The results showed that despite a challenging local environment, the oil and gas company was able to maintain a trend by posting positive results for the third consecutive year with the announcement of a N28.8 billion profit after tax (PAT), which was 46 per cent increase from the N19.8 billion the company recorded in 2017.
As at full year 2018, Oando’s turnover increased by 37 per cent to N679.5 billion, compared with the N497.4 billion it realised the previous year, driven primarily by higher oil prices which resulted in higher oil revenue and higher gas prices. This led to higher gas revenues.
In addition, its gross profit grew by nine per cent to N96.3 billion in the year under review, from N88.1 billion in 2017.
Also, the total group borrowings decreased by 11 per cent to N210.9 billion, from N237.4 billion in 2017, while long term borrowings decreased by 23 per cent to N76.8 billion compared to N99.6 billion in the same period of 2017.
Worthy of note was the fact that, since its acquisition of ConocoPhillips Nigeria in 2014, Oando has embarked on a proactive drive to significantly reduce its debt and liabilities. From a N473.3 billion corporate facility in 2014 to N210.9 billion at the end of 2018, represented a 55 per cent decrease and in its upstream business, the company has reduced its debt by 70 per cent, from $801.6 million in 2014 to $260 million as at FYE 2018.
Speaking on the significant reduction in borrowings, the Group Chief Executive of Oando, Mr. Wale Tinubu, was quoted in a statement to have said: “Our asset base is delivering strong free cash flows as evidenced by a 70 per cent reduction in our Upstream Borrowings since the closure of our landmark acquisition of Conoco Phillips’s Nigerian assets in 2014.”
The statement added: “The company’s full year 2018 results are further evidence that the management team is focused on maintaining a strong balance sheet, profitability, value creation and a business that is indeed here for good.
“The company’s third year of strong financial performance is evidence that the company is back to business as usual, thus rebuilding stakeholder confidence in the brand as a viable business to invest in.”
Commenting on the results, Alhaji Kabiru Tambari, an Oando shareholder from Sokoto Zone of the Shareholders Association, commended the management of Oando for leading the company to yet another profit, saying: “We can see light at the end of the tunnel. My faith in the management of the company grows from strength to strength with each financial result. I’m hopeful that soon, in the very near future we the shareholders can finally reap the fruits of our labour.”
Tinubu said: “We remain confident in our ability to deliver significant value to shareholders in the years ahead as well as resuming our dividend payments.
“Our 2018 results demonstrate the solid foundation we have built across volatile commodity price cycles, and our ability to deliver profitability despite a challenging local operating environment. Over the last few years, we have developed a reliable platform for future growth through the execution of a corporate strategy designed to streamline our operations, reduce our debt and optimize our asset portfolio.”