Oando Plc has reported a growth in profit-after-tax by 117 per cent to N4.6bn for the first half of 2017, compared to a loss of N26.9bn posted in the corresponding period of 2016.
Thus, for the third time in a row, the oil major has posted positive financials defying speculations and bolstering confidence in the oil and gas sector.
For the half-year ended June 30, 2017, its turnover increased by 26 per cent to N267.1bn from N212.3bn; gross profit increased by 76 per cent to N33.4bn from N19bn; and net finance costs more than halved to N16.4bn from N35.3bn.
In its financial year-end 2016 results, the company had declared N3.5bn PAT, and in the first quarter of 2017, Oando posted N1.7bn PAT.
Amid the sectorial challenges, the company in a statement on Monday said it had continued to wax strong, adding that, “These numbers are indicative of the company’s ability to manoeuvre the cyclical nature of the sector by adapting quickly to continued low oil prices.
“Oando has done this through the successful implementation of its corporate strategic initiatives of growth, deleverage and profitability alongside its renewed focus on its dollar earning businesses.”
Commenting on the company’s financials, the Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said, “With security concerns in the Niger Delta receding, Nigeria’s economic recovery has been buoyed by a boost in oil output, while the legislative approval of certain segments of the Petroleum Industry Bill provides greater long-term policy certainty for the sector. Our returns underline our continued successful foray into the upstream.”
The company, therefore, stressed that the approval of the Petroleum Industry Governance and Institutional Framework Bill was set to further improve the sector, adding that the anticipated fall out of the PIGB was a more efficiently regulated oil and gas industry and a conducive business environment for sector players.
Tinubu added, “We remain committed to optimising our overall production base, seeking unique profit-driven opportunities to further partner the International Oil Companies, while firming up our balance sheet to provide greater shareholder value.”