Oando Plc has announced a reduction in its loss position for the third quarter ended September 30, 2016 to N35.886 billion, which is lower than the loss of N47.631 billion in the corresponding period of 2015. Revenue grew by 26 percent to N330 billion, from N262 billion in the corresponding period of 2015.
Commenting on the results, Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said: The third quarter witnessed the Federal Government of Nigeria establish a ceasefire with the militants responsible for production disruptions in the Niger Delta, leading to stabilized daily productions from our assets and expectations of imminent increases to our 2015 production highs of 56kbbls/day.
We have also been proactive in our cost management initiative to ensure maximized value extraction for every barrel of oil produced as the global oil price still lingers below $50/bbl. We are pleased to have executed a sales and purchase agreement (SPA) with Helios Investment partners for $116 million, representing 49 per cent legal voting rights in the company midstream business, of which the proceeds of the divestment will be utilised towards the company debt restructuring initiative.
Our trading business has grown significantly this year having exported over 11 cargoes of crude with volumes exceeding 11mmbbls and an additional 31 cargoes of other oil based products year to date. Our business model of dollar denominated earnings is taking shape as evidenced from the increased revenue line 95 percent and future increases from the Upstream business through increased daily production rates and export trading businesses through increased lifting, with a focus to return our business to profitability by year end.
Market analysts have said that the slump in global oil prices continues to have far-reaching implications on indigenous companies such as Oando. In Nigeria, oil companies are faced with an even more challenging environment including; production disruptions by militant activities in the Niger Delta. Oando witnessed a 22.7 per cent decrease in oil production from 53,169 boe/day in third quarter 2015 to 41,094 boe/day in third quarter of 2016.