By Kingsley Ogunwa InvestAdvocate
Lagos (INVESTADVOCATE)-Oil marketing major, Oando Plc said on Thursday it plans to raise N40 billion fresh capital to boost its operations, according to Wale Tinubu, group CEO of the company at the “Facts behind the Figures” presentation at the Nigerian Stock Exchange (NSE).
Tinubu said the N40 billion will be raised through strategic investors and added that investors of the company will decided if the fund raiser will be by way of convertible loan or other ways. “Talking of several strategic investors, will decided if it’s a convertible loan or we borrow,” he said.
However, Tinubu did not give further details on the proposed fund raiser.
The company amidst a barrage of losses in 2015 had sought to raise fresh N80 billion ($402 million) through rights issues.
Oando had in early December 2014 did a $300 million (N48.8 Billion) rights issue which took place simultaneously both in the NSE and the Johannesburg Stock Exchange (JSE) Ltd.
Oando which had delayed in filing its results for the year ended 31 December 2016 had recorded a profit after tax (PAT) of N3.5 billion representing a 107 percent increase from the loss of N49.6 billion 2015.
A further review of the company’s result shows that turnover increased by 124.0 percent to N455.7 billion from N203.4 billion in 2015, according to the report published by Proshare.
The CEO of the company while commenting on the result said: “2016 saw the country plunge into a recession, the first in over 2 decades, besieged with liquidity constraints, devaluation of the naira and a slump in oil earnings due to low oil prices intensified by the insurgency in the Niger Delta.
We were proactive in the timely execution of our restructuring program of Growth in our upstream division; deleverage, through divestments resulting in a net debt reduction of N125bn; and Profitability by focusing on dollar denominated earnings. In the, upstream we witnessed a decline in production but an increase in our 2P Reserves from 445mmboe in 2015 to 469mmboe.
We are hopeful that the FGN will establish a long term resolution to the conflict in the Niger Delta which will positively impact the oil and gas industry, consequently ramping up our daily production. In the Midstream we concluded the partial divestment of Oando Gas and Power (OGP) to Helios Investment Partners to further expand our gas footprint, whilst in the Downstream our trading business continued to make in-roads in crude lifting. As we enter a new phase in our business evolution we are optimistic about 2017 and look forward to even more successes having braved the challenges of 2016.”
Also, a review of the company’s first quarter (Q1) result for the period ended March 31, 2017 shows that PAT declined 58.3 percent to N1.71 billion from N4.10 billion recorded in the corresponding period of 2016.
Revenue increased 575.2 percent to N138.3 billion from N20.4 billion reported a year ago.
Shares of Oando at the close of Thursday’s trading on the Nigerian bourse declined 0.31 percent to N9.54 from N9.57 posted the previous session; losing 0.03 kobo per share
