Oando recorded another victory with the successful conclusion of its 41ST Annual General Meeting (AGM) Lagos, where the shareholders rallied support for the company as it published its first half of 2018 results, recording N8.5 billion profit-after-tax.
Shareholders at the AGM were united in their support for the company and applauded the management team for restoring market confidence by maintaining a track record of growth over the last 18 months culminating in the achievement of N8.5 billion PAT in H1 2018, the company’s seventh quarter consecutive profit. According to a statement by the company, the shareholders went on to encourage the management to keep up the good work and avoid distractions.
Speaking at the AGM a shareholder, Adebayo Adetunji Adeleke commended the management for transforming Oando from a downstream company to a dollar earning upstream focused business.
“The profit declared in H1 2018 has given us hope, I am optimistic that with hard work the company will continue in this stead. I want to commend Oando on the impact of our Corporate Social Responsibility activities, we are touching lives, hundreds of thousands of lives and these same people are praying for the company therefore we will not go down,” he explained.
According to the statement, the company’s profits swelled as oil prices increased.
An analysis of Oando’s financials shows that the company’s turnover grew by 11 per cent to N297.3 billion from N267 billion (H1 2017); gross profit increased by 53 per cent to N51 billion compared to N33.4 billion (H1 2017); and profit-after-tax increased by 86 per cent to N8.5 billion compared to N4.6 billion (H1 2017).
In its upstream business, Oando recorded a net profit of N27.1 billion ($75.2 million) compared with N16.3 billion ($53.2 million) in the comparative period of H1 2017.
According to the company’s statement, the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities.
Oando picked up on the industry recovery witnessed in 2017. Brent prices averaged $69.87 per barrel, resulting in a 38 per cent increase in realised crude selling price compared to the same period in 2017.
Another shareholder, Tunde Badmus said: “Oando has survived all odds and is still strong. I am confident the journey of the company will lead to victory for all. I commend the management for being prompt to respond to issues concerning the business operations. We pledge to continue to support you.”
All resolutions passed at the AGM were approved including the re-appointment of Ernst and Young as auditors, the Directors were authorized to fix the auditors remuneration; appointment of Alhaji Bukar Goni Aji and Mr. Muntari Zubairu to the Board of Directors; election of audit committee members, and approval of the remuneration of non-Executive Directors.
Sola Abodurin spoke on the efforts being made by management in reducing the company’s debt. He said: “I thank the Board of Directors for the efforts they’ve made to face challenges. About two years ago, if you looked at our debt profile, you’d wonder how the company would survive. But today, we’ve not only survived, we have drastically reduced our debt by over 50%. I appreciate the Board for the restructuring initiatives put in place when oil prices fell to keep the company.