The 46 percent post-tax profit recorded by Oando in the review period beat market expectations., a further review of the nine-month period 2018, gross profit of the company appreciated nine percent to N77.6 billion from N71.2 billion in posted in the same period of 2017.

“Today’s positive result is further evidence of the progress made by Oando in 2018 driven by our continued focus on execution and operational efficiency, supported by buoyant commodity prices.”

Thanks to good operational efficiency, these results confirm Oando’s ability to take full advantage of the improved macro environment to deliver on key corporate imperatives of increased revenues and profit to create value for her shareholders. As the year draws closer to an end the management of Oando must be applauded for their dedication to keeping the company on course by delivering yet another consecutive quarter of strong financial performance,”. Adewale Tinubu group chief executive, Oando said in a statement.

According to company, in the exploration and production sector, it’s upstream subsidiary, Oando Energy Resources made a stellar performance as it benefited from the ramp-up of higher margin production resulting in a 45 percent increase in realized crude selling price compared with the same period in 2017.

“Performance was further buoyed by sale price increases of six percent for Natural Gas Liquids and 31 percent for natural gas deliveries,” the statement added.

The company reported in the downstream, it traded over 10 million barrels of crude oil and ensured petroleum products efficiency through the importation of 445,483MT of refined products. An improved cash flow led to a reduction in the Group’s total borrowing with a reduction in total borrowing from N237.4 billion in the nine months ended September 2017 to N227.1 billion in the same period of 2018. These numbers further reinforce the success of Oando’s ongoing initiatives to create value for stakeholders, and drive sustainable growth.

 “The outlook for the remainder of the year is positive and we remain committed to delivering on our value-based strategy towards improving our liquidity by reducing our gearing, improving our profitability by increasing production, and achieving growth via strategic alliances,” Tinubu affirmed.

Oando said in the third quarter of this year, in collaboration with its Joint Venture partners, it has commissioned a 20,000 gallon water scheme for the over 5,000 residents of Agbere Community, Bayelsa State, in the process reducing the number of Nigerians without access to clean portable water. 

Similarly,  in the Aggah community in Rivers State the company commissioned asphalt road and drainage projects, alongside their JV partners, NNPC & NAOC. Other community projects commissioned include roads and drainage in Irri Community, Isoko South Local Government Area of Delta State and in the Oguta Community, Imo State.

The company said to be committed to Nigeria’s content development, ran in collaboration with their JV partners, NAOC and NNPC a series of content development workshops in Yenagoa, Bayelsa State. These workshops, carried out in partnership with the Nigerian Content Development Monitoring Board (NCDMB), focused on compliance best practices, procurement regulations and business financing strategies to help improve the quality of output from local contractors as well as the promotion and development of in-country capacities for the industrialization of Nigeria.

On the future outlook for the company, Tinubu explained that the company would build on this performance in the coming quarter as well as step up organic and inorganic development activities across its existing portfolio.