Oando recorded another victory with the successful conclusion of its 41ST Annual General Meeting (AGM) which held on Friday, July 27 at the Eko Hotel and Suites, Lagos. On the eve of the AGM, Thursday, July 26, the company published its H1 2018 results recording N8.5 billion profit-after-tax.
Shareholders at the AGM were united in their support for the company and applauded the management team for restoring market confidence by maintaining a track record of growth over the last 18 months culminating in the achievement of N8.5 billion PAT in H1 2018, the company’s 7th quarter consecutive profit.
Shareholders went on to encourage management to keep up the good work and avoid distractions and distractors intent on destroying the company’s reputation and eroding shareholder value.
Speaking at the AGM Adebayo Adetunji Adeleke an Oando Shareholder commended management for transforming Oando from a downstream company to a dollar earning upstream focused business. He further said: “The profit declared in H1 2018 has given us hope, I am optimistic that with hard work the company will continue in this stead. I want to commend Oando on the impact of our Corporate Social Responsibility activities, we are touching lives, hundreds of thousands oflives and these same people are praying for the company therefore we will not go down.”
The company’s profits swelled as oil prices increased. An analysis of Oando’s financials shows that the company’s turnover grew by 11% to N297.3 billion from N267 billion (H1 2017); gross profit increased by 53% to N51 billion compared to N33.4 billion (H1 2017); and profit-after-tax increased by 86% to N8.5 billion compared to N4.6 billion (H1 2017). In its upstream business, Oando recorded a net profit of N27.1 billion ($75.2 million) compared with N16.3 billion ($53.2 million) in the comparative period of H1 2017.
According to the company’s statement, the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities. Oando 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. Oando’s performance was further buoyed by sale price increases of 19% for NGL and 13% for natural gas deliveries.
Tunde Badmus another shareholder said: “Oando has survived all odds and is still strong. I am confident the journey of the company will lead to victory for all. I commend the management for being prompt to respond to issues concerning the business operations. We pledge to continue to support you.”
All resolutions passed at the AGM were approved including the re-appointment of Ernst and Young as auditors, the Directors were authorized to fix the auditors remuneration; appointment of Alhaji Bukar Goni Aji and Mr. Muntari Zubairu to the Board of Directors; election of audit committee members, and approval of the remuneration of non-Executive Directors.
Sola Abodurin spoke on the efforts being made by management in reducing the company’s debt. He said: “I thank the Board of Directors for the efforts they’ve made to face challenges. About two years ago, if you looked at our debt profile, you’d wonder how the company would survive. But today, we’ve not only survived, we have drastically reduced our debt by over 50%. I appreciate the Board for the restructuring initiatives put in place when oil prices fell to keep the company going. If there are other initiatives you can embark on to keep the company growing from success to success, I urge you to take them on. Thank you for giving hope to the hopeless with the adoption of schools across Nigeria and the various CSR projects you’ve embarked on.”
In his closing remarks, Wale Tinubu, the GCCE, Oando PLC, assured the shareholders of management’s commitment towards creating value for and protecting the interest of all shareholders: “We are pleased that your Company has shown resilience during the difficult times and is now on track for sustained growth. We will continue to evolve in the energy space to ensure that even when today’s energy products becomes less attractive, we have already made the investment for tomorrow. The interests of you, our esteemed shareholders, is paramount to us and we remain focused on growing profitability to ensure adequate returns accrue to you.”