Oando Plc · NSENG:OANDO
Oando — H1 2011 Earnings Presentation
18 slides from Oando's earnings presentation, July 2011
Slide 1: Half Year 2011 Conference Call
Oando Plc Half Year 2011 Conference Call July, 2011 Half Year 2011 Conference Call 1
Slide 2: Cautionary Statement
ne Cautionary Statement The information presented herein is based on sources which Oando Plc (“Oando”) regards dependable. This presentation may contain forward looking statements. These statements concern or may affect future matters, such as Oando’s economic results, business plans and strategies,
Slide 3: Contents
ne Contents 1. Operating Environment 2. Company Overview 3. H1 2011 Performance Review 4. Divisional Performances 5. Strategic Road Map 6. Q&A Half Year 2011 Conference Call 3
Slide 4: Operating Environment
Operating Environment • Nigeria’s H1 2011real GDP growth rate was 7.93% Strong GDP growth compared to 7.43% in Q1 2011, due to: 12.0% 10.0% • Stable foreign exchange rate (+2.5%); 8.0% 6.0% • Improved wholesale and retail trade; and 4.0% • Increased contribution of 17.6% from the oil sector. 2.0% 0.
Slide 5: Operating Environment
Operating Environment • Foreign Reserves experienced a year-to-date drop of Healthy Reserves ($/bbl) & Stable Exchange Rate (N/$) 14.3% due to: 45000 156 • Rising crude oil revenues (Q1: 36.9%) 40000 155 154 • Reserves closed the half at $31.7 Billion 35000 153 30000 • However, the following remain
Slide 6: Operating Environment
ne Operating Environment Petroleum Industry Bill (PIB): • Passage of the PIB before the new government was sworn in failed to be realized. • The bill may take a few more months to be passed as it must be read by all tiers of the new government/legislature. • One of the major objectives the bill seek
Slide 7: Company Overview
Company Overview • Oando is the largest publicly quoted energy • Oando has since diversified across the full company in Nigeria and sub-Saharan Africa’s value chain of the oil and gas spectrum. largest indigenous energy company, based Integrated across: on revenues – Upstream through Oando Explorati
Slide 8: Company Overview
Company Overview Upstream Division Midstream Division Downstream Division Exploration & Energy Gas & Supply & Marketing Production Services Power Trading Position(a Market A leading indigenous #1 #1 #1 #1 ) player • Rapidly expanding • Largest swamp drilling • First private sector • Largest indigeno
Slide 9: P & L Highlight
P & L Highlight Increase/ NGN’ Million H1 2011 H1 2010 Decrease 55% Turnover 267,812 172,859 55% Gross Margin 33,232 27,705 20% Turnover of N267.8 Billion Total non-interest expenses (16,965) (16,061) 6% Other operating income 4,475 5,904 -24% 33% EBITDA 20,742 17,548 18% Interest expenses (3,884) (
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights NGN Million H1 2011 H1 2010 Increase/ Decrease 48% Fixed assets 18% 159,508 135,210 Trade Debtors of N116.0 Billion Long-term receivables 40% 29,083 20,829 Inventories Trade debtors and 30,745 20,609 49% 34% 48% prepayments 116,012 78,466 S/T Borrowings of N69.5 Billion Bank
Slide 11: Sector Contributions
Sector Contributions H1 2010 H1 2011 PBT PBT 31% 32% 58% 59% 11% 9% Downstream Midstream Upstream PAT PAT 17% 45% 44% 14% 69% 11% Half Year 2011 Conference Call 11
Slide 12: Group P & L Highlight – Q2, 2011 Vs Q1, 2011
Group P & L Highlight – Q2, 2011 Vs Q1, 2011 Q2 % Q1 % NGN Millions Q2, 2011 Q1, 2011 H1, 2011 contribution contribution to to H1 H1 Turnover 152,833 114,979 267,812 57% 43% Gross Margin 16,422 16,391 32,813 50% 50% Total non-interest expenses (10.197) (6,936) (17,133) 60% 40% EBITDA 10,406 7,949 18
Slide 13: Sector Performances - Upstream
Sector Performances - Upstream Exploration & Energy Production Services Selected Data Selected Data Profit and loss Profit and loss NGN million H1 2011 H1 2010 Variance NGN million H1 2011 H1 2010 Variance Revenue 15,263 10,017 52% Revenue 7,275 6,720 8% Gross Margin 11,512 7,870 46% Gross Margin 6,
Slide 14: Sector Performances - Midstream
Sector Performances - Midstream Power & Gas Selected Data Profit and loss NGN million H1 2011 H1 2010 Variance Revenue 7,738 8,379 (8%) Gross Margin 2,343 1,836 28% EBITDA 2,026 1,688 20% EBITDA Margin 26.2% 20.1% Profit before tax (PBT) 1,123 1,205 7% Profit after tax (PAT)/Net Profit 786 867 (9%)
Slide 15: Sector Performances - Downstream
Sector Performances - Downstream Supply & Oando Trading Marketing Selected Data Selected Data Profit and loss Profit and loss NGN million H1 2011 H1 2010 Variance NGN million H1 2011 H1 2010 Variance Revenues 157,594 140,511 12% Revenues 100,041 82,161 22% Gross Margin 2,728 3,689 (26%) Gross Margin
Slide 16: Strategic road map
Strategic road map Transformation from a downstream giant to a full value chain indigenous champion across West Africa Upstream Division Midstream Division Downstream Division Exploration & Energy Gas & Supply & Refining & Marketing Production Services Power Trading Terminals • Enhance • Fully contr
Slide 17: Q & A
Q&A www.oandoplc.com Half Year 2011 Conference Call 17
Slide 18: Investor Relations Contact
Investor Relations Contact Tokunbo Akindele Head, Investor Relations +234 (1) 2601290-9 Ext 6396 aakindele@oandoplc.com Half Year 2011 Conference Call 18