What can go wrong for Wale Tinubu this year? Nothing, it seems. The Group Chief Executive (GCE) of Oando Plc keeps winning as he leads the company through another successful third quarter. Wale Tinubu has always delivered far above expectation and last week, hard work and efficiency paid off again with the release of the company’s financial report.
Oil and gas companies in Nigeria have shown improved financial performances in the past months on the back of rising oil prices and increased demand. Disruption activities in the Nger Delta have also eased, leading to higher production. Wale Tinubu has led Oando’s capitalization on these new favourable trends, growing oil production by 40,039 boe/day YTD September 2018, compared with 39,844 boe/day in the same period of 2017.
Wale Tinubu’s Oando Plc has come a long way since the oil price crash of 2014, and this is evident in the company’s recently released financial results for YTD 2018 which saw turnover rise by 32% to N505.1 billion, and profit after tax increasing by 46% to N10.4 billion. The market capitalisation of listed equities on the Nigerian Stock Exchange subsequently rose by N93bn on Tuesday last week as the company and some other oil brands recorded price appreciation.
The company’s performance was boosted further by sale price increases of 6% for natural gas liquids and 31% for natural gas deliveries. Brent prices averaged $72.25 a barrel, resulting in a 45% increase in the crude selling price compared to the same period in 2017. Oando’s oil production was also 10% higher for the period.
On the results announcement, Wale Tinubu was quoted as saying:
“Today’s positive result is further evidence of the progress made by Oando in 2018 driven by our continued focus on execution and operational efficiency, supported by buoyant commodity prices. The outlook for the remainder of the year is positive, and we remain committed to delivering on our value-based strategy towards improving our liquidity by reducing our gearing, improving our profitability by increasing production, and achieving growth via strategic alliances.”
Oando has more than 450-million barrels of reserves and interests in 14 oil licences in Nigeria and the island of São Tomé and Príncipe. On the Johannesburg Stock Exchange (JSE), the company’s shares traded at 30c on Wednesday with a stock market capitalisation of R3.7bn.
Oando’s continued strong financial performance, the 3rd this year, and sustainability initiatives, reinforce the company’s drive to redefine the role of independent oil and gas players in supporting economic growth in Nigeria and throughout Africa. The indigenous oil company has been especially active this year in promoting impactful initiatives that benefit its host communities. Recently, it commissioned a 20,000-gallon water scheme in the Agbere Community, Bayelsa, empowering over 5,000 people in the process. The initiative, in partnership with Oando’s Joint Venture (JV) Partners, NNPC and NAOC, will drastically reduce deadly water-borne diseases in the area.
Looking ahead, the outlook for Oando Plc is positive. Its upstream arm is strategically positioned to leverage production growth via investment in targeted profitable projects, while maintaining fiscal prudence.