Oando PLC reported a post-tax profit of N13.6 billion for the third quarter of 2024, ending September 30, a significant improvement from the N2.2 billion loss recorded in the same period last year.
This represents a 510.48% year-on-year increase, bringing the company’s total post-tax profit for the nine months to N76.2 billion.
Revenue for the third quarter stood at N1.1 trillion, a 15.7% rise compared to the previous year, with total revenue for the nine months reaching N3.1 trillion.
The bulk of the group’s nine-month revenue, at N2.9 trillion, came from the supply and trading of crude oil, as well as refined and unrefined petroleum products.
Key financial highlights:
- Revenue: N1.1 trillion, +15.69% YoY
- Cost of Sales: N1 trillion, +8.93% YoY
- Gross Profit: N112 billion, +174.89% YoY
- Other Operating Income: N28.5 billion, +42.06% YoY
- Operating Income: N39 billion, +13.69% YoY
- Net finance cost: N54.7 billion, +90.85% YoY
- Pre-tax loss: N14.3 billion, -351.80% YoY
- Post-tax profit: N13.6 billion, +510.48% YoY
- Total Assets: N7.8 trillion, +192.97% YoY
Commentary
A cursory look at Oando’s third-quarter 2024 results highlights improved performance despite a significant rise in net finance costs during the period.
- The company’s revenue grew by 15.7% year-over-year to N1.1 trillion, with N1 trillion of this coming from the supply and trading of crude, refined, and unrefined petroleum products.
Cost of sales increased by 8.93% to N1 trillion, up from N960.7 billion in the same period last year, but gross profit climbed significantly to N112 billion, a 174.9% jump from N40.7 billion.
- ‘Other operating income’ rose 42.1% to N28.5 billion, largely driven by foreign exchange gains, which accounted for over 90% of the total, bringing the nine-month figure to N308.7 billion.
- Main operating income increased by 13.7% to N39 billion, supported by exploration and production activities involving oil blocks on the Nigerian continental shelf, deep offshore, and São Tomé and Príncipe.
- However, net finance costs surged 90.9% year-over-year to N54.7 billion, with 71.4% linked to exploration and production activities.
In all, Oando reported a post-tax profit of N13.6 billion, a notable turnaround from the N2.2 billion loss recorded the previous year, reflecting a 510.6% year-over-year improvement.
Group asset performance
The group’s total assets demonstrated substantial growth, rising by 192.97% year-over-year to N7.84 trillion for the nine-month period ending September 30, 2024, compared to N2.68 trillion recorded in the previous year.
- Non-current assets saw a notable increase, climbing to N4.53 trillion from N1.86 trillion, largely driven by significant investments in property, plant, and equipment, as well as intangible assets.
- Similarly, current assets experienced a remarkable surge, reaching N3.31 trillion from N815.5 billion, supported by strong performance in trade and other receivables, alongside higher cash and cash equivalents.
Investments in finance, lease receivables, and short-term investments also played a key role in the expansion of the asset base.
SOURCE: Nairametrics