Oando Plc, yesterday, declared N1.7billion Profit After Tax (PAT) for the first quarter of this year, just as its turnover grew by 116 per cent to N138.4 billion and gross profit by 53 per cent to N13.4 billion.
The feat, was attributed to factors such as restructuring of operation of the firm, reduction in its net debt, surge in its downstream and upstream activities, among others.
The company, in a statement, explained that its subsidiaries have delivered greatly in every facet of their operation.
Its Group Chief Executive, Mr Wale Tinubu, said the company has reduced its net debt by 29 per cent from N225.9 billion in 2017 to N316.6billion in 2016.
Tinubu said: ‘’In the upstream, production in the first quarter of 2017 decreased to 38, 125 barrels of crude oil per day (bpd), compared to 49, 365 (bpd) in first quarter of 2016. However, due to decreased production expenses, Oando Energy Resources (OER) recorded a profit of N4.96billion in the first quarter of 2017, compared with a profit N815.5million in the comparative period.
‘’In the midstream, following partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners, we successfully concluded the sale of Alausa Independent Power Plant (IPP) for a transaction price of N4.6 billion. In the downstream, our trading business through the Direct Sale &Direct Purchase (DSDP) and Offshore Processing Agreement(OPA) yielded N115.6 billion compared to N4.4billion in 2016.’’
He said the firm has recorded growth in spite of continued security challenges, economic headwinds and a fluctuations in crude prices.
He said Oando recorded a production shortfall in the upstream due to significant reductions in gas production and delivery caused by a ruptured Gas Transmission System (GTS-4) at Oil Mining Leases (OMLs) 60 to 63.
He said in addition to the problem, the Trans Forcados pipeline has continued to suffer downtime, a development, which has resulted in fall in crude production in Ebeno field.