Oando PLC has announced audited results on the Nigerian Stock Exchange platform for the year which ended on December 31, 2016, with the following highlights:
The Company recorded a turnover increased by 49%, which is N569.0 billion compared to N382.0 billion in Fiscal Year End.
Earnings Before Interest, Taxes, Depreciation and Amortisation, increased by 51%, N71.0 billion compared to N47.0 billion Fiscal Year End(FYE) 2015.
Profit-After-Tax increased by 107%, N3.5 billion compared to a loss (N47.6 billion, FYE 2015.
Net debt reduced by 35%, N230.6 billion compared to N355.4 billion (FYE 2015)
Oando Energy Resources, during the year ended on December 31, 2016 recorded a 20% decrease in total production to 15.9MMboe (average 43,503 boe/day) from 19.9MMboe (average 54,520 boe/day) in comparative period of 2015.
Approximately 46% of crude production as at December 31, 2016, 9,590bbls/day was hedged at $65/bbl (average) with expiry dates ranging from July 2017 to January 2019, and further upside on the condition of certain price targets being met.
- 2P Reserves increased by 5% from 445mmboe in 2015 to 469.3mmboe due to reservoir performance
- Oando concluded the sale of its interests in OMLs 125 and 134 to the Operators for cash proceeds of $5.5m and assumption of $88.5m in cash call liabilities due to the joint ventures.
- Oando completed the partial divestment of 49% of the voting rights in the company’s midstream business subsidiary, Oando Gas and Power Limited, to Glover Gas & Power B.V, a special purpose vehicle owned by Helios Investment Partners LLP , for $115.8 million.
- Oand Gas and Power concluded the sale of Akute Independent Power Plant for a transactional value of N4.6bn.
Oando successfully concluded the recapitalisation of its downstream business for $210 million by HV Investments II B.V., a joint venture owned by Helios Investment Partners , a premier Africa-focused private investment firm and the Vitol Group, the world’s largest independent trader of energy commodities.
Oando Trading witnessed continued growth resulting in a 106% increase in traded volumes of Crude Oil and Refined Petroleum Products, accomplished through a number of structured and well executed initiatives.
Physical volumes of 13 million barrels of crude oil and 1.3 million MT of refined petroleum products were transacted.
Trading revenues hit a four-year high at $1.4 billion.
According to a statement by the company, “volatility in oil prices continues to impact the balance sheet of oil companies globally,’’ saying this is evident in a decline in the company’s crude oil and natural gas sales in the year ended December, 2016.
The statement further said that unrest in the Niger Delta forced a reduction in Oando’s production, specifically sabotage activities at OMLs 60 to 63 and a Force Majeure on the Qua Iboe terminal, resulting in losses estimated at 11,600bbl/d.
However, the company said it had been able to manoeuvre these challenges and achieved successes in the year, as witnessed by an improvement in top line revenue.