By InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s oil marketing company, Oando Plc on Friday declared a loss of N49.7 billion in its audited report for the period ended December 31, 2015 compared to a loss of N145. 6 billion recorded a year ago.
Similarly, the oil marketing firm reported a loss before tax of N32.7 billion compared to N88.7 billion posted in the same period of 2014.
However, revenue climbed up 73.8 percent to N161.5 billion from N92.9 billion recorded the corresponding year of 2014, Oando said in a filing with the Nigerian Stock Exchange (NSE).
Similarly, the oil marketing major said its profit after tax (PAT) for the first quarter (Q1) period ended March 31, 2016 was N4.10 billion compared to a loss of N20.9 billion recorded a year earlier.
The company posted a loss before tax of N18.6 billion compared to N15.5 billion declared in the same period of 2015.
In the same vein, revenue dropped 9.5 percent to N27.7 billion from N30.6 billion declared in the Q1 of 2015.
Below is the Group Chief Executive’s reaction to the report:
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “2015 remained a turbulent year for the global oil and gas industry as business models had to be altered to enabl e industry players survive this new reality , by focusing on cost optimisation , increas ing operational e fficie n c y a n d down s c alin g c a pit al e x p e n dit u r e . T his r e – e v alu a tio n o f o u r business has resulted in the execution of strategic initiatives, which we are confident will return our business to profitability in the short – term in 2016, with Growth through our dollar earning upstr eam portfolio, D eleverage t hrough recapitalization or asset divestments, and P rofitability hinged on refocused dollar oil export trading business”.
Operational Update
Oando Energy Resources increased its total production to 20 million barrels of oil equivalent (mmboe) in 2015 period compared with 9.1 mmboe in 2014. The increase between the annual periods was primarily from the acquisition of OMLs 60 – 63 in H2 2014, as well as the commencement of production from the Qua-Iboe field in Q1 2015.
OER successfully realized a cash inflow of $234 million by resetting its crude oil hedge from the previously hedged average of $95.35 per barrel to a new price of $65.00 per barrel on 10,615bbls/day till July 2017 and an additional 1,553 bbls/day until January 2019. The proceeds of the hedge reset along with cash in hand were used to pay down substantial portion of our debt.
Oando Energy Services (OES) successfully deployed OES Respect into a 2 year, with 1 year extension contract with an IOC in October 2015. OES achieved five and three years of continuous operations with a Zero Lost Time Incident (LTI) on two of its four rigs, “OES Teamwork” and “OES Passion” respectively. We continue to consistently demonstrate our commitment to world class operating standards, with the proactive use of our EHSSQ and operational processes.
Oando Gas & Power (OGP) as at December 2015 had completed 87% of the Greater Lagos Phase 4 pipeline project which runs from Ijora to Bonny Camp in Lagos state, the project involves the deployment of Horizontal Directional Drilling (HDD) technology across three rivers on the Marina axis, is expected to be completed by the end of Q3 2016. OGP also commenced an 8.5km pipeline expansion project for the Central Horizon Gas Company, the expansion project which is expected to extend the pipeline from 8.3km to 16.8km and increase CHGC’s capacity to 70mmscf/day, is to be completed in 2016. In line with our strategy to Build, Operate and Transfer in the gas and power business, we signed the Sales and Purchase Agreement (SPA) for Akute divestment effective end of August 2015. The divestment process has been completed as at Q1 2016.
Click here to download Oando Plc 2015 Audited Report
