More troubles for Oando as turnover drops N44bn in 2015
… Records comprehensive loss of N37.8bn

By Kayode Ogunwale

 

In spite of delay in its 2015 full year financial result, Oando Plc today declared a drop of N44 billion represented 10.34 per cent in its turnover.
The indigenous energy group listed on the Nigerian Stock Exchange and Johannesburg Stock Exchange announced audited results for the year ended 31 December, 2015 with turnover down from N425.7 billion it made in 2014 to N381.7 billion at the end 2015 year.
According to the result released to the Nigerian bourse in Lagos, loss before tax decreased to N51 billion in 2015 from N138 billion of 2014.
In the same vein, Oando loss after tax also decreased to N49.7 billion during the period of 2015 compared to N145.7 billion it made during the full year of 2014.
Other financial highlights of the company during the period indicates that the group reported comprehensive loss for the year of N37.8 billion and as at the time the current liabilities of Oando Plc exceeded current assets by N247.9 billion.
The company’s spent 66.11 per cent (N106.753 billion) of its revenue on cost of sales in the year 2015 as against 53.47 per cent (N49.611 billion) it spent during the same period of 2014.
It total assets stood at N946.321 billion in 2015 as against total liabilities of N895.427 billion at the end of 2015 financial year.
The directors of Oando failed to propose dividend for the year as the net loss for the period which stood at N49.7 billion has been transferred to retained earnings.
However, the group in its 2016 first quarter result also released today shows that, the turnover decreased by N33.10 billion to close 2016 first quarter with N64.0 billion compared to N97.1 billion of first quarter 2015.
It’s gross profit decreased by N11.70 billion to end at N8.8 billion compared to N20.5 billion of first quarter 2015.
Profit before tax increased by 98 per cent, (N461 million) compared to (N19.4 billion) (first quarter 2015) while its profit after tax increased by 120 per cent.
Commenting on the results, Group Chief Executive, Oando Plc, Mr. Wale Tinubu said, “2015 remained a turbulent year for the global oil and gas industry as business models had to be altered to enable industry players survive this new reality, by focusing on cost optimisation, increasing operational efficiency and downscaling capital expenditure. This re-evaluation of our business has resulted in the execution of strategic initiatives, which we are confident will return our business to profitability in the short-term in 2016, with Growth through our dollar earning upstream portfolio, Deleverage through recapitalization or asset divestments, and Profitability hinged on refocused dollar oil export trading business”.
Also speaking on first quarter result, Tinubu said, “This first quarter of 2016 demonstrates our dedication to return our business to profitability by the end of the 2016. We are succeeding in our corporate initiatives which are today’s driving forces for our business in this new global reality of economic restraint and lower oil prices in our industry. As a group we have placed our focus on growing our dollar earning upstream higher margin and export trading businesses. We continue to count on the consistency of our retail and midstream interest and look forward to a rewarding year, where we solidify our aspirations and return to profitability”.