Indigenious oil company, Oando PLC has registered yet another win with the publication of N4.2 billion profit-after-tax (PAT) in its Q1 2018 results, despite the ongoing SEC-led forensic audit into the affairs of the firm.

Oando has cashed into the favourable micro and macro business environment characterised by an increase in national oil production, exchange rate stability, as well as an increase in global oil prices which averaged $66 per barrel in the first quarter of the year, $3 more than the projected average of $63 for 2018 and 2019.

An analysis of Oando’s financials shows that the company’s turnover grew by 9% to N150.5 billion from N138.4 billion (Q1 2017); gross profit increased by 108%, N27.9 billion compared to N13.4 billion (Q1 2017); and profit-after-tax increased by 145%, N4.2 billion compared to N1.7 billion (Q1 2017).

These numbers are reflective of Oando’s increase in production to 4%, 3.6MMboe (average 39,556 boe/day) from 3.4MMboe (average 38,125 boe/day) in comparative period of Q1 2017 due to the reopening of the Trans Forcados pipeline.

In its upstream business, Oando recorded a net profit of N8.6 billion ($23.8 million) compared with N5.8 billion ($16.2 million) in the comparative period of Q1 2017.

According to the company’s statement, the increase in net income between the quarters was primarily due to higher revenues as a result of a general increase in the price of oil and gas commodities (Q1 2018: Oil -$65.49/bbl, Gas – $1.54/mcf, NGL – $13.59/boe, compared to Q1 2017: Oil – $51.74/bbl, Gas – $1.39/mcf, NGL-$9.62/boe).

Speaking on the results, Wale Tinubu, Group Chief Executive, Oando said: “Our Q1 performance was characterised by a stable operating environment, continued incline in crude oil prices, and the highest level of compliance by member countries’ of the OPEC Accord.

Considering the background of current industry trends, the Company is committed to maximizing throughput rates to ensure a positive financial performance in the ensuing quarters of 2018.”

Oando isn’t the only company who benefited from the increase in commodity prices and improved operating environment.

Exxon Mobil recorded a 16% increase in profit to $4.65 billion. Seplat declared a N6.2bn profit in the first quarter of 2018 compared to a loss of N5.8billion in comparative period of 2017.

Seplat’s commendable recovery was due largely to undisrupted exports via the TransForcados System (TFS). This is now the third consecutive quarter that the firm is posting profits.

Royal Dutch Shell posted a 42% increase in profits to $5.3 billion, $1.6 billion more than in Q1 2017, and the compnay’s highest earnings since Q3 2014 when oil price averaged $102 per barrel.

A review of other activities pertaining to Oando in 2018 is further evidence that the year has indeed started favourably for the company.

In January, Oando reached a peace accord with Alhaji Dahiru Mangal by officially confirming him as a substantial shareholder of the company and successfully addressing and clarifying all the issues raised by AlhajiMangal in his petition to the Securities and Exchange Commission (‘SEC’).

In the company’s official statement on the peace accord the Group Chief Executive, Wale Tinubu said: “…Shareholders must be confident in the operations of the company they are invested in; this can only occur through active participation.’’

This statement speaks volumes of a company that has taken learnings from the fall out of the SEC investigation, to be more aligned with its most important stakeholders – shareholders – via active participation, dialogue and transparency.

Recently, the SEC gave a directive to lift the 175-day old technical suspension placed on free trading of the company’s shares.

This was a welcome relief for both the company and its shareholders, all of whom had been negatively impacted by the SEC directive.

The suspension prevented the true value of the company’s shares from being reflected and without a doubt it would have been a deterrent for potential investors and partners alike.

Against this backdrop it is commendable that Oando was still able to come out with positives on all its Q1 financial indices; the company’s sixth consequitve profit.

Ms. Ayotola Jagun, Chief Compliance Office and Company Secretary, Oando PLC in an interview with CNBC following the lifting of the technical suspension, said: “On day one, the day the suspension was lifted, 178 million Oando shares were on bid with only 5.5 million available for sale.

The company’s share price hit the NSE daily price ceiling of 10% by 10.45am; further evidence that there is a lot of interest in Oando shares and that the general mood around the market and our shares is positive.”

The company’s share price has witnessed commendable increase since it began trading on the stock exchange, rising from N5.99 as at April 11 to N9.15 as at close of trade on Monday, April 30.

Speaking on Oando’s Q1 2018 financials, AlhajiKabiruTambari,Oando shareholder with the Sokoto Zone Shareholders Association said: “I have to commend the management of Oando for the good results they have declared despite the difficulties the company has been experiencing.

I believe this will further help our share price to continue appreciating in the capital market. I commend Oando management and pray they continue this way throughout the year.”