oando

[billions]

Oando sustains investors’ hope as price rises by margin
15 May, 2008 02:00:00 MADUKA NWEKE
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Oando plc, an energy company in the petroleum industry has continued to make marginal price appreciation. On May 14, the stock opened for trading at N215.01 and appreciated by N7.99 to close the day at N223.00 per share.
The market had witnessed a preponderance of price appreciation for most blue chips. The stock led the 58 stocks that made the gainer’s table out of 107 stocks that traded on the floor of the exchange.

The stock, during the May 13 transactions on the Exchange, opened the day at N210.00 and added N5.01 per share to close the market at N215.01, giving investors high hopes of good investment returns.

On the week that ended May 9, 2008 the stock amassed a total of 9,378,831 units that worth N2.3 billion exchanged by investors in 1,215 deals.

The Nigerian Stock Exchange (NSE) monthly stock market review for January 2008 revealed that the stock which started the year at N122.60 per share appreciated by N17.41 or 14.20 percent to close at N140.01 per share.

During the month of February, the stock, which opened transactions at N140.01 per share made an appreciable price increase of N1.02 or 50.72 percent to close the month at N211.37 per share. The month of March was a bit tight for most blue chip companies as they lost considerably thereby pulling both capitalisation and all share index down significantly. Of the 162 stocks that featured on price movement table, only 62 stocks made the gainer’s chart leaving whole 81 stocks as laggards.

On April 30, 2008 Oando plc made a historical price increase of N8.00 per share which brought the previous day’s N221.00 per share to N229.00 per share even as fewer stocks made it to the gainer’s table.

With the price of N8.00, Oando led the 32 stocks that made the gainer’s table out of the 96 stocks that traded on that day.

According to Wale Tinubu, group chief executive officer, the future for the company is bright. "Our gas business should contribute about N4-5 million at the end of this financial year. This is the pride of our 300 percent expansion plan which will come on stream in the first quarter of next year. This will contribute about N1 billion from gas over the next financial year. These are the kind of increases you are likely to see in each of the divisions," he said.

Tinubu said with these, the contribution of the

[alekb]

Hello
Im forigner interested in good oportunities in nigerian stocks
Can anyone tell me p/b p/e p/s and forward p/e for this company
tech analis dosent look nice for oando(head and shoulders stradegy) so it can goes down to ~100.But Im not familiar with company performance.p/e od 30x doesnt look nice if forward p/e isnt /2.

[hispy99]

Oando Marketing Launches New Aerosol Insecticide

THISDAY ONLINE

[billions]

oando 2 raise more money....Proshare News

[hispy99]

Oando’s search for N118bn to ease JSE liquidity concerns

BusinessDay... the voice of business - Oando’s search for N118bn to ease JSE liquidity concerns

[hispy99]

Shell, Agip, Oando battle over N75b oil blocks


Guardian Newspapers

[BLUEMONEY]

Originally Posted by hispy99

Shell, Agip, Oando battle over N75b oil blocks


Guardian Newspapers

Thanks for the info. let the battle continues.

[kenebobo]

I never knew oando was involved in the upstream

[riskreturn]

OANDO PLC
UNAUDITED HALF YEAR RESULT FOR THE PERIOD ENDED JUNE 30, 2008
2008 2007
TURNOVER N124.415b N105.9b
EXCEPTIONAL ITEMS NIL N548m
PROFIT BEFORE TAXATION N4.729b N2.941b
TAXATION (N1.057b) (N633m)
PROFIT AFTER TAXATION N3.673b N2.308b

[hispy99]

Senate upholds sale of OML 125 and 134 to Oando
By John Alechenu, Abuja and Clara Nwachukwu
Published: Friday, 19 Sep 2008
The Senate on Thursday, recommended that the ownership of Oil Mining Leases 125 and 134 be retained by Oando Plc.

