Directors of energy giant, Oando Plc, on Friday presented its unaudited financials for the half-year ended June 30, indicating that revenue growth was slower than sales cost, while other operating income climbed nearly 20% up.
Other highlights of the result, however, showed an upsurge in administrative expenses; flat growth in finance costs, while the impact of a loss before income tax from continuing operations during the period was blurred by a ‘reversal of assets’ and a handsome increase in tax rebate, the bulk of which was the N28.585bn reported in the second quarter between April and June, double that of the corresponding period of 2018. This, notwithstanding, net profit dropped slightly.
Revenue for the period climbed N18.1bn or 6.08% up from N297.307bn in the first half of 2018 to N315.408bn; while the cost of sales inched N27.224bn or 11.05% up from N246.295bn to N273.52bn; resulting in N41.888bn gross profit, a drop by N9.123bn or 17.88% from N51.012bn in the prior half-year.
Other operating income was up N390.748m or 19.85% from N1.968bn to N2.358bn; reversal of assets stood at N10.622bn, compared to the previous N6.718bn impairment charge. Administrative expenses soared to N53.7bn, up by N21.282bn or 65.64% from N32.418bn, without an explanatory note; following which operating profit slumped from N13.842bn in 2018 to N1.168bn, leaving a 91.55% nosedive in operating profit
Finance costs stood at N21.285bn from N21bn; income dropped to N4.617bn, as against N5.088bn in the 2018 half-year; resulting in a net finance cost of N16.667bn, as against the N15.911bn in the prior year.
The group’s share of loss of associates soared to N1.781bn, as against the previous N193.819m; resulting in loss before income tax from continuing operations of N17.28bn, up by N15.018bn or 663.75% from N2.262bn.
The situation was saved by the N24.449bn half-year tax rebate, an increase by N13.693bn or 127.31%; owing to which net profit managed to rise by N1.324bn or 15.59% from N8.493bn in the first half of 2018 to N7.168bn.
A breakdown of segment revenue showed that exploration and production activities yielded N68.882bn and loss before tax of N11.055bn; while exploration and production had N233.359bn and N1.142bn profit. A tax credit of N28.405bn was however ascribed to exploration and production segment, while the corporate centre recorded N3.956bn tax expense during the period.