BY PETER EGWUATU
In compliance with the post listing requirement of the Nigerian Stock Exchange (NSE), Oando Plc has announced a Profit After Tax (PAT) forecast of N3.6 billion for the second quarter ended June 30, 2012, just as Proshare stated that the company is likely to surpass the forecast based on its previous performance indices.
While reviewing the earnings forecast of the company, Proshare said, “Oando Plc has a 124 per cent chance of achieving or exceeding its PAT forecast and a 104% chance of delivering on its turnover projections for the period in view.
Proshare has reviewed the forecast against its believability index, relying on previous performances against forecast; to confirm the following: “That the impressive PAT of N6.6billion declared against N2.9billion forecast in Q2’11 and N10.1billion declared against N3.05billion forecast in Q3’11 impacted this considerably.”
According to Proshare, “This weights fall within the ‘most believable’ forecast range for quoted companies in the sector.”
In the same vein, another analyst firm, Vetiva Capital stated that Oando outlook on long term is still positive .
According to Vetiva, Oando, with the commencement of East Horizon Gas Company gas pipeline system and OES Passion rig deployment for Shell drilling contract, has established further revenue streams with expectations of N5 billion and N5.4 billion revenue contributions in 2012 respectively. We believe this business is on a sound footing and is poised to tap into growth opportunities across Nigeria ’s energy space.”
Meanwhile, other performance forecast indices presented by Oando shows: Turnover 191,354billion Cost of sales N170,445 billion, Operating expenses N 9.850 billion, Other operating income N 559 million, Operating profit N11,618 billion, Interest expense & charges N3,995 million, Profit before taxation N 5.339 billion, and Provision for taxation N1,728 billion.
Meanwhile, according to the forecast presented to the NSE, Oando stated that it hope to achieve its forecast based on certain key assumptions, such as : Exchange Rate NGN/USD – Interbank remaining at N160; Annual Consumer Inflation Rate (Y/Y% at 11.1% ; Average borrowing rata at 17.5%; Average selling price per barrel of crude $110/barrel; Average selling price per litre of Automotive Gas Oil (AGO) at N153/litre ($0.96/litre) among others.