Oando Group Nets N1.14bn Q1 Profit

Fresh from presenting its 2016 full year score-card, directors of integrated energy group- Oando Plc, on Thursday, reported a significant 72.2% slump in its profit for the first three months of this year, despite the N117.793bn or 575.18% revenue growth to N138.272bn, compared to the N20.479bn restated figure for last year.
Within the period also, cost of sales soared to N124.862bn, up from N17.921bn, resulting in gross profit of N13.41bn from the previous N2.557bn.
A breakdown of earnings for the period according to the various business segments shows that exploration and production fetched N22.63bn; marketing, refining and terminals was nil; supply and trading yielded N115.6334bn; gas and power scooped N140.51bn; energy services, nil; and corporate & other, N1.47bn.
A note by the group said the group completed the sale of its marketing and energy services companies last year, hence the ‘nil balance’ under both segments this past quarter.
Of the N8.633bn operating profit for the period, exploration and production contributed N10.096bn; supply & trading lost N578.611m; gas and power lost N42.082m; and corporate & other, N841.616m. Net finance cost came principally from N4.2bn of exploration and production business; and corporate & other, N4.189bn.
Other operating income stood at N7.499bn, up from N4.725bn; while administrative expenses slowed down to N13.286bn from the previous N15.217bn; following which operating profit stood at N7.623bn, as against the previous N7.933bn loss.
Finance costs fell to N10.664bn from N14.075bn; just as finance income rose from N1.308bn to N2.269bn; which brought net finance costs to N8.394bn, down from N12.766bn in the preceding first quarter.
While loss before income tax from continuing operations dropped from N20.7bn to N647.034m; income tax credit fell from N5.317bn to N1.218bn; resulting in profit for the period from continuing operations of N571.04m, compared with a loss of N15.382bn.
Profit after tax for the period from continuing operations stood at N1.14bn, compared to the previous N19.484bn; following which net profit for the period fell by N2.961bn from N4.101bn to N1.711bn, translating to Earnings Per Share of 5 kobo, as against the previous 35 kobo.

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