Oando posts ₦4.2 billion profit in Q1

Oando Plc has announced ₦4.2 billion profit-after-tax (PAT) in its first quarter 2018 results.The performance came despite the ongoing Securities and Exchange Commission (SEC) led forensic audit into the affairs of the company.

Oando has cashed into the favourable micro and macro business environment characterised by an increase in national oil production, exchange rate stability, as well as an increase in global oil prices which averaged $66 per barrel in the first quarter of the year, $3 more than the projected average of $63 for 2018 and 2019.

An analysis of Oando’s financials shows that the company’s turnover grew by nine per cent to ₦150.5 billion from ₦138.4 billion in the first quarter of last year; gross profit increased by 108 per cent, ₦27.9 billion compared to ₦13.4 billion; and profit-after-tax increased by 145 per cent, ₦4.2 billion compared to ₦1.7 billion in the first quarter of last year.

In its upstream business, Oando recorded a net profit of ₦8.6 billion ($23.8 million) compared with ₦5.8 billion ($16.2 million) in the comparative period of first quarter of last year.

Speaking on the results, Group Chief Executive, Oando, Wale Tinubu said: “Our first quarter performance was characterised by a stable operating environment, continued incline in crude oil prices, and the highest level of compliance by member countries’ of the OPEC Accord. Considering the background of current industry trends, the Company is committed to maximizing throughput rates to ensure a positive financial performance in the ensuing quarters of 2018.”

A review of other activities pertaining to Oando in 2018 is further evidence that the year has indeed started favourably for the company. In January, Oando reached a peace accord with Dahiru Mangal by officially confirming him as a substantial shareholder of the company and successfully addressing and clarifying all the issues raised by Mangal in his petition to the Securities and Exchange Commission (‘SEC’).

In the company’s official statement on the peace accord the Group Chief Executive, Wale Tinubu said: “…Shareholders must be confident in the operations of the company they are invested in; this can only occur through active participation.’’

According to Chief Compliance Office and Company Secretary, Oando Plc, Ayotola Jagun in an interview with CNBC following the lifting of the technical suspension she said; “On day one, the day the suspension was lifted, 178 million Oando shares were on bid with only 5.5 million available for sale. The company’s share price hit the NSE daily price ceiling of 10 per cent by 10.45 am; further evidence that there is a lot of interest in Oando shares and that the general mood around the market and our shares is positive.”

The company’s share price has witnessed commendable increase since it began trading on the stock exchange, rising from ₦5.99 as at April 11 to ₦9.15 as at close of trade on Monday, April 30.

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