Oando declares N19.8 billion profit, performance rising

Nigerian oil company, Oando. [Photo credit: Guardian Newspaper]
Nigerian oil company, Oando. [Photo credit: Guardian Newspaper]

Oando has once again boosted shareholders confidence by publishing a N19.8bn profit after tax in its FYE 2017 financial results. Five quarters in a row. The company has sustained its trend of posting positive results.

Many would have thought that the Securities and Exchange Commission’s (SEC) investigation into the company, technical suspension of the company’s shares on the Nigerian Stock Exchange (NSE), and the full suspension of free trading of its shares on the Johannesburg Stock Exchange (JSE) in 2017 would negatively impact operations and in turn the financials of the company but this hasn’t been the case.

The company once again defied the odds to post profits 405% higher than the year before.

In its FYE 2017 results, Oando achieved a turnover 13% lower than the comparative period in 2016, N497.6 billion versus N569.2 billion.

Despite this slight decrease in turnover the company was able to achieve positives on all other indices.

The company’s gross profit increased by 81% to N88.1 billion compared to N48.6 billion in FYE 2016; its net debt reduced to N217.1 billion from N230.6 in the comparative period of 2016; and a profit-after-tax of N19.8 billion, 405% increase from NN3.9 billion in same period of 2016.

Following the volatility in oil prices, and losses experienced by many sector players not so long ago, it must be with a sense of relief that both investors and shareholders in the sector receive these positive results. Oando’s results must be particularly pleasing as it is a reinforcement of the CEOs promise to bring the Company back to profitability.

2018 is already looking good for the company.

Oando’s positive activities, coupled with the rise in crude oil prices to just over $70 these past months cannot be ignored. Recently, the SEC gave the directive to lift the technical suspension placed on the company’s shares after 175 days.

In barley three hours of trading after the technical suspension was lifted, 178 million Oando shares were on bid with only 5.5 million available for sale. The company’s share price hit the NSE daily price ceiling of 10% by 10.45 a.m. on its first day of trade and was of the top gainers on the NSE index. As at Friday, 27 April 2018 when the company released its FYE results its share price had reached N9.15, a 65% increase in 21 days.

The tide has definitely turned for the company. With the commitment of its current management team, it’s continued agility and perseverance, oil prices continuing on an upward trend and the local operating environment remaining positive, the company is assured of even greater successes.

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