Oando Plc recently released its much awaited full year 2013 audited accounts alongside the half year 2014 results showing a reversal of fortune in June 2014 as the Company’s management was able to turn around its woeful performance in full year 2013 to a positive one in the half year 2014. The Company’s management proposes a full year 2013 dividend of 30 kobo per share and interim half year dividend of 70 kobo per share.
Considering the net loss of N4.6 billion caused largely by the N21.6 billion finance costs alongside the N41.4 billion administrative costs in the face of a gross profit of N59.2 billion, we focus on the positive performance in 2014 as shown in the Half year report.
Oando’s gross profit for the half year period of June 2014 swelled by 67.05% to N50.51 billion from N30.23 billion in the same period of 2013. the primary reason for the rise in profit was the 42.40% reduction in sales cost which stood at N144.05 billion from N250.09 in the corresponding period of 2013. The Company’s turnover also reduced by 30.60% to N194.56 billion from N280..32 billion.
Oando’s net income for the period under review grew by an impressive 110.23% to 8.98 billion from N4.27 billion in the same period of 2013. The commendable surge in earnings was achieved despite a 214.32% increase in finance costs linked to debt obligations on Conoco Philip assets