Oando Nigeria Plc has recorded N383.5billion turnover in its third quarter (Q3) operations, against N329.9billion achieved in the corresponding period in 2016.
Specifically, the company’s unaudited result for the nine months ended September 30, 2017 showed 16 per cent rise in turnover to N383.5billion from N329.9billion.
The company’s gross profit also increased by 148 per cent from N28.6billion to N71.2billion while profit-after-tax grew by 120 per cent to N7.1 billion from a loss of (N35.8billion) in Q3 2016.
Oando attributed the improved performance to the continued implementation of the firm’s strategic initiatives of growth through dollar earning upstream portfolio; deleverage through recapitalisation and asset divestment, as well as the expansion of its oil export trading business.
Oando’s Group Chief Executive, Wale Tinubu, said: “After five consecutive quarters of contraction, Nigeria’s official exit from the recession buoyed by improved performance in the oil, agriculture, manufacturing and trade sectors of the economy is laudable news.
“The continued increase in oil prices to a 2017 high of $58 in September, coupled with ongoing peace efforts in the Niger Delta has significantly impacted our fourth successive profit declaration.”
He continued: “Oando continues to keep to the promise it made to shareholders during its 39th annual general meeting in 2016 with the declaration of its fourth consecutive profit. The company was proactive in its approach to cushion the effect of the oil downturn by immediately implementing its strategic growth initiatives.”
Tinubu added that “the proceeds from the business restructuring and asset sales have been successfully used to improve the company’s balance sheet with a reduction of N18billion in debt position from N247billion as at December 2016 to N229billion today.”
According to him, the firm’s results defy the speculation of many who watched the company and its management comes under scrutiny in the past months. It also came as a relief to aggrieved shareholders who have, in the past months, expressed their dissatisfaction with the damage the Security and Exchange Commission (SEC) probe caused to brand value and the company’s share price.
“However, these results prove the company can look forward to an optimistic future. In 2015, Oando concluded the recapitalisation of its downstream business with a consortium of Helios Investment and Vitol Group for $210 million.
“The partnership reinvigorated Nigeria’s downstream sector to create one of Africa’s largest downstream operations. Oando further divested its midstream business now known as Axxela to Helios partners for $115.8million to increase its gas footprint,” Tinubu said.
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