Oando, which recorded higher profit in 2018 sustained the positive performance in the first quarter (Q1) of 2019, an achievement that has raised investors’ hope for better returns.
The company posted a revenue of 168 billion naira, up by 12 percent from 150.6 billion naira posted in the corresponding period of 2018. Profit-after-tax increased by 11 percent to 4.6 billion naira compared with 4.2 billion naira in Q1 2018.
The results show that the oil company decreased its total borrowings by five percent to 200.9 billion naira compared to 210.9 billion naira in 2018, while its long term borrowing decreased to 75.8 billion naira compared to 76.8 billion naira.
The figures reflected an increase in production by 11 percent at 43,745boe/day compared to 39,556boe/day in the same period of 2018 in Oando’s upstream subsidiary.
The company, despite its partial divestment from its marketing subsidiary continues to increase its market share in the downstream sector through its trading business, Oando Trading which recorded an 11 percent increase year-on-year, driven by a strong performance in its crude oil trading division and a three percent increase in turnover to $312 million, from $301 million.
The Group Chief Executive of Oando, who commented on the results said “our results reflect the progress made over the last few quarters and provides an indication of our expectation for the year”.
He added that “now that our debt profile is down by 78 percent from $2.5 billion as of December 2014 to $558 million, and our de-leverage programme is 90 percent complete with most of our non-core operations divested for good value, we can now focus on steady growth in our upstream entity”.
According to the company, the move speaks volumes of Oando’s willingness to restructure its business for increased revenue generation by focusing on its dollar earning businesses, Oando Energy Resources (OER), its exploration and production subsidiary, and Oando Trading, its trading business.