By Babajide Komolafe
Oando Plc has posted profit after tax of N8.5 billion in the first half of 2018, H1’18, driven by increase in price of crude oil and gas commodities.
An analysis of the company’s financials shows that the company’s turnover grew by 11 per cent to N297.3 billion from N267 billion in H1’17; gross profit increased by 53 per cent to N51 billion compared to N33.4 billion in H1 2017 while profit-after-tax increased by 86 per cent to N8.5 billion compared to N4.6 billion in H1’17.
In its upstream business, Oando recorded a net profit of N27.1 billion ($75.2 million) compared with N16.3 billion ($53.2 million) in the comparative period of H1’17.
The company in a statement said the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities.
Oando picked up on the industry recovery witnessed in 2017. Brent prices averaged $69.87 per barrel, resulting in a 38 per cent increase in realised crude selling price compared to the same period in 2017.
Commenting on the results, Wale Tinubu, Group Chief Executive, Oando Plc said: “I am pleased to report that Oando Plc has made significant progress in 2018, evidenced by our substantial free cash flow generation and profitability.
“Oil prices have rallied over the last year, a direct consequence of increasing demand and reduced supply. Higher oil prices, and the resolution of Joint Venture funding challenges with the Nigerian National Petroleum Corporation has driven increased investment in the upstream sector.”
Speaking on Oando’s H1’18 financials, Alhaji Kabiru Tambari, an Oando shareholder with the Sokoto Zone Shareholders Association said: “This result reaffirms my commitment to the management of Oando.
Seven quarters of profits in a row is no small feat. Not all companies who have gone through what this company has gone through in the last year would be able to come out this strong. I commend the management team and I hope they continue the good work.”