Group has reduced its debt by 58% from N473.3 billion while our upstream
borrowings have reduced by approximately 72% from $801.6 million in 2014.
Look Ahead
Oil prices have
averaged $65 per barrel for most of 2019 and we shall continue employing price
protection strategy by hedging our production.
Our focus will
be largely on driving profitability via growth in our upstream business where
we will pursue production growth initiatives through strategic alliances,
whilst ensuring operational efficiency and fiscal prudence. We will also
continue to work with our partners to achieve cost optimization on our Joint
Venture operations, ensuring the gains from higher revenues are not lost to
increasing operating costs.
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