This decision was sequel to the adoption of a report by the Senate Committee on Petroleum Resources (Upstream); on a petition filed by Oando Plc, over the divestment of the Shell Nigeria Exploration and Production Company from the licenses in question.

Other recommendations are: ?That the divestment of SNEPCO?s 49.81 percent participating interest in OML 125 and OML 134 to Oando and SNEPCO on the 22nd of February 2008 was validly executed and is hereby sustained.

Consequently, the Minister of State for Energy (Petroleum) should issue an order and supervise the transfer of the said participating interest to Oando forthwith.

?That Oando should forthwith own 49.81 per cent interest in OML 125 and OML 134 while Nigeria Agip Oil Company should retain its 51.19 per cent and its status as the operator of both fields.”

The Senate also recommended that the Minister should halt forthwith the illegal operations of OML 125 and OML 134 and regularise the anomalies and illegalities identified in the previous assignments by granting consent to the assignment of the 49.81 per cent participating interest to Oando.

It also recommended that ?The Minister should also publish forthwith this assignment in the Federal Gazette.

?That all oil and gas companies operating in Nigeria, must consider Ministerial consent as fundamental to the legal validity of any assignment of oil prospecting license or oil mining lease in Nigeria, as our laws empower the minister to ensure that the Joint Operating Agreement to be signed by companies do not jeopardise the interest of Nigerians and companies controlled directly or indirectly by Nigerian citizens.”

The Senate also recommended that all existing Joint Operating Agreements and assignments of interests in oil prospecting licenses and oil leases in the oil and gas industry should be subjected to review and receive Minister?s consent before they become operative.

It also recommended among other things, the enhancement of the participation of Nigerians through local content development.

Oando had petitioned the Senate over the decision of Agip Exploration Nigeria to prevent it from operating the said license after it won the bid to do so.

But reacting swiftly to the development, another indigenous firm, Allied Energy Resources Limited, which had 15 per stake in the oil blocks declared, ?The Senate does not have the power to award oil blocks.”

Oando emerged the preferred bidder of the two deepwater blocks offshore Nigeria Oil Mining Lease in an international competitive bidding process, at a transaction in which the African Petroleum Plc also indicated an interest.

[billions]

OANDO PLC
3RD QUARTER 2008
2008 2007 %CHANGE
TURNOVER N198.644b N174.281b 14
PROFIT BEFORE TAXATION N7.292b N4.416b 65
TAXATION (N1.733b) (N852m) 103
PROFIT AFTER TAXATION N5.560b N3.565b 56
NET ASSETS N45.8b N26.3b

[hispy99]

Analysts forecast puts Oando’s full year income at N242 billion
Thursday, 13 November 2008 00:16 ABDUL IMOYO

In the last six months we have seen quoted companies churn out excellent performance which ironically yielded little or no impact on their share prices and left investors in tight situations. There are a number of companies which sent in their quarterly results regardless of the market situation even as the loss trend was not attributable to any fundamental deterioration in the companies’ conditions or overall economy.

One of such companies is Oando plc, an indigenous oil company quoted in the petroleum marketing sub sector of the Nigerian Stock Exchange (NSE). As share prices continued their dizzying fall, Oando’s third quarter result, though impressive, could not save its share price from the bear attack.

Specifically, the unaudited third quarter result for the period ended September 30, 2008 showed that turnover grew by 14 percent to N198.64 billion, compared with N174.28 billion in the corresponding period of 2007. Profit before tax (PBT) grew by 65.1 percent between 2007 and 2008 to N7.29 billion from N4.42 billion. The company’s provision for tax which increased by 103.4 percent between 2007 and 2008 to N1.73 billion from N852million brought about a Profit after tax (PAT) of N5.56 billion as against N3.57billion in 2007, representing a growth of 56 percent.

A cursory look at the company’s profit margins revealed an increasing trend compared with the results at the corresponding quarter in 2007. The PBT margin increased marginally to 3.67 percent in 2008 from 2.53 percent as at third quarter of 2007, but still remains the same at 3.67 percent as at the end of the financial year in December, 2007. This showed that the company’s total cost as a percentage of turnover stood at 96.33 percent in 2008, down marginally from 97.47 percent in the corresponding period in 2007.

