Nigeria’s Oando Plc said its profit after tax for the first half of the year rose by 86%, N8.5 billion compared to N4.6 billion post last year.
Revenue for the integrated energy company increased by 11%, N297.3 billion compared to N267.0 billion disclosed last year.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said: “I am pleased to report that Oando PLC has made significant progress in 2018, evidenced by our substantial free cash flow generation and profitability. Oil prices have rallied over the last year, a direct consequence of increasing demand and reduced supply. Higher oil prices, and the resolution of Joint Venture funding challenges with the Nigerian National Petroleum Corporation has driven increased investment in the upstream sector.
He added that “This stable operating environment, coupled with our fiscal prudence, has reinforced our solid financial footing as we continue to build on the momentum garnered in 2017.”
Oando noted in the result that the first half of 2018 picked up on the industry recovery witnessed in 2017. Brent prices averaged $69.87 per barrel, resulting in a 38% increase in realized crude selling price compared to the same period in 2017.
Performance was further buoyed by sale price increases of 19% for NGL and 13% for our natural gas deliveries. OER recorded a cumulative production of 6.8 million barrels of oil equivalent compared to 7.2 million barrels in the same period of 2017, primarily due to storage constraints and downtime on well 7 at our Ebendo field in OML 56. We also witnessed reduced gas production due to shut-ins suffered at OML 60-63 as a result of repairs and maintenance. Capital Expenditures of $24.7 million (N8.9 billion) were expended in H1 2018, compared to $15.9 million (N4.9 billion) in 2017.
These were primarily maintenance CAPEX focused on drilling activities and facilities maintenance as well as exploration