OANDO has announced a N3.8bn profit (near US $24 million) for the six_month period ending June 30, 2009, representing a 4% increase over the same period in 2008. Against the background of the global economic downturn, the profit underlines Oandoâ€™s resilience, and vindicates its diversification and growth strategy.
* Turnover N165.0b up 33%
* 37% gross margin increase
* EBITDA of N10.6b, up 75% up from same period in 2008
* Profit after tax of N3.8b up 4% from same period in 2008
* Earnings per share up 4%
Commenting on the results, Oando CEO Wale Tinubu said, â€œWe are delighted to present results which reflect our resilience in a highly volatile business environment characterised by; global economic downturn, uncertainties in policy direction of government with respect to deregulation of the petroleum industry and non performance of the Petroleum Subsidy Fund (PSF). As usual, our non_marketing businesses continue to steadily impact on the companyâ€™s performance, particularly the gas division with the expansion of the Greater Lagos natural gas distribution network, whilst, the leadership of our Marketing and Supply & Trading divisions continues to deliver sustained value to the group.â€
Over the past year, Oando made significant investments in energy services and upstream operations, investing N73bn in fixed assets.
Oando has continued to pursue efficiency in cash management resulting in a robust cash and bank balance of N44bn. Long term liabilities remained at N48bn.The traditional downstream businesses continued to make substantial contributions to the Groupâ€™s performance during the period. Although the Nigerian Federal Governmentâ€™s attempt to remove the petroleum subsidy took its toll on our marketing businesses, the division was able to perform above prior year levels.
Commenting further, Tinubu said, â€œThis quarter recorded a number of significant investments to consolidate our diversified platform, paramount of these was the acquisition of two additional rigs that saw us emerge as Nigeriaâ€™s indigenous largest drilling services provider with a fleet of five rigs. With our East Horizon Gas Project and Lagos captive power plant initiative at near-completion stages; our rigs securing long term contracts; and the monetization of our producing oil fields.