According to analysts report, PAT margin currently stands at 2.80 percent, up marginally from 2.05 percent in the corresponding period in 2007, but down from 2.95 percent as at full year 2007.

The results also indicated that the percentage of the turnover, PBT, and PAT
in the third quarter result to the full year audited turnover, PBT and PAT for the period ended December, 2007 are 106.86 percent, 107.01 percent and 101.46 percent, respectively.

This suggests that the company has clearly out-performed the previous year, both in top-line and bottom-line. The company’s cost of sales decreased in 2007 over 2006 by 14.53 percent to N164 billion from N192 billion in 2006.
The decrease was lower than the decrease in turnover which was down by 11.09 percent to N186 billion, thereby leading to an increase of 28.61 percent in gross profit to N21.45 billion. This resulted in an increase in the gross profit margin from 7.98 percent in 2006 to 11.54 percent in 2007. The operating profit grew marginally by 36.64 percent in 2007 to N8.11billion while PAT and minority interest grew marginally by 78.22 percent to N5.48bn in 2007 from N3.07 billion in 2006. A further analysis of the company’s turnover shows that Fuels accounted for 84.7 percent, Lubricants and other products, 4.64 percent, Gas 2.65 percent, Non-fuel: 5.95 percent and others, 2.18 percent.

In 2007, the company paid a dividend of N6.00k and a bonus of 1 for 5 as benefits to its shareholders at the end of 2007 financial year.
Oando’s performance over the years had contributed to its share price reaction to the market downturn. It would be recalled that the share price had reached a high of N282.77 and a low of N115.43 this year. However, the stock closed Monday at N148.11 even as a cursory look at its performance since its last public offering in 2004 showed that the stock had been fairly stable.

Given that the hybrid offer was done at a price of N95 per share to existing shareholders and N97.50 per share to the investing public. At current price, those who bought the shares at N97.5 per unit in 2004 still maintain a gain of 34.2 percent even after they must received a dividends and bonuses over the years.

Oando had informed market operators that investment in gas distribution and acquisition of strategic upstream assets remained the corner stone of its future profitability and viability. “We intend leveraging on the immense value imbedded in our downstream marketing business to unlock the potential that these two sectors hold for the immediate and future benefit of all stakeholders within the group company. Accordingly we shall be exploring in the immediate future, this opportunity to create a future of growth and robust profitability anchored on a diversified platform”.

The directors in a note to the Nigerian Stock Exchange (NSE) had while presenting the half year results in 2008 explained that the results underscore the board and management’s commitment to becoming the leading integrated energy solutions provider in West Africa and Africa as a whole in the immediate future.

Further analysis of the result for the period ended June 30, 2008 showed that the company continued to maintain a strong net assets base as its balance sheet closed at N47billion, which was 94 percent higher than prior year position but almost same with balance as at the end of 2007 audit year.
The growth in net asset base was attributed to strategic investment made by the company in the last quarter of 2007 the impact of which had begun to tell on the profitability level of the company.
Current assets increased by N84.21billion from N55.43billion in the same period last year and 56 percent over 2007 audited number.
This was underpinned by a combination of high volume of business transaction and efficient working capital management culminating in cash balance level of over N62billion or over 400 percent increase over prior year position.

Official data and recent forecasts had consistently shown Oando’s earnings power strengthening especially from its supply and trading and marketing businesses. Adewale Tinubu, the managing director said that the half year position was a reflection of the consistent improvement in operational efficiency that has since become the company’s hallmark. “Our supply and trading business continued from its strong first quarter performance to deliver unprecedented profitability compared to previous performances. The division in addition to other non-marketing businesses within the Oando Group continues to contribute strongly to the profitability of the group aided by stability of product supply and near-stable macro economic factors”, he said.
In addition, the growth in earnings had been hinged on improved margin efficiency experienced on white products, seamless supply chain management processes, proactive cash management; efficient working capital re-alignment and strong organic growth.

