Oando, Nigeria’s leading indigenous Oil and Gas producer, has paid N2.4 billion dividend to her shareholders even as it continues to embark on projects that will keep the company on a growth trajectory.
The Board of Oando recommended a 30K dividend for the 2013 financial year and an interim 70K dividend for the six months ended June 30, 2014, which amounted to N2.4 billion at N1 per share.
The Group Chief Executive Officer of Oando, Wale Tinubu, while speaking on the development made it known that the company would have been able to pay a dividend of N1 but for the acquisition of Conoco Philips, which resulted in N15 billion in interest payments.
It will be recalled that Oando acquired Conoco Philips Nigeria, for $1.5 billion, a move that turned them into becoming Nigeria’s largest indigenous oil and gas producer.
As a result of the acquisition, the daily oil production of Oando is expected to increased by 600% which isequivalent to 45,000 b/d, and an annual revenue of over US$600 million.
“With an eye to the future, we took on our largest and most daring feat with the acquisition of ConocoPhillips Nigeria, adding capacity to support our future growth plans,” said Tinubu.
While Oando is number one in Nigeria, on a global scale, it is 60th in terms of production and the investment of the company is beginning to yield fruit, as bottom line performance has been stellar and impressive.
In a statement from the company, it was gathered that for the first six months through June 2014, Oando’s profit after tax (PAT) surged by 110 percent to N8.9 billion from N4.27 billion the same period of the corresponding year (HY) 2013.
Also, the first half of 2014 has shown positive indications from its active strategic initiatives; upstream investments, midstream expansion and downstream optimization and based on its Q2 2014 performance, it is likely to exit the year with a N24 billion to N30 billion profit.