Business

June 22, 2009

Oando records 52 per cent increase in PAT

By Peter Egwuatu
Oando Plc has announced an increase in its Profit After Tax (PAT) for its audited reports for the financial year ended December 31, 2009, with a 52% increase in the Group’s net profit.

Okereke

Okereke

This grew from N5.48 billion in 2007 to N8.34 billion in 2008. This remarkable result was attributable to the company’s improved operational efficiency and increased trade volumes.

The result which was made available to Vanguard show that the company is paying a total dividend of N6.00 per share.

Vanguard also gathered that the board voted to recommend a dividend of N3.00 for each ordinary share of 50 kobo in addition to the interim dividend of N3.00 paid within the financial year. This brings to N6.00 each the total dividend for the year subject to shareholders’ approval at the next Annual General Meeting.

The result shows that turnover increased 83 per cent  to N339billion from N186bn in 2007. Gross profit grew 59 per cent  to N11billion from N7billion  in 2007. Gross Profit Margin increases by 85 per cent  to N40billion. Profit attributable to ordinary shareholders rose by 53 per cent to N8billion from N5billion  in 2007.  Earning per share increases to N9.90 from N7.24.

Other operational highlights show sterling improvement of 165 per cent from N8.1billion in 2007 to N21.4billion in 2008. Efficiency initiatives improved performance in traditional marketing and .The company concluded on the purchase of two rigs while an additional rig was bought during the year

During the year under review the company acquired significant stake in offshore blocks OML 125 & 134. The strong performance according stock market operators  demonstrates the robustness of Oando’s diversified business model that enables it deliver consistent value despite a depressed macroeconomic environment worsened by exchange rate fluctuations in the last quarter.

In line with its corporate objectives, year 2008 was largely devoted to expanding the Group’s diversified platform as the company is geared to become the largest integrated energy solution provider in Africa . The performance during the year at each of the divisions supports this goal and reinforces its belief in the sustainability of this model.

Market sources stated that the year will go down as a milestone in Oando’s upstream diversification programme.  ‘It is the year it emerged Nigeria ‘s first indigenous company with producing deepwater assets by the acquisition of stakes in offshore blocks OML 125 & 134 and increased its state-of-the-art rigs fleet to three” they added.

Pursuant to this, Oando was able to grow its business considerably within the year in the exploration and production entity where revenue growth was propelled by these substantial investments, and in its traditional marketing business, where increased trade volumes and efficient supply chain management resulted in significant performance improvements. In general, Oando’s resilient performance in 2008 underlies the Group’s solid fundamentals.

Supply and Trading Limited – the trading arm of the Group- took advantage of emerging opportunities along the energy value chain as the largest private importer of petroleum products into Nigeria .

The Gas division also performed creditably, having completed the Lagos Phase Three Project connecting the Industrial hubs in Lagos . Effort at replicating same feat in the Eastern part of the country is near completion stages.