Oando Plc has announced its unaudited financial results for the Half-Year period ended June 30, 2019. The indigenous energy group reported an 8% increase in production while its turnover for the six months increased by 6%.
In a statement released on the website of the Nigerian Stock Exchange (NSE), Oando disclosed that its production increased by 8% from 37,814boe/day (H1 2018) to 40,873boe/day for the period under review.
Also, its half-year turnover climbed to N315.4billion compared to N297.3billion recorded in the corresponding period in 2018. This shows a 6% increase in the company’s revenue growth.
Oando’s profit-after-tax, however, wasn’t so good, as the oil and gas firm dropped by 16% to N7.2billion compared to the result of the corresponding period of 2018 which recorded N8.5billion.
Meanwhile, the company’s Total Group Borrowings declined by 5% as the financial statement showed that 2019 first half recorded N200.7billion compared to 2018’s first-half period which was N210.9 billion.
Speaking on the results, the Group Chief Executive of Oando Plc, Wale Tinubu, said, “Half year 2019 was a positive period for us as we achieved strong top and bottom-line earnings despite our overall performance being tempered by a one-off N14 billion charge. Our crude oil and natural gas production grew by 15% and 8% respectively compared to the similar period last year while we also achieved a significant reduction in our Reserve Based Lending facility to approximately $0.4 million from $450 million at inception – a 99% reduction.
“We also concluded the divestment of our residual interest in Axxela for US$41.5 million, in line with our strategy of divesting from non-strategic assets and remain on track to deliver on all our initiatives for the year. Looking ahead, our focus will be on achieving further growth and profitability by delivering on our production growth initiatives through strategic alliances and partnerships.”
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Oando versus SEC: The result showed that the tussle between Oando and the Securities and Exchange Commission didn’t have a far-reaching effect on the company’s production and sales.
Oando has been having a leadership tussle with SEC. The regulator demanded that Wale Tinubu, Oando Chairman and other top executives resign from their positions over mismanagement claims.
However, the Federal High Court sitting in Lagos has granted leave to the oil and gas company to file a motion for a judicial review of the decision. Justice Ayokunle Faji of the Federal High Court had granted leave for an order of certiorari for the purpose of quashing the decision of the capital market regulator.