Oando Plc, an integrated energy solutions provider, which has its primary listing on the Nigeria Stock Exchange (NSE) and a secondary listing on the Johannesburg Stock Exchange of South Africa has doubled its pre-tax profit for the first quarter of 2010, according to its unaudited results announced last week.According to the financial highlights, the turnover grew by 16per cent to $618million; while gross profit was up by 48per cent to hit $86 million.The company's operating profit also soared by 56per cent to $56 million, with the pre-tax profit rising by 105per cent to $34 million.
Profit after tax was up by 69per cent to $21 million, with attributable profit after tax growing by 69per cent to $21million, while earnings per share also rose 69per cent to 2.34 cents. In operation, there was revenue contribution from the company's first Independent Power Project (IPP) which was commissioned in Lagos State during the period, while rig upgrade revenue income was recognised for the first time in the income statement, with crude oil production from producing assets also increasing during the period under review.
For the first quarter of the 2010 financial year ended March 31, Oando reported profit after tax of S21.2 million, which was 69per cent higher than in the first quarter of 2009.Pre-tax profit was 105per cent higher at $34 million, while revenue of $S618 million was 16per cent higher than in the previous first quarter.
Operating profit was $56 million, 55per cent higher than in the previous quarter, while earnings per share for the quarter came in at 2.34 US cents per share compared to 1.37 US cents a year earlier. Group Chief Executive Officer, Oando Plc, Mr. Wale Tinubu, commented: “I am happy to announce a positive start to the year. The first quarter's success is attributable to the increase in earnings from the midstream and upstream divisions as the new project initiatives continue to come on stream. Furthermore our downstream division has performed creditably in line with our financial expectations.
The quarter heralded our launching a major capital market transaction in recent times with a Rights Issue exercise which received overwhelming support from our shareholders and closed with a 28per cent oversubscription. Our Gas and Power division commissioned our first captive power plant for Lagos State Water Corporation, and in so doing substantially reduced their operational costs.
Furthermore, the project has major social consequences as clean potable water throughput has increased by 300per cent. Our Energy Service division deployed an additional swamp rig to commence operations with a major International Oil Company and our Exploration and production also increased production from our producing Oil and Gas assets. We look forward to continued growth for the Group in 2010. In the downstream business we welcome the Sovereign Debt Note Programme aimed at guaranteeing future Petroleum Subsidy Fund (PSF) receivables. In the upstream business the Local content Policy initiative which promotes indigenous companies has been elevated into law thus providing preferential terms, both fiscal and operational for Nigerian Corporates.”