The board of Oando Plc, on Monday released its long awaited audited financials for the full-year ended December 31, 2021, highlight of which was the profit after tax of N32.858bn from a loss of N140.674bn in the corresponding period of 2020.
The rebound was helped mainly by the reversal of impairment of financial assets amounting to N104.926bn, compared to the asset impairment of N62.897bn.
The result is coming 18 days behind schedule.
Recall that the company had in January published an updated timetable for the publication of its delayed audited financial statements promising to release its “2020 and 2021 Audited Financial Statements, as well as Q1-Q3 2022 Unaudited Financial Statements as prescribed by the NGX Rules on Filing of Accounts and Treatment of Default Filing” between February 28 and August 31, 2023.
Oando blamed its failure to meet the previous timetable of February 3, 2022, on “the lengthy onboarding process required for new external auditors and the complexity of auditing the several companies that make up the Oando Group.”
According to the audited financials, Oando Plc reported revenue from contract with customers of N803.46bn from the previous N477.07bn; of which cost of sales also soared to N761.934bn from N436.626bn; resulting in gross profit of N41.525bn, representing a marginal increase from N40.443bn.
A desegregation of the revenue showed that the bulk N529.5bn was generated from its supply and trading business; while exploration and production followed with N101.038bn.
Other operating income dropped from N43.598bn to N36.743bn; impairment of non-financial assets was nil, compared to the previous N3.185bn. Reversal of impairment of assets stood at N104.926bn from the previous impairment of N62.897bn; administrative expenses rose to N106.366bn from N92.297bn; resulting in operating profit of N78.829bn, from N74.338bn.
Finance costs for the period jumped to N78.582bn from N69.507bn; but the growth in finance income was even more dramatic, as leaped from N9.25bn to N44.081bn; while profit before income tax improved to N44.474bn, compared to the previous N140.674bn.
Tax expense for the period jumped by almost 100% from N6.39bn to N11.615bn; leaving profit after tax of N32.858bn; compared to N140.674bn in the same period of 2020. This translated to Earnings Per Share of N2.88, up from the loss of N9.50; following which the directors say they are unable to propose a dividend.