Nigeria’s energy giant, Oando Plc, on Thursday presented its unaudited financials for the first quarter ended March 31, 2019, showing some promise for full-year, if the management would sustain the tempo, even as operating costs continue to pale the effects of rising revenue and ‘reversal of receivables’ for the period.
Revenue for the period, for example, rose by N17.463bn, or 11.56%, from N150.546bn in the 2017Q1 to N168.009bn; while the cost of sales rose by a faster N22.194bn or 18.1% to N23.209bn from N122.605bn. Gross profit, therefore, dropped by N4.732bn or 16.94% to N23.209bn, compared to the previous N27.941bn.
Other operating expense stood at N1.457bn, as against the N802.279m income; just as N9.951bn was recorded as the reversal of receivables, up from the N275.886m impairment in the corresponding Q1. Administrative expenses rose by about N1bn from N13.579bn to N14.603bn; resulting in operating profit of N17.1bn, which increased by N2.212bn or 14.86% from N14.888bn.
Management successfully contained finance costs at N10.694bn from N10.642bn; at a time finance income stayed flat at N2.491bn from N2.399bn; resulting in net finance costs of N8.202bn, down marginally from N8.242bn.
Profit before tax, therefore, stood at N8.77bn, improving by N2.264bn or 34.79% from N6.506bn from N8.77bn. Tax expenses however soared by N1.822bn or 78.74% from N2.314bn in 2017Q1 to N4.136bn; with net profit closing flat at N4.634bn, or Earnings Per Share of 42 from N4.191bn
Abreakdown of the financials showed that supply and trading strategic business unit contributed the lion’s share of N122.638bn, followed from afar by exploration and production’s N42.225bn; while “corporate and other” added N13.146bn.
Most of the operating profit, however, was the N12.923bn from “corporate and other,” which also incurred N3.455bn net finance cost; followed by exploration and production, N2.681bn, as well as N4.623bn of income tax expense; and supply and trading, N1.495bn, as well as N1.495bn cost.
At the end of the period, “corporate and other” contributed N5.864bn to net profit, despite the N3.474bn tax expense; followed by N1.372bn from supply and trading, while exploration and production suffered N2.603bn net loss. In2018Q1, exploration and production contributed N9.468bn, while supply and trading posted N681.218m net loss; while was child’s play compared to the N4.595bn by corporate and other.