Oando remains optimistic despite slump in fuel sales
NIGERIA's biggest fuel retail chain, Oando, which is dual-listed on the JSE, upped profit on lower sales during the year ended in December.
Strikes against higher pump prices along with workdays lost during Nigeria's elections saw sales drop nine percent to $1,5 billion (R11,8 billion).
Expanding its non-fuel range helped Oando's operating profit jump 34 percent to $64 million (R503 million).
The need to finance Oando's Greater Lagos Phase II and III gas distribution project saw total liabilities double to more than $1 billion.
Adewale Tinubu, Oando's chief executive, said: "Our gas business was affected by the maintenance of the gas pipelines which constrained gas supply during the year. The anticipated completion of the ongoing pipeline expansion in Lagos could not be met due to delays in the arrival of acquired pipe as well as inexplicable logistic logjams."
Oando is also investing heavily in exploration.
"The returns on this investment are expected to boost the group's profitability and take us closer towards our strategic goal of being the leading integrated energy solutions provider in Africa," Tinubu said.