Oando Plc has reported a rise in its turnover to N383.5 billion during the third quarter of the year. According to the company, this represents 16 per cent rise from N329.9 billion in comparative period of 2016. Other highlights put gross profit at N71.2 billion from N28.6 billion while profit-after-tax increased by 120 per cent to N7.1 billion from a loss of (N35.8 billion) in Q3 2016.
According to the company the economic recovery is also evident in the third-quarter results of the financial sector as Access Bank declared N365 billion earnings, a 33 per cent increase from N275 billion in same period in 2016, while FBN Holdings declared N45.8 billion, up by 5.2 per cent from N417.4 billion in Q3 2016 amongst others.
Commenting on the results Wale Tinubu, its Group Chief Executive, said “After five consecutive quarters of contraction, Nigeria’s official exit from the recession buoyed by improved performance in the oil, agriculture, manufacturing and trade sectors of the economy is laudable news. The continued increase in oil prices to a 2017 high of $58 in September, coupled with ongoing peace efforts in the Niger Delta have significantly impacted our 4th successive profit declaration.”
Oando continues to keep to the promise it made to shareholders during its 39th annual general meeting in 2016 with the declaration of its fourth consecutive profit. The company was proactive in its approach to cushion the effect of the oil downturn by immediately implementing its strategic growth initiatives.
Tinubu said: “Our third quarter financials are reflective of the continued implementation of our strategic initiatives of growth through our dollar earning upstream portfolio; deleverage through recapitalisation and asset divestments and the expansion of our oil export trading business. The proceeds from our business restructuring and asset sales have been successfully used to improve our balance sheet with a reduction of N18 billion in our debt position from N247 billion as at December 2016 to N229 billion today.”
Oando’s results defies the speculation of many who watched the company and its management come under scrutiny in the past months. It also comes as a relief to aggrieved shareholders who have in the past months expressed their dissatisfaction on the damage the SEC probe caused to brand value and the Company’s share price.
However, these result prove the company can look forwards to an optimistic future. In 2015, Oando concluded the recapitalization of its downstream business with a consortium of Helios Investment and Vitol Group for US$210 million. The partnership reinvigorated Nigeria’s downstream sector to create one of Africa’s largest downstream operations.Oando further divested its midstream business now known as Axxela to Helios partners for US$115.8 million to increase its gas footprint.
Speaking on the future of the company, Tinubu said; “Our tenacity to continuously create value despite prevailing headwinds is evident in our improved performance four quarters in a row;we remain optimistic about our future performance and focused on delivering robust returns to shareholders.’’
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