| Corporate Results |    2670 VIEWS  |
| Corporate Results | |
| 2670 VIEWS | |
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Monday, October 28, 2019 / 02:56PM / By NSE With Additional Statement From The Company/ Header Image Credit: Daily Post Nigeria
Today, Oando Plc released
its Q3 2019 results for the period ended September 30, 2019.
Key Highlights
Revenue decreased by 18.08% to N413.76bn
from N505.09bn in Q3 2018
Profit before Tax decreased by 293.46% to
N-9.23bn from N4.77bn in Q3 2018
Profit after Tax increased by 25.66% to
N13.07bn from N10.39bn in Q3 2018
Total Equity increased by 4.4% to
N289.33bn from N277.12bn in Q3 2018
Oando Posts Q3 2018 Results:
Declares 26% Increase in PAT
All
companies listed on the Nigerian Stock Exchange will be expected to have
submitted their Q3, 2019 results by the end of business on Thursday 31st
October; so far volatility in the economic and business climate has impacted
negatively on the earnings of some companies. An ongoing narrative across
board has been poor sentiment for equities; specifically equities have been
dragged down by weaker macroeconomic indicators, which has stifled earning
expectations and increased appetite for debt securities.
Against this backdrop Oando PLC published its
financial results for the month ended September 2019, posting another
profit. Without a doubt 2019 has been another challenging year for the
company, not just in terms of external factors beyond its control but an
ongoing conundrum with the regulator. Despite this the company's results
show that a management team that has worked aggressively to maintain a trend of
positive results reflected in higher production and profit after tax.
An analysis into the company's financials for the
month ended September 30, 2019 shows that its turnover decreased by 18% to
N413.8billion compared to N505.1billion in same period of 2018; total borrowing
decreased by 8% to N193.1bn from N210.9bn in comparative period of 2018 while its
production grew by 8% to 43,045 boe/day from 40,039 boe/day in Year-to-Date
(YTD) September 2018. The increase in production was driven by an 11% increase
in natural gas production and an 8% increase in crude oil production. To cap
this, Oando recorded a profit after tax of N13.1bn a 26% increase from N10.4bn
in same period of 2018.
A review of the company's activities in YTD ended
September 2019 shows proactive work to drive increased revenue in the medium
term. To this end Oando recently announced that the NNPC/NAOC/OANDO Joint
Venture (of which Oando Energy Resources, the upstream subsidiary of Oando PLC,
holds a 20% working interest) had made a significant gas and condensate find in
the deeper sequences of the Obiafu-Obrikom fields in OML 61, onshore Niger
Delta. Preliminary evaluation indicates that the find amounts to about 1
trillion cubic feet of gas and 60 million barrels of associated condensate in
the deep drilled sequences. The well can deliver in excess of 100 million
standard cubic feet/day of gas and 3,000 barrels/day of associated condensates.
The discovery is part of a drilling campaign planned by the Joint Venture aimed
at exploring near-field and deep pool opportunities as immediate time to market
opportunities. In its statement, Oando said; "the full impact of this discovery
will be determined and communicated to the market on conclusion of the next
annual independent reserves and resources evaluation."
Also on a positive note Oando through its upstream
subsidiary reduced its existing Senior Secured Facility to a balance of
approximately $0.4 million. This $450 million facility constituted a portion of
a total of $900 million in debt raised towards the Company's $1.8 billion
acquisition of Conoco Phillips Nigerian business in 2014.
The
hope is that the company will sustain the momentum and continue on this winning
streak in the final quarter of the year and positively impact the Capital
Market and stakeholders alike
Visit Oando Plc IR Page in Proshare MARKETS
Graph - One Year Share Price Movement
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