Shareholders of Oando Nigeria Plc have unanimously applauded the management team for restoring market confidence by maintaining a track record of growth over the last 18 months, culminating to N8.5 billion profit-after-tax for 2017.
According to a statement by the company, the shareholders urged the management to avoid distractions and intent to destroy the company’s reputation and erosion of shareholder value.
Specifically, a shareholder, Adebayo Adetunji Adeleke commended management for transforming Oando from a downstream company to a dollar-earning upstream focused business.
“The profit declared in H1 2018 has given us hope, I am optimistic that with hard work the company will continue in this stead. I want to commend Oando on the impact of our Corporate Social Responsibility activities, we are touching lives, hundreds of thousands of lives and these same people are praying for the company therefore we will not go down.”
Another shareholder of the company, Tunde Badmus said: “Oando has survived all odds and is still strong. I am confident the journey of the company will lead to victory for all. I commend the management for being prompt to respond to issues concerning the business operations. We pledge to continue to support you.”
The president of Ibadan Zone Shareholders Association, Sola Abodurin said: “I thank the Board of Directors for the efforts they’ve made to face challenges. About two years ago, if you looked at our debt profile, you’d wonder how the company would survive. But today, we’ve not only survived, we have drastically reduced our debt by over 50 per cent.
“ I appreciate the Board for the restructuring initiatives put in place when oil prices fell to keep the company going. If there are other initiatives you can embark on to keep the company growing from success to success, I urge you to take them on. Thank you for giving hope to the hopeless with the adoption of schools across Nigeria and the various CSR projects you’ve embarked on.”
An analysis of Oando’s financials shows that the company’s turnover grew by 11 per cent to N297.3 billion from N267 billion (H1 2017); gross profit increased by 53 per cent to N51 billion compared to N33.4 billion (H1 2017); and profit-after-tax increased by 86 per cent to N8.5 billion compared to N4.6 billion (H1 2017). 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 2017.
According to the company’s statement, 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 realized crude selling price compared to the same period in 2017. Oando’s performance was further buoyed by sale price increases of 19 per cent for NGL and 13 per cent for natural gas deliveries.
“All resolutions passed at the AGM were approved including the re-appointment of Ernst and Young as auditors, the directors were authorised to fix the auditors remuneration; appointment of Alhaji Bukar Goni Aji and Muntari Zubairu to the board of directors; election of audit committee members, and approval of the remuneration of non-executive directors.
In his closing remarks, the Group Chief Executive Officer, Oando Plc, Wale Tinubu, assured the shareholders of management’s commitment towards creating value for and protecting the interest of all shareholders.
“We are pleased that your Company has shown resilience during the difficult times and is now on track for sustained growth. We will continue to evolve in the energy space to ensure that even when today’s energy products become less attractive.
“ We have already made the investment for tomorrow. The interest of you, our esteemed shareholders, is paramount to us and we remain focused on growing profitability to ensure adequate returns accrue to you.”