Oando PLC Q1 2017 Results

Oando PLC Q1 2017 Results

Financial Highlights: Turnover increased by 116%, N138.4 billion compared to N63.9 billion (Q1 2016) Gross Profit increased by 53%, 13.4 billion compared to N8.7 billion (Q1 2016) Profit-Before-Tax increased by 207%, N494 million compared to (N461 million) (Q1 2016) Profit-After-Tax decreased by 58%, N1.7 billion compared to N4.1 billion (Q1 2016) Net debt reduced by 29% N225.9 billion compared to N316.6 billion (Q1 2016) Operational Highlights:

    Upstream:
Production in the first quarter of 2017 decreased to 3.4 MMboe (average 38,125 boe/day) compared to 4.5 MMboe (average 49,365 boe/day) in the first quarter of 2016 Approximately 66% of crude production was hedged with 9,590 bbls/day of crude oil production hedged at $65/bbl (average) with expiries ranging from July 2017 to January 2019 and further upside if certain price targets are met
    Midstream:
Concluded the sale of Alausa Power Plant for a transaction price of N4.6 billion
    Downstream:
150% growth in crude and refined product volumes compared to Q1 2016 Increase in turnover to N115.6 billion compared to N4.3 billion in Q1 2016 Increase in secured credit lines by N76.6 billion to a total of N214.4 billion With Brent crude price at $50.74 per barrel and attacks on oil facilities in the Niger Delta, the business environ remains challenging. Vandalism of oil infrastructure led to oil wells being shut-in, decreased production and a downturn in profit. Oando Energy Resources (OER) recorded a production shortfall due to significant reductions in gas production and delivery caused by a ruptured Gas Transmission System (GTS-4) gas line at OMLs 60 to 63. In addition, the Trans Forcados pipeline continued to suffer downtime resulting in reduced production from its Ebendo field. Despite these operational challenges, the Group recorded a N1.7 billion profit in its first quarter due to lower production expenses, decreased finance costs and higher oil prices. Source / More: oandoplc oilandgasOil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook]]>

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