Oando Plc 3 Months Financial Summary

3 Months  OANDO PLC 2017 N'000 2016 N'000 change Year End Revenue 138,272,046 20,479,147 575% December Profit/Loss before taxation 647,034 20,700,824 -97% Profit/Loss for the period 1,711,703 4,101,357 -58% Issued Shares (Units) 9,084,685,738 9,084,685,738 Basic Earnings Per Shares (Kobo) 5.00 35.00 -86% Last total dividend paid (Kobo) 0.00 0.00

Oando Plc had simple turned a new leaf leaving only Conoil in that sector to have a rebirth.

The Q1 result of Oando have some positive that can be considered worthy of note.

The increase revenue may not be far from the relative peace now enjoyed in the Niger Delta. it increased revenue year on year by   575%, this however declined by 39.20% quarter on quarter reflecting its strong finish to 2016. PAT on the other hand declined by  58% year on year and 97.44% quarter on quarter still reflecting the strong finish of 2016.

In addition to increase revenue, Oando also increased its other operating income by 36.49%, admin expenses was reduced by 13.15% and net finance cost was reduced by 34.65%. All these are positives taken from the result.

Further analysis of the segment report shows that Exploration $ Production remains the cash cow of the company as it was in Q4 2016. it contributed a total of #7.1billion in profit, followed by gas and power that contributed #88million. However loses from Corporate & Other with Supply and trading of #4.9billion and #584million respectively beat the profit down to # 1.7billion.

it should be noted also that total borrowing  remains high at at #244billion.

A Subsidiary previously classified as held for sale and presented as discontinued operations in 2016 was now disposed in 2017 as reported by the company.

The Alausa Power Limited was sold On 28th September 2016, the board of Oando Plc passed a resolution to dispose 100% of the issued shares of Alausa Power Ltd. The sale, which was concluded on 31 March 2017, was made to Elektron Petroleum Energy & Mining Nigeria Limited (the buyer) following a no objection consent obtained from SEC on the same date. Consequently, the Group lost control and derecognized assets & liabilities of the entity.

A gain on disposal of N1.1 billion (Group) and N1.9 billion (Company), have been recognized in these consolidated and separate financial statements.

The reason the Company actually made profit in Q1 2017.

Everything being equal, relative peace retained in the Niger Delta, and stable price of  Crude Oil in the Global Market should put Oando back at the eye of the Market. Without this the company is treading a volatile domain.

We wish Oando the Best in the Coming Months.