Oando Plc has released its unaudited results for the six months period ended June 30, 2019. Highlights of the results of the leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange show 8 percent production increase in first-half (H1) of 2019, at 40,873boe/day compared to 37,814boe/day in H1 2018. It also recorded 6 percent turnover increase to N315.4 billion compared to N297.3 billion (H1 2018). ProfitAfter-tax (PAT) decrease by 16percent to N7.2 billion compared to N8.5 billion (H1 2018).
“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”, Wale Tinubu, Group Chief Executive, Oando Plc said.
Commenting further on the results, he said “Our crude oil and natural gas production grew by 15percent and 8percent 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 99percent 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,” Tinubu noted.
The company recorded 5percent decrease in total group borrowings at N200.7 billion compared to N210.9 billion (FYE 2018). During the six months ended June 30, 2019, production increased by 8percent at 40,873boe/day, compared with 37,814boe/day in the same period of 2018. Oil production in particular increased by 15percent from 14,675 barrels per day (bbls)/day in H1 2018 to 16,876bbls/day in H1 2019, whilst natural gas production increased by 8percent from 118,866mcf/day in H1 2018 to 128,533 mcf/day in H1 2019.
Capital expenditure of $62.3 million (N22.5 billion) was incurred in the six months of 2019 compared to $24.7 million (N8.9 billion) in same period in 2018. This consists of $59.7 million (N21.6 billion) at OMLS 60 to 63, $1.9 million (N686.2 million) at OML 56, $0.04million (N14 4 million) at OML 13, and $0.8 million (N288.9 million) on other assets.
