Oando turnover drops by 10.34% in 2015

Lagos –  Oando Plc has posted a turnover of N381.7 billion for the financial year ended Dec. 31, 2015 against N425.7 billion achieved in the corresponding period of 2014.

The News Agency of Nigeria (NAN) reports that the turnover represented a drop of N44 billion or 10.34 per cent when compared with the 2014 figure.

The report is contained in the company’s audited result released by the Nigerian Stock Exchange (NSE) on Friday in Lagos.

The result showed that loss before tax decreased to N51 billion in 2015 from N138 billion recorded in 2014.

NAN also reports that loss after tax decreased to N49.7 billion compared with N145.7 billion achieved in 2014.

The result also showed that the company spent 66.11 per cent (N106.75 billion) of its revenue on cost of sales during the period under review against 53.47 per cent (N49.61 billion) spent in 2014.

Total assets stood at N946.32 billion in 2015 against total liabilities of N895.43 billion at the end of 2015 financial year.

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The directors of Oando failed to propose dividend for the year as the net loss for the period which stood at N49.7 billion was transferred to retained earnings.

Also, the company, for the first quarter ended March 31, 2016 recorded a turnover of N64.0 billion in contrast with N97.1 billion in the preceding period of 2015, a decrease of 34.09 per cent.

Its gross profit stood at N8.8 billion against N20.5 billion, indicating a decrease of N11.70 billion or 57.07 per cent.

Commenting on the results, Mr Wale Tinubu, the company’s Group Chief Executive, said that 2015 was a turbulent year for the global oil and gas sector.

Tinubu said that business models were altered to enable industry players survive the new reality on ground 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,” Tinubu stated.

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He explained that with growth through its dollar earning upstream portfolio, recapitalisation or asset divestment the company would return to profitability.

Also speaking on the first quarter result, Tinubu said that it showed the company’s dedication to return its 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 will solidify our aspirations and return to profitability”, he added. (NAN)

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