Wrap Text
Press release re publication of Q3
Oando PLC
(Incorporated in Nigeria and registered as an external company in South Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
(“Oando” or the “Company”)
Oando PLC Announces YTD September 2019 Results, Posts N13.1 Billion Profit-After-Tax
PRESS RELEASE
Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous
energy group listed on both the Nigerian and Johannesburg Stock Exchange, announced
unaudited results for the nine months period ended September 30, 2019 on 28 October 2019.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
“In the period under review, we made substantial progress on our top priority of operational growth
and recorded an 8% increase in hydrocarbon production. In conjunction with our partners, we
successfully completed an ambitious 6-well drilling program, the results of which have been
positive, and are particularly excited about the discovery of a significant gas and condensate find
at a field in OML 61 of our Joint Venture. This has had a major impact on our reserves and
consequently future cash flows. Production has since commenced in October on the completed
wells, and the gas will largely be channelled to feed the nation’s power sector through our Joint
Venture’s Okpai Power plant, Nigeria’s first independent power plant. In addition, we achieved an
8% reduction in our debt levels, whilst growing free cash flows. Over the last quarter of the year,
our focus will be on the completion of our drilling program as well as “tie-in” of the new
discoveries.”
RESULTS HIGHLIGHTS
• 8% Production increase, 43,045boe/day compared to 40,039boe/day (YTD September 2018)
• 18% Turnover decrease, N413.8 billion compared to N505.1 billion (YTD September 2018)
• 26% Profit-After-Tax increase, N13.1 billion compared to N10.4 billion (YTD September
2018)
• 8% Total Group Borrowings decrease, N193.1 billion compared to N210.9 billion (FYE 2018)
OPERATIONS REVIEW
Upstream:
Production for the nine months ended 30 September 2019:
YTD Sept 2019 YTD Sept 2018 % Change
Crude Oil (bbls/day) 18,147 16,850 8%
NGLs (boe/day 2,662 3,181 -16%
Natural Gas (mcf/day) 133,415 120,047 11%
Total (boe/day) 43,045 40,039 8%
During the nine months ended September 30, 2019, production increased by 8% at
43,045boe/day, compared with 40,039boe/day in the same period of 2018. This was driven by an
11% increase in natural gas production (from 120,047mcf/day YTD September 2018 to
133,415mcf/day YTD September 2019) and an 8% increase in crude oil production (from
16,850bbls/day YTD September 2018 to 18,147bbls/day YTD September 2019).
Over the course of the year, we, in conjunction with our JV partners, have aggressively ramped
up our drilling program towards increasing oil revenue and meeting our gas obligations. As at
September 2019, we have successfully completed a side track at OML 56, shoring up net
production by ~1,500bbls/day, whilst also drilling and completing five wells across three rig lines
at our joint venture operations on OMLs 60-63.
In September 2019, Oando Plc announced that the NNPC/NAOC/OANDO Joint Venture (“JV”)
(of which Oando Energy Resources [OER] holds a 20% working interest) had made a significant
gas and condensate find in the deeper sequences of the Obiafu-Obrikom fields in OML 61,
onshore Niger Delta. Preliminary evaluation indicates that the find amounts to about 1 trillion cubic
feet of gas and 60 million barrels of associated condensate in the deep drilled sequences. The
well can deliver in excess of 100 million standard cubic feet/day of gas and 3,000 barrels/day of
associated condensates. The discovery is part of a drilling campaign planned by the Joint Venture
aimed at exploring near-field and deep pool opportunities as immediate time to market
opportunities. The JV started gas and condensate production from the Obiafu-41 discovery just 3
weeks after completion and the gas from this discovery will largely be channelled to the domestic
market in order to feed the power sector. The full impact of this discovery will be determined and
communicated to the market on conclusion of the next annual independent reserves and
resources evaluation.
Capital expenditure of $84.3 million was incurred in the nine months of 2019 compared to $59.3
million in same period in 2018. This consists of $77.3 million at OMLs 60 to 63, $5.6 million at
OML 56, and $1.4 million on other assets.
Downstream:
Traded volumes for the nine months ended 30 September 2019:
Traded Volumes YTD Sept 2019 YTD Sept 2018 % Change
Crude Oil (bbls) 9,343,992 10,391,806 -10%
Refined Products (MT) 317,649 445,483 -29%
In YTD September 2019, Oando Trading traded approximately 9.3 million barrels of crude oil
under various contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered
317,649 MT of refined products.
FINANCE REVIEW
N Million (unless otherwise stated) YTD Sept 2019 YTD Sept 2018 % Change
Revenue 413,760 505,085 -18%
Operating Profit 19,760 28,659 -31%
Profit-After-Tax 13,064 10396 26%
Total Borrowings 193,078 210,901 -8%
Average Realized Oil Price (US$/bbl) 63.77 71.42 -11%
Average Realized Gas Price (US$/mcf) 1.54 1.34 15%
Average Realized NGL Price (US$/boe) 7.26 9.51 -24%
*Borrowings compares YTD September 2019 against FYE 2018
Profit-After-Tax
Profit-After-Tax for the period was N13.1 billion, an increase of 26% compared to the
same period in 2018 (N10.4 billion).
Borrowings
Total Group Borrowings for the period stood at N193.1 billion, a 8% decrease from FYE 2018
(N210.9 billion) whilst in our upstream specifically, our borrowings reduced by 13% to $222.0
million compared to $255.6 million in FYE 2018.
LOOK AHEAD
Over the last quarter of the year, working with our JV partners, our focus will be on aggressively
pursuing the completion of our drilling program at OMLs 60-63 whilst achieving cost optimization
on our operations.
Ends.
For further information, please contact:
Ayotola Jagun
Company Secretary
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6159
ajagun@oandoplc.com
Segun Awodele
Head, Investor Relations
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6204
sawodele@oandoplc.com
For: Oando PLC
Ayotola Jagun
Chief Compliance Officer & Company Secretary
Sponsor: Sasfin Capital (a member of the Sasfin Group)
Lagos: 30 October 2019
GLOSSARY
“boe/day” barrels of oil equivalent per day
“bbls/day” barrels of oil per day
“mcf/day” thousand cubic feet per day
“bbls” barrels of oil
“boe” barrels of oil equivalent
“US$/bbl” US dollars per barrel of oil
“US$/boe” US dollars per barrel of oil equivalent
“US$/mcf” US dollars per thousand cubic feet
“MT” Metric Tonnes
“OML” Oil Mining Licence
Date: 30/10/2019 08:59:00
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