Oando Posts N6.6bn Profit

Oando Plc has posted a profit after tax (PAT) of N6.6 billion in the first half of 2012 down from N6.9 billion recorded during the same period of 2011 indicating a four per cent drop.

However, the company’s turnover surged by 31 per cent as it recorded N350.6 billion up from the N267.8 billion recorded within the same period in 2011. Its gross profit rose by eight per cent to N33.9 billion compared with N31.5 billion last year while profit before tax (PBT) dropped by 20 per cent to N10.4 billion from N12.9 billion, according the company’s half year result.

According to the report, Oando Exploration and Production completed the drilling of a second well in the Obodeti-Obodugwa field and has received date for the completion of the Reverse Take Over (RTO) of Canadian listed Exile Resources Inc to create Oando Energy Resources Inc. It has also executed a farm in agreement to acquire a 40 per cent participating interest in the Que-Iboe Marginal field (OMLIZ).

Oando Energy Services (OES), another subsidiary of the Oando group, its fourth rig commenced extensive refurbishment programme in anticipation of starting a swamp drilling contract with an International Oil Company (IOC) in 2013, the report said.

It added that Oando Gas and Power ( OGP), also a subsidiary of the group, has commenced commercial operation onthe EHGC pipeline to flow gas to its anchor customers.

According to the company, when the N97 PMS pump price was set its operations across the country regularised in the second quarter and added that its liquefied petroleum gas (LPG) strategy continues to gather momentum with the delivery of over 343,000 cylinders.

The Group’s Chief Executive, Mr Wale Tinubu, in his remark said, “We are pleased to report our half year performance for 2012.

The year so far has experienced significant development across the oil and gas sector, we remain steadfast in our commitment to grow our businesses in line with our strategic focus.”

He expressed optimism over the industry in the second half of the year and noted that, “we will continue to deliver  on our operations and our proposed initiatives for added value creation to our shareholders.”

Oando Plc is an indigenous energy group listed on the Nigerian Stock Exchange (JSE) and intends to list its upstream subsidiary on the Toronto Exchange.

Vivian-Peace Nwinaene