Oando’s financials boost shareholders’ confidence; posts N4.6bn after tax in H1, 2017

THE Nigerian oil and gas sector is gradually recovering from the upheaval of low oil prices; this is due in part to the exemption of Nigeria from the global oil production cut by the Organization of the Petroleum Exporting Countries (OPEC) as well as containment of the Niger Delta unrest which has led to a steady rise in oil production. In May 2017, the country’s oil production increased by 273,600 barrels per day (bpd) to 1.484 million barrels per day (bpd), a testament to these changes.
The approval of the Petroleum Industry Governance and Institutional Framework Bill (PIGB) is set to further improve the sector. The anticipated fall out of the PIGB is a more efficiently regulated oil and gas industry and a conducive business environment for sector players. More recently, specifically Thursday, July 27 three petroleum industry bills passed second reading in the Senate; this is expected to further encourage substantial investment in the petroleum industry.
Against this backdrop Oando PLC, Nigeria’s leading oil and gas company further bolstered confidence in the sector by declaring a N4.6 billion Profit-After-Tax in its half year ended 30 June, 2017 results.
An analysis of the half-year (H1) 2017 results of oil and gas companies operating in Nigeria reveals a steady increase in earnings. Royal Dutch Shell’s cash flow rose to the highest since the oil crash began, generating $3.6 billion earnings, Tullow Oil’s revenue increased by 46 percent to $0.8 billion and Oando proved no different.
A comparative review of Oando’s financials further show positive performance across all financial indices, turnover increased by 26 percent to N267.