Oando Plc recently announced its unaudited results for the six months period ended June 30, 2018. Turnover increased by 11%, from N267.0 billion in 2017 to N297.3 billion in 2018. Gross Profit increased by 53% from N33.4 billion in 2017 to N51 billion in 2018. Profit-After-Tax increased by 86%, from N4.6 billion in 2017 to N8.5 billion in 2018.
In a press release issued alongside the result, the company gave a brief summary of activities across its various units.
Oando Energy Resources (OER) its upstream arm had a slight dip in crude oil production from 7.2 million barrels in 2017 to 6.8 million barrels in due to storage constraints and down times at OML 56 Ebendo. Gas production also dipped due to shut down at OML 60-63 for repairs and maintenance.
Capital Expenditure rose from $15.9 million (N4.9 billion) in 2017 to $24.7 million (N8.9 billion) in H1 2018. Capex was focused on drilling activities and facilities maintenance as well as exploration-related activities.
The downstream arm Downstream Oando Trading Dubai (OTD) recorded a total of 6.6 million barrels of Crude Oil traded and 195,497MT of petroleum products delivered in H1 2018. Trading revenue remained relatively stable at just over N219.2 billion ($608 million.
The company intends increasing production growth in its upstream segment via investment in targeted profitable projects whilst maintaining fiscal prudence.
In its Trading business, current plans for growth include expansion of its trading structures in Africa, capitalizing on expanding scope in Southern and East Africa, as well as developing key supply mechanisms into the Middle East and North Africa.
Oando Plc shares closed at N4.85 in yesterday’s trading session on the Nigerian Stock Exchange (NSE) up 1.04%. Year to date, the stock is down 19%.