Oando announces H1 2014 Results, Posts N8.9bn Profit-After-Tax

Oando announces H1 2014 Results, Posts N8.9bn Profit-After-Tax

Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced unaudited results for the six months period ended 30June, 2014, with the following highlights:
Financial Highlights:
Turnover decreased by 31%, N194.6 billion compared to N280.3 billion (H1 2013)
Gross Profit increased by 67%, N50.5 billion compared to N30.2 billion (H1 2013)
Profit-Before-Tax increased by 104%, N12.5 billion compared to N6.1 billion (H1 2013)
Profit-After-Tax increased by 110%, N8.9 billion compared to N4.3 billion (H1 2013)
Operational Highlights:
OML 125 production increased by 17% to 651,000bbls, whilethe Ebendo Field (OML 56) production increased by 30% to 171,000bbls compared to prior comparative period
4 years of continuous operations without a Lost Time Incident (LTI) on “OES Teamwork” swamp drilling rig
Construction of 8km extension of Lagos natural gas pipeline network
Completion of Apapa Single Point Mooring (ASPM) Jetty, with expected demurrage cost savings and additional income streams
Commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “ In July 2014, we achieved an unprecedented milestone in concluding the $1.5 Billion acquisition of one of the largest oil and gas players in Africa. The acquisition of ConocoPhillips’ Nigeria Business has significantly increased the scale of our upstream operations, adding four producing onshore licenses (OML 60 to OML 63), two non-producing offshore licenses (OML 131 and OML 145) and approximately 45,000boepd of net working interest production to our growing portfolio. In the space of 18 exciting months, we havesecured our status as a leading indigenous player in the E&P space, whilst maintaining our leadership position in the other spheres of the oil and gas value chain. We are extremely excited about the future of our company, and look forward toreporting our future robust financials, which will evidently show the growth our company has experienced from our underlying assets and a snapshot of our future potential”.
Operational Update
The legacy assets have also made tremendous progress during the course of the year so far.in the Ebendo marginal field, substantial progress has been made in the construction of a45,000bbls/d, 51km evacuation pipeline which will provide an alternative route for crude transport from the Ebendo Field, through the Trans Forcados export pipeline. We successfully completed the fiber optic cable laying and pipeline construction milestones associated with the pipeline, delivery of the project remains on track for December 2014.In the Abo field, production grew by 17% compared to prior year largely due to improved well optimization. We also made significant capital expenditures in Abo 8 and Abo 12 drilling activities, as well as Abo 3 flow line remedial works.Oil production from the Qua Ibo field’s D5 reservoir is expected to commence in the fourth quarter of 2014 after the commissioning of a crude processing facility which is currently under construction and should be finalized in the third quarter of 2014
Oando Energy Services achieved four years of continuous operations without a Lost Time Incident (LTI) on its “OES Teamwork” rig, showing the company’s devotion to ensuring safety in the services sector of the upstream business.
In the midstream, we are extending our natural gas distribution network by 8km from Ijora to the Marina business district in Lagos state, ideally positioning us to benefit from the growing demand for gas and power infrastructure in the country. The pipeline extension guarantees us growth of capacity within Lagos from 85mmscf/day to 115mmscf/day.
Downstream operational challenges remain; however, we have tackled it head on with another unprecedented milestone following the completion of our Apapa Single Point Mooring (ASPM) Jetty. The Apapa ASPM is the first of its kind in Africa and will impact our industry with improved efficiency through substantial cost savings on imports. Lagos currently receives over 80% of white products into Nigeria and at the moment has only 2 terminals. The ASPM jetty was conceived to bypass the infrastructure bottlenecks experienced in the Apapa axis thus eliminating the lightering and demurrage charges currently being incurred by marketers. The jetty is expected to be commissioned in the fourth quarter of 2014.
Source:
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