Oando Plc has just released its audited results for the full year of 2021 showing pre-tax profits grew by 133.12% year on year, reaching N44.474 billion.
Key highlights 2021 FY vs 2020 FY
- Revenue N803.460 billion +68.42% YoY
- Cost of sales N761.934 billion +74.50% YoY
- Gross Profit N41.526 billion +2.68% YoY
- Reversal of (impairment)/impairment of assets, net, N104.927 billion +266.82% YoY
- Administrative expenses N106.367 billion +15.24% YoY
- Operating profit/(loss) N78.830 billion+206.04% YoY
- Net Finance cost N34.502 billion -42.74% YoY
- Profit for the year N32.859 billion +123.36% YoY
- Earnings per share N2.88 +130.32% YoY
- Cash and cash equivalent N27.877 billion +92.25%.
Insights
Oando’s significant growth in pre-tax profit can be attributed to the reversal of impairment of non-current receivables and trade and other receivables amounting to N104.382 billion in 2021 FY.
- Also, the company reported a 68.42% growth in revenue, primarily driven by the sales of crude oil, which primarily contributed to the overall growth in revenue.
- However, the company experienced substantial growth in inventory cost and other directly attributable costs, leading to a year-on-year surge of 74.50% in the cost of sales, reaching a total of N761.934 billion. Consequently, the growth in gross profit was moderated to a rate of 2.68%.
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Is there any reason why Oando is just releasing FY2021 report? What is the reason for the net reversal of asset impairment?
Thanks!
Oando’s share price is already over #12. No bastard thief can buy it at #7 anymore. Hip hip hip,hurray?.
It seems oando has forgotten that every investor primary motive I’m investment is to earn dividends and bonuses…
They should stop telling stories and start acting for actions speaks louder than words.
Judging by it’s Long term plans, it is expected it’s Management team pays bonus scrip to her share holders in the ratio of 5 for every 1 or at lowest 3for every 1 held.
When will Oando start paying dividend to share holders? This is long overdue.