Oando reports after tax profit of $13m for Q1

     Johannesburg, July 8 (I-Net Bridge) – Nigerian integrated energy group Oando plc (OAO), which has a secondary listing on the JSE, on Wednesday reports profit after tax (PAT) for the first quarter ended 31 March 2009 of $13 million.
     This was compared to a profit of just over $12 million for the first quarter last year. 
     Earnings per share amounted to $0.01.
     The group said the performance of its exploration division, the latest contributor to the platform, coupled with the group’s traditional downstream business contributed towards the improved performance recorded within the quarter compared to the same period in the previous year.
     “Our marketing business delivered strong result, performing well above prior year against improved trade volume and efficient supply chain management. Our non-marketing businesses continue to contribute significantly to the Group bottom-line, further underscoring our strategic decision of diversifying our earning platform.
      “In addition, the growth in earnings is a reflection of improved margin efficiency experienced on white products; seamless supply chain management processes; proactive cash management; efficient working capital re-alignment and strong organic growth especially within our upstream operation. This improved performance was recorded against mixed macros
economic factors represented by reduction in pump price of PMS, fluctuating exchange rate, increasing fear over the continuous availability of supply of petroleum products and uncertainties surrounding the full deregulation of the downstream sector,” the group said.
     It added that the increase in turnover to $534 million was overshadowed by the growing volatility of the Naira that has seen the local currency lose over 25% in value against the US Dollar since the beginning of the year.
     “Improved operational efficiency however ensured that the Company recorded a modest 14% growth at margin level. The positive growth in turnover coupled with strong improvement in margin efficiency subsequently led to an increase in operating profit as the Group recorded a 20% increase over the $18m of operating profit recorded over the same period in the last year.”

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