Oando Announces 2012 Half Year Results

Proshare

 

23 July 2012
Press Release
Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria ’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, announced unaudited results for the six months period ended 30 June, 2012, with the following highlights:
•  Turnover grew by 31%, N350.6 billion compared to N267.8 billion (2011)
•  Gross profit increased by 8%, N33.9 billion compared to N31.5bn (2011)
•  Profit-Before-Tax decreased by 20%, N10.4 billion compared to N12.9 billion (2011)
•  Profit-After-Tax decreased by 4%, N6.6 billion compared to N6.9 billion (2011)
Operational Highlights:
· Oando Exploration and Production (OEPL) completed the drilling of a 2nd well in the Obodeti-Obodugwa field.
·OEPL receives date for the completion of the Reverse Take Over (RTO) of Canadian listed Exile Resources Inc., to create Oando Energy Resources Inc.
· OEPL executes farm in agreement to acquire a 40% participating interest in the Qua-Iboe marginal field (OML 13).
· Oando Energy Services’ (OES) fourth rig commenced extensive refurbishment programme in anticipation of commencing a swamp drilling contract with an IOC in 2013;
· Oando Gas & Power (OGP) commenced commercial operations on the EHGC pipeline and flowed gas to its anchor customer.
· The Federal Government of Nigeria attempted full deregulation of PMS in the first quarter, which initially hampered our ability to operate at our regular efficiency. A new PMS pump price of N97 was set and our operations across the nation regularized in the second quarter.
· Our LPG strategy continues to gather momentum with the delivery of over 343,000 cylinders
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “We are pleased to report our Half Year performance for 2012. The year so far has experienced significant developments across the oil and gas sector, we remain steadfast in our commitment to grow our businesses in line with our strategic focus.
The E&P division has been notified of a closing date for the RTO transaction and the subsequent listing of OER on the TSX on the 24th July 2012. The division signed a Farm-in Agreement for the acquisition of a 40% Participating Interest in the Qua Ibo field (OML 13), which immediately increases our 2P reserves by 5mmbbls, whilst also delivering a successful drilling programme in the Obodeti-Obodugwa field (OML 56), which promises an imminent increase in our oil reserves and production. Our fourth swamp rig remains in the United States , undergoing extensive refurbishment, with planned deployment scheduled for early next year.
Our 3 drilling rigs contracted to the IOC’s have maintained high safety standards and a 95% average drilling uptime in their operations. We continue in our strive to expand our footprint in the midstream with our dedicated participation in the FGN’s privatization of generating and distribution assets. Our downstream businesses have been able to fully recover from a challenging first quarter, following deregulation. We continue to reposition and upgrade our existing storage facilities, whilst our drive to switch the nation to the use of LPG (cooking gas) in Nigeria is also well on track with the delivery of over 343,000 cylinders.
The second half of the year promises growth in our industry and we will continue to deliver on our operations and our proposed initiatives for added value creation to our shareholders”.

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