Oando posts NGN 7bn profit, promises investors better gains
Nigeria - Corporate - 02-08-2010

Oando Plc, one of the countryquotes leading integrated energy company has pledged better gains for investors in 2010 as it posted a net profit of NGN 6.64bn in its Q3 performance report ended September 2009. This is against NGN 5.56bn recorded in 2008 within the same period. In addition, the period witnessed 107% growth in the Earnings Before Interest, Taxes, Depreciation and Amortization to NGN 20bn compared with NGN 9.5bn recorded within the same period in 2008. The Group Chief Executive Officer of Oando Plc Mr. Wale Tinubu said the results for Q3 2009 once again underscores the robustness of the business. “Through prudent resource management and consistent value creation, we have maintained market leadership in spite of the harsh operating environment created by the global economic crisis, the effects of banking sector reforms and the persistent uncertainties over deregulation of the petroleum industry.”
According to him, Groupquotes outlook remains positive with strong revenue prospects, adding, “Capacity will be created by the gas division, and the captive power plant, expected on-stream before end of 2010, promises to be a strong revenue source”. He said with the planned reinforcement of the companyquotes financial structure and a committed management team, “we will accelerate our activity rate to ensure our objective of a robust year end for shareholders is achieved.” The company has projected a turnover of NGN 596bn, NGN 782bn and NGN 931bn for the years ending 2010, 2011 and 2012 respectively. Net profit for the 3 years have been estimated to be NGN 18bn, NGN 42bn and NGN 59bn respectively while investors are expected to receive dividends of NGN 4.48bn, NGN 5.7bn and NGN 6.2bn in that order. Tinubu said that while the Group continues to show resilience across its different businesses, the years ahead present a very promising outlook. “The Group remains focused on fast tracking monetising its upstream portfolio and an asset that commenced revenue generation in 2009 and which continues to positively impact the Groupquotes bottom-line. OML 125 and 134 are already in production and Akepo and OML 56 are expected to start production in the near future.
Similarly, the Gas and Power division is positioned for superior performance this quarter as its power generation arm; Akute Power Limited will commission its captive power solutions to Lagos Water Corporation with immediate revenue contribution to the Groupquotes bottom line among others.” In 2009 when many stocks suffered depreciation, Oando Plc was the only equity in the petroleum market sub-sector that posted a positive return in terms of capital gain. The stock gave investors 17.8% while others gave negative returns of between 26% and 88%. As the market firms up further, Oando Plc said it is giving existing investors another opportunity for an instant capital gain of about 24% through its ongoing Rights Issue. The company is issuing 301,694,876 ordinary shares of NGN 0.50 each at NGN 70 per share to existing shareholders whose names appeared on the register of the company as at the close of business on 18 December 2009 to raise over NGN 20bn.

Source: Daily Trust