News around Africa - July 27, 2018

Oando records N8.5bn profit after tax in the first half of 2018

July 27, 2018

3 min read

Oando Plc has recorded N8.5bn profit after tax (PAT) in the first half of 2018 financial year, an increase majorly driven by the spike in price of crude oil and gas commodities in the global economy.

According to the financial report presented by Mr. Wale Tinubu, Group Chief Executive, Oando Plc, the analysis infer that the company’s turnover grew by 11 per cent to N297.3 billion from N267 billion in the first half of 2017; gross profit increased by 53 per cent to N51 billion compared to N33.4 billion in the first half of 2017 while profit-after-tax increased by 86 per cent to N8.5 billion compared to N4.6 billion in the first half of 2017 financial year. In its upstream business, Oando also recorded a net profit of N27.1 billion ($75.2 million) compared with N16.3 billion ($53.2 million) in the first half of 2017.

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Speaking on the report, Wale Tinubu explained that the increase in net income between the quarters was primarily due to higher revenues because of a general increase in the price of oil and gas commodities.

“I am pleased to report that Oando Plc has made significant progress in 2018, evidenced by our substantial free cash flow generation and profitability. “Oil prices have rallied over the last year, a direct consequence of increasing demand and reduced supply. Higher oil prices and the resolution of Joint Venture funding challenges with the Nigerian National Petroleum Corporation has driven increased investment in the upstream sector.”

Alhaji Kabiru Tambari, an Oando shareholder with the Sokoto Zone Shareholders Association also commented on the 2018 financial report saying: “This result reaffirms my commitment to the management of Oando. Seven quarters of profits in a row is no small feat. Not all companies who have gone through what this company has gone through in the last year would be able to come out this strong. I commend the management team and I hope they continue the good work.”