Integrated energy solutions provider, Oando Plc has cut down its debt by over 70% in four years. The company disclosed this following the release of its full-year audited 2018 results last week.
Here are highlights of the results
Revenue for the period was N679.5 billion, an increase of 37% compared to the same period in 2017 (N497.4 billion). This was primarily driven by an increase in commodity prices and higher oil production.
In the twelve months to December 31, 2018, gross sales price for oil increased by 33% to $69.44/bbl from $52.10/bbl in the same period in 2017. Sale price for natural gas increased by 27%, whilst NGL declined by 4%.
Gross Profit for the period was N96.3 billion, an increase of 9% compared to the same period in 2017 (N88.1 billion). The increase is primarily driven by higher revenue as a result of higher commodity prices and higher oil production.
PAT is up
Profit-After-Tax for the period was N28.8 billion, an increase of 46% compared to the same period in 2017 (N19.8 billion). This was primarily driven by higher revenue as well as income tax credits.
Borrowings are down
Total Group Borrowings for the period stood at N210.9 billion, an 11% decrease from FYE 2017 (N237.4 billion) whilst in our upstream specifically, our borrowings reduced by 21% to $255.6 million compared to $324.6 million in FYE 2017.
Since FYE 2014, the Group has reduced its debt by 55% from N473.3 billion while our upstream borrowings have reduced by approximately 70% from $801.6 million in 2014 to $260 million (FYE 2018).
The company also hinted at the possibility of expanding across Africa, while maintaining operational efficiency.
Our upstream business will continue to pursue production growth initiatives through strategic alliances, whilst ensuring operational efficiency and fiscal prudence.
Our Trading business will continue to solidify its position in Nigeria and carry out growth initiatives, whilst exploring opportunities for expansion across Africa.
The Group as a whole remains focused on driving profitability via growth in our upstream business and achieving further reduction of borrowings to ensure value accretion to shareholders.
Oando is currently trading at N5.15 in today’s trading session on the Nigerian Stock Exchange (NSE), down 8.85%