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Oando’s turnover climb to N330bn in 9 months

Oando Plc has announced a turnover of N330 billion for the nine months ended September 30, 2016, an increase of 26 per cent when compared to N262 billion recorded in the same period of 2015.

The company, listed on both the Nigerian and Johannesburg Stock Exchange, said its gross profit decreased by 52 per cent to N28.7 billion compared to N60.0 billion in the corresponding period of 2015. Its loss-after-tax decreased by 25 per cent to N35.9 billion compared to N47.6 billion recorded in the nine months of 2015.

On the upstream, Oando Energy Resources (OER) during the nine months ended September 30, 2016 recorded a 20 per cent decrease in total production of 12.0 MMboe (average 43,617 boe/day) compared to 15.1 MMboe (average 55,154 boe/day).

On the midstream, the Oando Plc signs definite agreement to divest 49 per cent voting rights in Oando Gas and Power (OGP) to Helios Investment Partners for $115.8 million The company explained that OGP achieved 59 per cent completion in Central Horizon Gas Company (CHGC) Pipeline Expansion Project, while it achieved 93 per cent completion in Greater Lagos 4 Project.

Oando said significant progress has been recorded on the downstream, through the exportation of Nigerian crude oil and petroleum products, while over 11Mb of crude oil, 213,000 MT of refined petroleum products has been exported year-to-date.

Reacting on the result, chief executive officer of Oando, Mr. Wale Tinubu, said the third quarter witnessed the federal government’s ceasefire with the militants responsible for production disruptions in the Niger Delta, leading to stabilised daily productions from our assets and expectations of imminent increases to 2015 production highs of 56kbbls/day.

Tinubu said “We have also been proactive in our cost management initiative to ensure maximised value extraction for every barrel of oil produced as the global oil price still lingers below $50/bbl.”