Wale Tinubu, CEO of Oando

Troubled Oando Plc has issued a profit warning to investors with respect to its expected Q2-16 earnings release.

In a release to the Nigerian Stock Exchange, the company stated:  “the impact of the Naira devaluation by the Central Bank of Nigeria (“CBN”) is expected to amount to an unrealized foreign exchange loss arising from USD denominated liabilities, outstanding bank trade facilities as well as vendor payables”.

As at the time of the devaluation the company had USD denominated borrowings of  $261 Million in Naira dominated earnings businesses, consisting of  $68 Million in core loans, $89 Million in bank trade facilities, $83 Million in Asset Financing and $21 Million in other payables.

The recent  40% devaluation of the Naira is expected to lead to losses on these foreign exchange exposures, the company said.