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10th August 2007

Oando Delivers Impressive Half Year Results

• Profit Before Tax increases by 51% to N2.94 Billion
• Profit After Tax (PAT) increases by 58% to N2.30 billion

Oando Plc, Nigeria’s leading integrated energy solutions provider with operations geographically spread across West Africa, today announced unaudited results for the six months ended 30 June 2007.

The company’s Profit Before Tax grew by 51% from N1.95 billion in 2006 to N2.94 billion in 2007. The increase is a consequence of improved profitability of all the business entities, coupled with significant growth in the company’s non-fuel revenue income base,

Profit After Tax also witnessed an increase of 58% from N1.46 billion for the corresponding period in 2006 to N2.30 billion for the first half of 2007. This current performance underscores the positive contribution from our subsidiaries, the continuous and effective cost containment efforts of management which resulted in lower growth in operating costs compared to the gross margin for the first half of this year.
Oando Plc, whose primary businesses include Petroleum Marketing, Supply & Trading, Natural Gas distribution, Energy Services and Exploration and Production is listed on both the Nigerian Stock Exchange and the JSE Limited. The group announced the independence of each entity earlier this year in a bid to further drive individual performance and profitability.

Consequently, the profit attributable to the group grew by 42% from N1.31b to N1.86bn. This growth is at par with the 42% increase in profits attributable to group that was experienced in the previous year. This performance underscores the positive contribution from each subsidiaries and the benefit that will accrue to the shareholders of Oando upon the full completion of the share swap exercise.

Commenting on the performance, Mr Wale Tinubu, Group Chief Executive Officer, stated “Despite the challenges faced during the first half of the year, including volatile crude oil prices, general and industrial strike actions and relative scarcity of some petroleum products, Oando group continues to deliver impressive profit growth. We look forward to further strong performance and growth from our new and existing businesses as we take advantage of the significant opportunities available to us in our chosen markets. Oando is strategically positioned to become one of the foremost integrated energy players in Africa through diversification and acquisition.”

Speaking further, Mr Tinubu added, “Oando anticipates exceptional growth ahead from our continued drive to increase volumes of higher margins products such as lubricants, and sustainable contributions made by the Group’s newer businesses. The Group is focussed on tight cost management, further improving operational efficiencies and increasing value for all of its stakeholders. With changes to the Group structure to increase transparency and visibility of earnings, along with moves to separate the Marketing business allowing for simpler comparison of our business with peers, we hope investors will realise the true value inherent in the Group as we continue to realise our vision of creating Africa’s pre-eminent integrated energy group”.

According to Mr Tinubu, “Following the trend of the half-year results, shareholders should expect even brighter year-end results. Our half-year results underlie our unwavering determination to continue to deliver strong result to the delight of our numerous stakeholders and we are optimistic that the company shall outperform its set target giving the enormous opportunities we believe abound in the market”, he added.

For more information please contact:

Tokunboh Durosaro
Head, Corporate Communications
Oando Plc
2 Ajose Adeogun Street
Victorial Island, Lagos
Phone: 01 2625857
Email: tdurosaro@oandoplc.com
www.oandoplc.com