Nigeria's Oando Records 4% Increase in Profits for First Half 2009
Oando has announced a N3.8bn profit (near US $24 million) for the six-month period ending June 30, 2009, representing a 4% increase over the same period in 2008. Against the background of the global economic downturn, the profit underlines Oando's resilience, and vindicates its diversification and growth strategy.
Commenting on the results, Oando CEO Wale Tinubu said, "We are delighted to present results which reflect our resilience in a highly volatile business environment characterised by; global economic downturn, uncertainties in policy direction of government with respect to deregulation of the petroleum industry and non performance of the Petroleum Subsidy Fund (PSF). As usual, our non-marketing businesses continue to steadily impact on the company's performance, particularly the gas division with the expansion of the Greater Lagos natural gas distribution network, whilst, the leadership of our Marketing and Supply & Trading divisions continues to deliver sustained value to the group."
Over the past year, Oando made significant investments in energy services and upstream operations, investing N73bn in fixed assets.
Oando has continued to pursue efficiency in cash management resulting in a robust cash and bank balance of N44bn. Long term liabilities remained at N48bn.The traditional downstream businesses continued to make substantial contributions to the Group's performance during the period. Although the Nigerian Federal Government's attempt to remove the petroleum subsidy took its toll on our marketing businesses, the division was able to perform above prior year levels.
Commenting further, Tinubu said, "This quarter recorded a number of significant investments to consolidate our diversified platform, paramount of these was the acquisition of two additional rigs that saw us emerge as Nigeria's indigenous largest drilling services provider with a fleet of five rigs. With our East Horizon Gas Project and Lagos captive power plant initiative at near-completion stages; our rigs securing long term contracts; and the monetization of our producing oil fields; we look forward to more robust result in future."
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