Oando Q1 2015 revenue increases by $100m amid low oil price

Oando Energy Resources Inc. last Friday reported its first quarter (Q1) 2015 results that saw an increase in its net revenue.

The acquisition of ConocoPhillips producing assets of OML 60 to 63 saw its 2015 Q1 revenue increase by 311.2 percent year-on-year (y/y) to $132.4 million from $32.2 million. On a quarter-on-quarter basis, revenues in the first quarter of 2015 decreased by $41.6 million from $174.0 million in the fourth quarter of 2014.

The company had a net loss of $21.1 million in the first quarter of 2015, as compared with a net loss of $39.9 million in the first quarter of 2014.

Commenting on the results, Pade Durotoye, CEO, Oando Energy Resources, said: “The recent acquisition of the Nigerian upstream business of ConocoPhillips Company again drove substantial improvements in production over the prior year period and daily production remained relatively consistent on a sequential basis compared with the fourth quarter of 2014.”

In the first quarter of 2015, production increased to 5.0MMboe (average 55,399 boe/day) from 0.4 MMboe (average 4,531 boe/day) in first quarter 2014 and was consistent with 5.0MMboe achieved in the fourth quarter of 2014.

“During the first quarter of the year, as oil prices continued to weaken, we proactively took measures to improve liquidity by realising $226.2 million of approximately $313.7 million in total fair value through settlement and re-establishing our financial commodity contracts at lower prices,” Durotoye said.

Capital expenditures of $37.8 million were incurred in the first quarter of 2015. The capital expenditures consisted of $20.8 million at OMLs 60 to 63, $12.8 million at OML 125 and $3.9 million spent at Qua Ibo and Ebendo.

 

Josephine Okojie