By Okechukwu Nnodim

Oando Plc on Wednesday announced the payout of a total dividend of N5.4bn to shareholders of the company.

The firm, which has primary and secondary listings on the Nigerian Stock Exchange and Johannesburg Stock Exchange, said the shareholders received the returns on their investment on August 31, 2011.

The Head, Corporate Communications, Oando, Mr. Meka Olowola, in a statement, said the payment represented N3.00 for every ordinary share of 50 kobo each totalling 1,810,169,256 shares held as at April 29, 2011.

According to him, shareholders of the firm, had in June approved the proposal of the board of directors at the company’s 34th Annual General Meeting in Lagos.

He added that the 2010 dividend payout increased by 100 per cent compared to N2.7bn paid the previous year, inclusive of an award of ‘one for four’ bonus shares.

Olowola noted that the Group financial result for 2010 showed that turnover increased from N336.9bn in 2009 to N378.925bn in 2010. Profit before tax stood at N24.318bn compared to N13.512bn in 2009.

“The company seems poised to surpass this performance in 2011 as half- year turnover grew by 55 per cent to N267.8bn from N172.9bn in 2010. Profit before tax grew by 33 per cent to N12.8bn in relation to N9.6bn posted in 2010, while profit after tax grew 25 per cent to N6.7bn compared to N5.3bn same year,” he said.

According to the statement, the performance underscores the resilience of the company’s integrated business model, which leverages scale, diversity and market leadership in delivering positive result in the face of a challenging environment.

It quoted shareholders to have said that the dividend pay-out was a welcome development, as they commended the firm for keeping to its promise of delivering value and paying dividend year on year.

“Also applauded is the bonus awarded to shareholders for the second year running,” it added.

The energy firm said it envisaged another bumper reward for its shareholders in the next financial year, as it is expected to benefit “tremendously” from changing regulatory framework such as the local content Act and Petroleum Industry Bill in favour of local energy companies.

It further noted that its gas and power division had consistently shown growth increase with foray into power and natural gas infrastructure.

Analysing Oando’s stocks, Vetiva capital, a stock broking firm in the country, said the energy company offered an upside potential of 48 per cent in the coming year.

“Our revised sum-of-the-parts valuation gives a fair value of N60.89 and a target range of N69.61 to N75.05. Our target range indicates a midpoint of N72.35, which underpins an upside potential of 48 per cent relative to the stock’s current price,” the firm said in a statement.

Source: Punch