Indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchanges, Oando Plc, has announced a profit after tax of N4.1bn for the three-month period ended March 31, 2016.
The results were delayed due to what the company described as an exhaustive audit process overseen by external auditors, Ernst & Young.
The firm noted in a statement that extension approvals regarding the financial statements were sought and received from the Securities and Exchange Commission and the Financial Reporting Council.
For the financial year ended December 31, 2015, the group reported a revenue of N161.50bn as against N92.91bn in 2014.
The group loss before income tax was N32.74bn as against a loss of N88.73bn recorded in 2014.
The N4.1bn profit after tax for the first quarter of 2016 represents 120 per cent increase compared to a similar period of 2015. The company’s financial highlights also indicate that turnover decreased by 34 per cent, with N64bn realised in the first three months of 2016 compared to N97.1bn for the same period last year.
Global crude pricing fluctuation, the firm said in a statement, had changed the corporate landscape for oil companies, and “has had far-reaching economic implications on Oando and many other indigenous firms in the industry.”
According to the firm, the Q1 results are a welcome contrast for investors and shareholders alike following its dismal 2015 financial performance, which was significantly impacted by impairments and foreign exchange pressures.
Commenting on the performance, the Group Chief Executive, Oando Plc, Mr. Wale Tinubu, highlighted the company’s drive to ensure profitability going forward.
He said, “This first quarter of 2016 demonstrates our dedication to return our business to profitability by the end of the year. We have implemented constructive corporate initiatives, which are driving forces for our business in this new global reality of economic restraint and lower oil prices in our industry.
“The successful and ongoing implementation of these initiatives reiterates our strategy of growth, deliverables and a return to profitability by the end of 2016.
He added, “As a group, we have placed our focus on growing our upstream higher margined business, while still holding fundamental interests in the midstream and downstream sectors. We look forward to a rewarding year, where we will solidify our aspirations and return to profitability.”
As oil prices gradually increased, Oando said it commenced 2016 with a reinvigorated strategy hinged on key corporate initiatives to drive the company back to profitability and ensure fiscal efficacy.
To optimise its balance sheet, the company said it focused on aggressive debt reduction and recapitalisation.
The group said it had successfully restructured its existing debt through a N94.6bn medium-term note with a local consortium with lower interest rates and a renewed five-year tenor.
Its upstream subsidiary, Oando Energy Resources, completed its 2015 year-end summary of reserves, recording a six per cent growth in 2P net reserves from 420.3 million barrel of oil equivalent to 445.3mmboe.
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