OANDO Plc, Nigeria’s integrated energy solutions provider with operations across West Africa, announced its unaudited results for the nine months ended 30 September 2007.

Profit After Tax (PAT) witnessed a significant increase of 53 per cent from N2.32 billion for the corresponding period in 2006 to N3.56 billion in the first nine months of 2007. This performance is driven by the positive contribution from the company’s subsidiaries and the efficient utilization of working capital, coupled with value extraction from group synergies along the value chain.

According to the results, the company’s Profit before Tax grew by 46 per cent from N3.01 billion in 2006 to N4.14 billion in 2007. The increase is also a consequence of huge improvement in non-marketing contributions to profits and further underscores their strategic decision to continually diversify their operational base along the energy supply chain.

Consequently, information from the company stated that the profit attributable to the group grew by 44 per cent from N2.00 billion to N2.88 billion. This growth in the group performance results from the increased benefits accruing to their shareholders following the new structure in place and the effects of the Share Swap exercise that was completed during the period under review.

Other key highlights include turnover as at the third quarter of 2007 was N174.28 billion a 12 per cent increase compared to N155.73 billion in the previous year. The key drivers according to the company remain improved business activities along the supply chain within the group coupled with product price increases.
Turnover within the quarter increased by 25 per cent while the cumulative increase of 12 per cent was against the backdrop of a dip in turnover in the second quarter occasioned by several man-hours that were lost to industrial and general strike and election holidays.

The third quarter Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of the company was N 6.96 billion in 2007, against the N5.37 billion, a 30 per cent improvement. The growth in EBITDA is attributable to improve pump margin, improved Non-fuel revenue income base and efficient cost curtailment effort of management that have seen administrative expense increasing marginally by five per cent despite increase in volume of business activities.

Commenting on the result, Mr. Wale Tinubu, Group Chief Executive, Oando Plc said: "The group is pleased to report continued impressive profit growth in the third quarter. This was mainly as a result of a huge improvement in the contribution from our non-marketing business which benefited from increased business activities, as well as sustained product availability in our traditional marketing business."

"Higher oil prices also contributed positively through improved margins. The positive performance and increasing opportunities in the energy sector further support Oando’s strategic decision to continue diversifying and expanding our operations base.