The Nation Newspaper

Tag: Oando Plc

  • Oando’s net profit rises to N210b

    Oando’s net profit rises to N210b

    Oando Plc strengthened its earnings outlook with 164 per cent growth in net profit to N210.31 billion in the third quarter, underlining increasing attractiveness of the leading indigenous energy group.

    Oando recorded the highest gain at the Nigerian stock market yesterday as the nine-month report was released at the Nigerian Exchange (NGX).

    Oando’s share price rose by 9.99 per cent, a notch below the 10 per cent maximum daily allowable change at the NGX.

    Oando closed on bid at N46.80 per share, with market analysts expecting the rally to continue on the momentum of the third-quarter report.

    Key extracts of the interim report and accounts for the nine months ended September 30, 2025 showed that net profit after tax rose from N76.3 billion in third quarter 2024 to N201.31 billion in third quarter 2025.

    Earnings per share thus leapt to N16 by third quarter 2025 as against N6 recorded in comparable period of 2024.

    READ ALSO: Five apps that’ll get your life together before the year ends

    Total assets also expanded from N6.43 trillion by December 31, 2024 to N6.77 trillion by September 2025.

    Commenting on the results, Group Chief Executive, Oando Plc, Mr Wale Tinubu, said the group has further consolidated the gains achieved following its acquisition of NAOC’s assets last year.

    According to him, the group’s assumption of operatorship has been transformational, granting it the agility to act decisively and execute with precision in driving production growth and operational efficiency.

    He said: “Production uptime currently stands at 82 per cent, translating to a 59 per cent year-on-year increase in crude oil and gas production, which now averages 38,121boepd, clear evidence of the beginning of the dawn of unlocking the tremendous value our reserves possess.

    “During the period, we made meaningful progress in integrating operations, strengthening security and community relations, as well as resolving legacy issues inherited at the point of operatorship. Most notably, we achieved a partial recovery of substantial receivables that had remained outstanding for several years and made significant headway in renegotiating long-standing legal matters that had previously been fully provisioned for. These milestones underscore the depth of our leadership and our unwavering commitment to unlocking value”.

    He noted that across the group’s trading business, refined products volumes remained under pressure, largely due to the well-deserved and expected success of the Dangote refinery in meeting Nigeria’s import needs.

    “Consequently, our focus had shifted to expanding global crude exports and leveraging structured pre-export transactions, an area in which we have continued to record robust success.

    “In addition, we also executed the first tranche of our share distribution programme, delivering a 5.33 per cent dividend yield, with the second tranche scheduled for early next year. This is yet another tangible demonstration of our focus on creating and returning value to our shareholders.

    “As we enter the final quarter of 2025, we remain focused on further strengthening our balance sheet, accelerating production growth, expanding our trading footprint, optimizing our cash flows, and sustaining long-term value creation,” Tinubu said.

  • With Wale Tinubu’s leadership, Oando expands global footprint

    With Wale Tinubu’s leadership, Oando expands global footprint

     Oando plc, one of Nigeria’s leading energy companies, has recently made big moves in the international scene, expanding its presence outside its country of origin, and consolidating its activities throughout the entire value chain, writes Ibrahim Imoye

    Continuing with its bold plans to take its ambitions beyond Nigeria and indeed Africa, Oando Plc is steadily cementing its place as a formidable player in the global oil and gas industry.

    From the rich hydrocarbon reserves of Angola’s Kwanza Basin to the refining hubs of Trinidad and Tobago, the Nigerian energy giant is expanding its footprint with strategic acquisitions and partnerships that position it as a key contender in the international energy market.

    Beyond these recent headline acquisitions in Angola as well as Trinidad and Tobago, Oando had long before now, established a presence in São Tomé and Príncipe, where it participates in offshore exploration, as well as in Dubai and London, where it operates offices to oversee international trading and business development, sealing its place as a globally competitive entity.

    All these strategic business moves have significant implications for the company, the global oil industry, and Nigeria’s economic landscape, especially for Oando as a high-potential firm with roots in Nigeria and branches globally.

