There are clear signs that Oando PLC is trying hard to return back to profitability as its gross revenue for the first half of the year surged by 29%.
This is because the company grew its revenue from NGN90 billion last year to NGN116,2 billion in the first half of this year. However, the company’s cost of sales was up by 58.4% to 111,2 billion from 70,1 billion spent last year. This is a huge drain on a company struggling to survive.
Oando has shunned all cost on marketing as as the company did not spend a dime om marketing and sales activities for the first half of the year. However, Administrative expenses NGN49 billion is still high when company to last year at NGN27 billion.
However, Oando is still in a loss position and it is increasing from NGN25,95 billion last year to NGN44,5 billion this half year.
Oando Plc. (formerly Unipetrol Nigeria Plc.) was registered by a special resolution as a result of the acquisition of the shareholding of Esso Africa Incorporated (principal shareholder of Esso Standard Nigeria Limited) by the Federal Government of Nigeria.
It was partially privatised in 1991 and fully privatised in the year 2000 following the disposal of the 40% shareholding of Federal Government of Nigeria to Ocean and Oil Investments Limited and the Nigerian public. In December 2002, the Company merged with Agip Nigeria Plc. following its acquisition of 60% of Agip Petrol’s stake in Agip Nigeria Plc.
The Company formally changed its name from Unipetrol Nigeria Plc. to Oando Plc. in December 2003. Oando Plc. (the “Company‛) is listed on the Nigerian Stock Exchange and the Johannesburg Stock Exchange. The Company conducted downstream business through a wholly owned subsidiary named Oando Marketing Ltd (formerly Oando Marketing Plc) and Oando Supply & Trading (OST). Oando Marketing Ltd has retail and distribution outlets in Nigeria, Ghana and Togo.
In addition, the Company has 100% interest in Oando Trading Dubai and Oando Trading Bermuda (OTB). The Group provided energy services to exploration and production (E&P) companies through its fully owned subsidiary, Oando Energy Services during the period. The Group also operates in the E&P sector through Oando Energy Resources Inc. (‚OER‛). Other subsidiaries within the Group include Oando Gas and Power Ltd, Gaslink Nigeria Limited, and Alausa Power Ltd. See
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