Oando has recorded an increase of 110 per cent in profit after tax (PAT) for the half year ended June 30, 2014 The company recorded an impressive N24 billion operation profit and a N9 billion PAT, showing an increase of 145 per cent and 110 per cent from N9.7 billion and N4.3 billion recorded in the corresponding period of 2013.
The directors of recommended a dividend of N1 per share comprising 30 kobo based on 2013 results and 70 kobo interim for the 2014 half year results.
The result is seen as a remarkable for the company after its landmark $1.5 billion acquisition of ConocoPhillips entire Nigerian business, which has transformed its status into Nigeria’s largest indigenous oil and gas producer.
The Group Chief Executive, Oando, Wale Tinubu, credits the performance to restructuring and innovative efficacy. According to him, “Our strategic refocus on the higher margin Upstream foresees immense value add for our stakeholders in the near term. We have succeeded in repositioning ourselves within the sector, and through future acquisitions and innovative efficacy we will seek to up our market share in sub-Saharan’s upstream sector within the next five years to 100,000 barrel of oil equivalent per day (boe/d) in net production.”
With the ConocoPhillips assets acquisition now complete and immediately cash generative, the company’s upstream subsidiary Oando Energy Resources has a total hydrocarbon production capacity of approximately 45,000 boe/d, and expects annual revenue of over $600 million, and annual free cash flows of $150 million.
