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.
Going Forward
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%.
The Wale Tunubu led management team of Oando Plc has proved, yet, again, its incompetence and flaws in returning the company to profitability so that investors can earn good returns via bonuses and dividend payout. This H1 2018 is cooked up to hide the deplorable conditions Oando Plc has down graded itself amongst the first tier oil companies in that category. Very sad that year in, year out, Wale Tinubu and his self serving team have earned bad reputation as “dooms day managers” of a company whose share price plummeted from #93/share in 1998 to #4.5/share in July 2018 (20 years, later); indicating insensitivity to assuage the bad felling of shareholders who are now “living as skeletons on empty stomach” having technically lost their share price over time; while Emperor Wale Tunubu, et al, fed fat on the dead bodies of many shareholders who have died on account of bad and greedy policies ruling the company for 20years.
This is a replication of the characters in the book – “Animal Farm” by George Orwell. In the satire, Mr Jones (Mr Wale Tinubu) of the Manor Farm (Oando Plc) wrecked the animals by ensuring that all the benefits of their labors benefited only the master. The animals (shareholders) were given only the bearest minimum of food to prevent them from starving; whilst Mr Jones (Mr Wale Tunubu) is “swimming in the ocean of incredible affluence and wealth unmatched by the infamous General Sani Abacha loot”. What a miscarriage of purpose for a company shareholders “trusted” and invested their “blood and last breath” to get returns.
Unlike the two courageous cart horses Boxer and Clover who took Mr Jones head on and chased him out of the farm and reclaimed it for good until some animals became more equal than others. The same scenario is replicated in Oando Plc whereby some majority shareholders took the docile management to court, got their “settlements” and abandoned the struggle to “thine tents oh Israel”. No thanks, too, to one Kemi Adeosun, whose strange pecuniary interest in the affairs of Oando Plc stalled every effort to proceed with forensic audit of the company. And so, ordinary shareholders remain in the scenario of the gruelling wrestling steel cage match where the “combatants have no place to run, and no place to hide”. Ordinary shareholders are stuck in this kind of manger because there is no hope anymore, that Oando Ltd (Plc) will survive the “ides of march” masterminded by Wale Tunubu and his co-travellers against the people. All hope is lost as miracles have become “aches of bygone days”.