Oando Delivers 52% Increase in Profit After Tax

In line with Oando’s corporate objectives, year 2008 was largely devoted to expanding the Group’s diversified platform as the company is geared to become the largest integrated energy solution provider in Africa. The performance during the year at each of the divisions supports this goal and reinforces our belief in the sustainability of this model.

Commenting further, Mr. Tinubu said, “The year will go down as a milestone in Oando’s upstream diversification programme. It is the year we emerged Nigeria’s first indigenous company with producing deepwater assets by the acquisition of stakes in offshore blocks OML 125 & 134 and we increased our state-of-the-art rigs fleet to three”.

Pursuant to this, Oando was able to grow its business considerably within the year in the exploration and production entity where revenue growth was propelled by these substantial investments, and in its traditional marketing business, where increased trade volumes and efficient supply chain management resulted in significant performance improvements. In general, Oando’s resilient performance in 2008 underlies the Group’s solid fundamentals.

Supply and Trading Limited – the trading arm of the Group- took advantage of emerging opportunities along the energy value chain as the largest private importer of petroleum products into Nigeria. The Gas division also performed creditably, having completed the Lagos Phase Three Project connecting the Industrial hubs in Lagos. Effort at replicating same feat in the Eastern part of the country is near completion stages.

“Our financial objectives for 2009 are clear: generate sustainable organic growth and improve our margins. To accelerate this growth we will strengthen our upstream and gas divisions whilst continuing our rigs expansion programme”, Mr. Tinubu further said.

On the prospect for 2009, Mr. Tinubu enthused: “We will be prioritising the completion of our ongoing 128km pipeline construction in the southeast and the captive power plant to boost our revenue generation, whilst expecting reasonable returns from our recent upstream investments and provision of rig services to the international oil companies. We therefore approach 2009 with confidence, as we expect strong prospects that outpace the market for every entity in the group on the back of prudent investments, improved execution and operational efficiency gains leading us to another robust and exciting year end”.

The board voted to recommend a dividend of N3.00 for each ordinary share of 50 kobo in addition to the interim dividend of N3.00 paid within the financial year. This brings to N6.00 each the total dividend for the year subject to shareholders’ approval at the next Annual General Meeting.