Oando Plc, an indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange has announced unaudited results for the nine months period ended September 30, 2019,(Q3’19) recoding Profit After Tax , PAT of N13.1 billion, an increase of 26 percent compared to N10.4 billion in the same period in 2018 (Q3’18).
The total Group borrowings for the period stood at N193.1 billion, an 8 per cent decrease from N210.9 billion in the full year, 2018 whilst in its upstream its borrowings reduced by 13 per cent to $222.0 million compared to $255.6 million in the full year, 2018.
According to the financial statement sent to the Nigerian Stock Exchange, NSE, the Company recorded an 18 per cent decrease in turnover to N413.8 billion compared to N505.1 billion Year to Date, YTD September 2018.
Commenting on the results, Wale Tinubu, Group Chief Executive, Oando Plc said: “In the period under review, we made substantial progress on our top priority of operational growth and recorded an 8 percent increase in hydrocarbon production. In conjunction with our partners, we successfully completed an ambitious 6-well drilling program, the results of which have been positive, and are particularly excited about the discovery of a significant gas and condensate find at a field in OML 61 of our Joint Venture.
This has had a major impact on our reserves and consequently future cash flows. Production has since commenced in October on the completed wells, and the gas will largely be channelled to feed the nation’s power sector through our Joint Venture’s Okpai Power plant, Nigeria’s first independent power plant.”
Continuing, he said: “In addition, we achieved an 8 per cent reduction in our debt levels, whilst growing free cash flows. Over the last quarter of the year, our focus will be on the completion of our drilling program as well as “tie-in” of the new discoveries.”
Over the course of the year, we, in conjunction with our JV partners, have aggressively ramped up our drilling program towards increasing oil revenue and meeting our gas obligations. As at September 2019, we have successfully completed a sidetrack at OML 56, shoring up net production by 1,500bbls/day, whilst also drilling and completing five wells across three rig lines at our joint venture operations on OMLs 60-63.”
Looking ahead, Tinubu’s Oando said: “Over the last quarter of the year, working with our JV partners, our focus will be on aggressively pursuing the completion of our drilling program at OMLs 60-63 whilst achieving cost optimization on our operations.”