The Chief Executive Officer (CEO) of Oando Plc, Mr. Wale Tinubu last Friday said the company would soon begin to deliver returns to shareholders.
Tinubu, who stated this at the annual general meeting (AGM) of the company in Lagos, said despite the challenging yet improving operating environment, the company remained bullish on its prospects for the future and ability to grow as a business.
“The initiatives executive over the past years have shifted our assets portfolio towards an optimum and efficient level to provide the returns our shareholders deserve. We look forward to a fruitful 2018 when those initiatives begin to deliver the expected returns and in turn grow shareholder value,” he said.
Meanwhile, Oando Plc has reported a profit after tax (PAT) of N8.5 billion for the half year(H1) ended June 30, 2018, showing an increase of 86 per cent from N4.6 billion recorded in the corresponding period of 2017.
Commenting on the results, Tinubu 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. 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.”
The company’s performance in the first half of 2018 is a continuation of the strong financial performance delivered last year and in the first quarter of 2018. Oando continues to increase its market share in the downstream sector through its trading business, Oando Trading (OTD). OTD recorded average trading volumes of 8.1 million bbl in the six months ended June 30, 2018 with a total of 6.6m barrels of crude oil and 195,497 MT of petroleum products traded in the first half of the year.
Speaking on the outlook for second half of the year, the CEO said: “We will continue to drive growth and profitability via our dollar earning portfolios. Our plans in the upstream involves production growth via investment in targeted profitable projects whilst maintaining fiscal prudence, to ensure we remain less sensitive to short-term price fluctuations. In our Trading business, current plans for growth include expansion of our trading structures in Africa, capitalizing on expanding scope in Southern and East Africa, as well as developing key supply mechanisms into the Middle East and North Africa.”