Good news is finally here for Oando’s shareholders. Oando finally posted a net profit of NGN3.5 billion after two straight years of record losses.
Total revenue for the full year 2016 rose by 49% to NGN569.0 billion compared to NGN382.0 billion posted for the full year period of 2015.
Part of the highlight for the company in 2016 was a completion of the partial divestment of 49% of the voting rights in the company’s midstream business subsidiary, Oando Gas and Power Limited, to Glover Gas & Power B.V., a special purpose vehicle owned by Helios Investment Partners LLP, a premier Africa-focused private investment firm for USD115.8 million.
Its subsidiary, Oand Gas and Power, concluded the sale of Akute Independent Power Plant for a transactional value of NGN4.6 billion.
An elated Wale Tinubu, Group Chief Executive, Oando PLC said: “2016 saw the country plunge into a recession, the first in over 2 decades, besieged with liquidity constraints, devaluation of the naira and a slump in oil earnings due to low oil prices intensified by the insurgency in the Niger Delta. We were proactive in the timely execution of our restructuring program of Growth in our upstream division; Deleverage, through divestments resulting in a net debt reduction of N125bn; and Profitability by focusing on dollar-denominated earnings.
He explained that “In the, upstream we witnessed a decline in production but an increase in our 2P Reserves from 445mmboe in 2015 to 469mmboe. We are hopeful that the FGN will establish a long-term resolution to the conflict in the Niger Delta which will positively impact the oil and gas industry, consequently ramping up our daily production. In the Midstream we concluded the partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners to further expand our gas footprint, whilst in the Downstream our trading business continued to make in-roads in crude lifting. As we enter a new phase in our business evolution we are optimistic about 2017 and look forward to evening more successes having braved the challenges of 2016.”
Onado is an indigenous oil company in Nigeria with a dual listing on the Nigerian Stock Exchange and the Johannesburg Stock Exchange.