By Abdulquddus OKELE InvestAdvocate
Lagos (INVESTADVOCATE)-Dual listed oil marketing major, Oando Plc late Friday posted an impressive result as it reported profit after tax (PAT) for the period ended December 31, 2017 grew 405 percent to N19.8 billion from N3.9 billion recorded a year ago.
Gross profit increased 81 percent to N88.1 billion in 2017 compared to N48.6 billion posted the same period of 2016.
The company declared a turnover of N487.6 billion in the review period compared to N569.2 billion declared in the corresponding period of 2016.
This is coming on the heels of rising oil prices which closed at almost $68 dollar per barrel according to MarketWatch, published by Dow Jones & Co., which tracks the pulse of markets for engaged investors.
As Oando sustains a five quarter in a row trend of posting positive results, despite the slight decrease in turnover the company was able to reduce its net debt to N217.1 billion from N230.6 in the comparative period of 2016.
“2017 was an important and positive milestone for the Company. The business recorded a year-end profit of N19.8 billion; a culmination of 4 consecutive quarters of positive results, validating our promise to shareholders of returning to and maintaining profitability.
This comes in the wake of oil prices on an upward trajectory, an improved operating environment,the exit of a 13 month long recession and most importantly the continued strengthening of our business model through the effective implementation ofour strategic initiatives of Growth through our dollar earning upstream portfolio; Deleverage through asset divestments and the expansion of our oil export trading business.
Against this backdrop we experienced challenges; the most significant being the Securities and Exchange Commission’s (SEC) investigation into the Company which led to the technical suspension of free trading of our shares on the Nigerian and Johannesburg Stock Exchanges and the instituting of a forensic audit; we have and continue to provide full support to the SEC and are hopeful of a smooth and speedy conclusion.
We have commenced 2018 buoyed by our unrelenting commitment to our strategy and remain confident in its success.” Wale Tinubu, group chief executive of Oando said while commenting on the results.
It has continued to be all positives for Oando following the lifting of the technical suspension by the Securities and Exchange Commission (SEC), shares of the oil marketing major on its first day of trade, the company emerged the top gainer on the Nigerian Stock Exchange (NSE).
Oando at the close of Thursday April 12, 2018 trading; the first trading session after the suspension led 20 gainers as compared 23 losers on the NSE.
That week it emerged one of the top weekly gainers as reported by InvestAdvocate on the floor of the Nigerian bourse, shares of the company at the close of that week’s trading on the domestic bourse appreciated 15.19 percent to N6.90 from N5.99 traded the previous week, thereby gaining 91 kobo per share.
As at Friday, 27 April 2018 when the company released its 2017 results its share price had reached N9.15 a 65 percent increase in 21 days.
