Despite the country’s economic recession, continued volatility in global oil prices, pipeline sabotage in the Niger Delta and reduced oil exports in 2016, Oando Plc has been able to rebound back to profit.
According to Leadership, the company’s result on Nigerian Stock Exchange (NSE) for the financial year ended December 31, 2016, shows that its profit after tax went up by 107 per cent to N3.5 billion compared to a loss of N47.6 billion in 2015.
Turnover increased by 49 per cent to, N569 billion from N382.0 billion in 2015, EBITDA appreciated by 51 per cent, N71 billion compared to N47 in corresponding period, while net debt reduced by 35 per cent from N355.4 billion to N230.6 billion in 2016.
The company in a statement said, amidst the economic challenges in 2016, Oando has successfully manoeuvred the cyclical nature of the sector by adapting quickly to the new reality of low oil prices and a depressed macro environment, saying the company commenced 2016 with a reinvigorated strategy of growth, deleverage and profitability.
Commenting on the result, the group chief executive of Oando, Mr. Wale Tinubu said, “2016 saw the country plunge into a recession, the first in over two decades, besieged with liquidity constraints, devaluation of the naira and a slump in oil earnings due to low oil prices intensified by the insurgency in the Niger Delta.
“We were proactive in the timely execution of our restructuring program of Growth in our upstream division; Deleverage, through divestments resulting in a net debt reduction of N125 billion; and Profitability by focusing on dollar denominated earnings.”
He noted that in the first quarter of 2016 the company successfully restructured its existing obligations through a N108 billion Medium Term facility with a syndicate of nine leading local banks, completed the full divestment of its upstream Services business and the recapitalization of its downstream business to Helios Investment Partners.
According to him, the recapitalisation of Oando’s downstream operations represents the largest inflow of foreign capital in a single transaction in the oil and gas sector in 2016. This strategic initiative is positioned to revolutionize Nigeria’s downstream sector and create one of Africa’s largest downstream operations.