Saturday, October 24, 2015 10:05 am
Nigeria’s oil and gas giant, Oando Plc has posted its long-delayed 2014 FY results, alongside its Q1 and Q2 2015 results. But they were abysmal and not impressive
The company racked up record after-tax losses of N183.9 billion in FY 2014.
The results announced by Oando at the NSE showed that mounting losses continued into 2015, with a N20.9 billion after tax loss in Q1.
But the half year result showed:
Shareholders recorded a loss of N324.75 per share compared to a value of N116.85 last year.
Read all the results here:
In the H1 result, Oando however hints of a silver lining. To improves the company’s bottomline, Oando says it has signed an agreement to sell 60% stake in Oando Downstream to Helios/Vitol JV for a total consideration of $461 Million.
Mr. Wale Tinubu, Group Chief Executive, Oando PLC said: “Our Nation is experiencing Change, as witnessed from the tone of redirection in the oil and gas industry, which will lead to improved accountability and operational efficiencies in our sector. Our business is also experiencing this Change with the sale of 60% of our Downstream business in line with our strategic goals of placing our fundamental growth expectations on the Upstream, the cash proceeds of the divestment will be utilized towards debt reduction to shore up our balance sheet in these challenging times. We are encouraged by our recent success in the Upstream which has seen an 11 fold increase in production and 82% increase in 2P reserves as well as a substantial reduction in our acquisition debt. Our strategic focus is to increase operational efficiencies, whilst creating the necessary platform to be the partner of choice to the IOC’s as they continue their divestment programmes”.
For now, the late release of the results and the poor trading figures have drawn critical reactions.
ProShare says: “Apart from the poor numbers, we are less impressed with the constant unethical pattern employed/deployed by the firm in releasing its earnings reports in the recent years- this questions its corporate governance integrity.
“We are of the opinion that delaying audited reports for 10months is like infringing on the rights of investors and breaching the mutual contract with the investing community at large- we remain worried why SEC and NSE treated this unethical act with less sense of responsibility. This may continue to weigh on or deplete the feeble investors’ confidence in our opinion.
“Oando declared a loss of N183.89billion, representing 13264.19% (YoY) decline for the 2014 financial year(FY’14). We observed a sustained decline in PAT performance since Q1’14 with bleak or no light at the end of the tunnel as bottom-line of the Oil Giant fell further by -67.55%(QoQ) and -491.16% (YoY) respectively”
Read more of the ProShare report: The operating strategy of the firm appeared to have failed the shareholders woefully