The company’s turnover for the period under review stood at N124.42billion
compared to N105.98billion in the previous year. This represented an increase of 17 percent in turnover. The increase of 17 percent was principally attributed to improved supply chain logistics, regular and steady supply of petroleum product and stable macro economic factor.

According to the chief executive, “improved margin efficiency further ensured our gross margin surpassed the growth recorded at turnover level with a significant increase of 56 percent over prior period”.

However, analysts at FSDH Research have estimated a turnover of N242.61 billion for full year 2008, based on the assumption that Oando will generate a turnover of 30.51 percent over full year 2007. “ We estimate EBITDA of N12.52 billion based on EBITDA margin of 5.16 percent and a PAT of N7.28 illiobn based on a PAT margin of 3 percent”.

[hispy99]

Oando acquires 30% interest in Akepo oil field
Monday, 05 January 2009 00:27 OLUSOLA BELLO

Oando Exploration and Production Limited (OEPL), the upstream arm of Oando plc, has announced the acquisition of 75 percent interest in Exiles Resources’ 40 percent working interest in the Akepo Field through the signing of a Financial and Technical Services Agreement.

Under the terms of the agreement that is structured in two stages, Oando will re-imburse Exile Resource’s past expenses on the Akepo Field, and finance the development of the project, in return for taking 75 percent of Exile’s current economic interest in the project. This will see Oando own 30 percent equity stake in the entire project, subject to the approval of the relevant authorities and Sogenal Limited, the operator.

Tunde Ogunnaike, chief executive officer, OEPL, stated that “the company is excited about this acquisition as it is in line with our plans to boost our portfolio with near term oil and gas assets. As the technical and management partners, we will be conducting immediately, additional technical studies to facilitate the drilling of more wells to fast track the development of this block”.

Tony Henshaw, President and chief executive officer of Exile Resources, commenting on the agreement, said: “I am very pleased that Oando has joined Sogenal and Exile in the Akepo Project. In the current uncertain financial climate, Oando’s financial strength and capability, and experience in the Nigerian sector will enable the project to move forward to first oil production in the earliest timeframe, and Exile looks forward to working with Oando and Sogenal in the future on other projects in Nigeria”.

The Akepo Field is located within OML 90 situated offshore in the south eastern part of Nigeria. Originally a joint venture agreement between NNPC and Chevron, the marginal field was awarded to Sonegal during the 2003 marginal oil fields allocation rounds in 2003 by the Department of Petroleum Resources.

OEPL is a subsidiary of Oando plc, Nigeria’s foremost integrated energy solutions provider. OEPL is currently the operator of two oil blocks – OPL 278 and OPL 236. The company is also a Local Content Vehicle (LCV) partner with Agip on OPL 282 and has a 45 percent non-operating participatory interest in a marginal field, Obodeti-Obodugwa (former OML 56). These fields are in different stages of development and will significantly increase Nigeria’s oil and gas reserves.

Exile Resources Inc. is a Toronto, Canada– based oil and gas exploration company advancing the development of Akepo oilfield in the shallow waters of the Niger Delta. The company is also pursuing additional oil and gas exploration and development opportunities in Africa.

[zainabusman]

Originally Posted by billions

OANDO PLC
3RD QUARTER 2008
2008 2007 %CHANGE
TURNOVER N198.644b N174.281b 14
PROFIT BEFORE TAXATION N7.292b N4.416b 65
TAXATION (N1.733b) (N852m) 103
PROFIT AFTER TAXATION N5.560b N3.565b 56
NET ASSETS N45.8b N26.3b

For those who are interested in diversifying away from banking and Insurance, OANDO is looking attractive with a forward PE of about 9. The dividend yield at 8% is also comparable to what is on offer in the banking sector.