    The company’s entry into new markets, including its selection as the preferred bidder for the lease of the Guaracara Refinery in Trinidad and Tobago, gives it a headway into the Caribbean energy sector. The refinery, located in Pointe-à-Pierre, has a capacity of 175,000 barrels per day and is pivotal to the region’s oil industry.

    It is believed that these moves align with Oando’s strategy to diversify and expand its global footprint.

    Besides, the company’s acquisition of operatorship for Block KON 13 in Angola’s onshore Kwanza Basin, signified Oando’s commitment to strengthening its presence in Africa. The block is estimated to hold between 770 to 1,100 million barrels of oil, offering substantial exploration potential.

    For the oil and gas industry, Oando’s ventures are expected to boost its production capacity, contributing to global oil supply. The development of Angola’s Block KON 13, in particular, could enhance regional oil output, influencing supply dynamics in the African market.

    Furthermore, the collaboration between Oando and entities in Trinidad and Tobago and Angola is the continual of a trend of cross-border partnerships in the oil industry, with such alliances expected to lead to technology transfer, shared expertise, and more integrated energy markets.

    In terms of its implication for Nigeria’s economic growth, Oando’s international expansions are expected to lead to increased revenues, potentially boosting Nigeria’s economy. As one of the country’s prominent energy companies, Oando’s success abroad can translate into economic benefits at home.

    Read Also: From Aba to the World: How two friends built Rhymestreet Records to spotlight Nigerian talent

    In addition, these Oando’s winning moves  showcase the capability of Nigerian companies to operate on a global scale, enhancing the country’s reputation in the international business community.

    The Angola Deal

    Oando, through its subsidiary Oando Energy Resources (OER), recently won the operatorship of Block KON 13 in the Kwanza Basin. This was a strategic entry into Angola, one of Africa’s top oil producers.

    The block is estimated to contain between 770 million to 1.1 billion barrels of oil, offering a lucrative exploration opportunity. The deal expanded Oando’s portfolio into a high-potential market, enhanced its reputation as an African energy leader and aligned with Angola’s efforts to attract foreign investment into its oil sector.

    The block has two exploration wells previously drilled to a target depth of 3,000m, with oil and gas observed across various depths. With a 45 per cent participating interest, OER will lead the development of the block as operator, alongside Effimax (30 per cent) and Sonangol (15 per cent) as co-venturers.

    Commenting on the award, Wale Tinubu, Group Chief Executive, Oando Plc, said: “I am thrilled by our successful bid and award of Block KON 13 in Angola. This development underscores Oando’s relentless commitment to expanding our footprint across Africa and contributing to the continent’s energy sufficiency goals.

    “ I am confident in our ability to leverage our expertise to develop and maximize the value of this asset. We look forward to collaborating with our co-venturers and other key stakeholders to harness this opportunity and unlock its full potential for Angola and Africa as a whole”.

    This milestone, the company said, marked Oando’s strategic entry into the Angolan oil and gas market and represented a significant step in its long-term vision to grow its upstream operations across Africa.

    It also solidified the company’s position as a prominent player in the continent’s energy landscape, evolving from a local indigenous operator to a regional powerhouse.

    Following the company’s recent successful acquisition of NAOC Ltd in Nigeria, the addition of Block KON 13 further bolsters the company’s upstream portfolio and reflects its commitment to driving regional growth and energy security.

    Entering Trinidad & Tobago’s Downstream

    Recently, Oando was selected as the preferred bidder for the Guaracara Refinery in Pointe-à-Pierre, Trinidad and Tobago. The refinery, with a capacity of 175,000 barrels per day, was previously operated by Petrotrin before its closure in 2018.

    This move marked Oando’s entry into the Caribbean refining market, strengthening the company’s refining and trading business and expanding its presence in the Western Hemisphere as well as offering opportunities for collaboration with Latin American and Caribbean energy markets.

    Oando said the award underscored its track record of reliability, innovation, infrastructure development and aligned with its corporate strategic vision of expanding across the Caribbean region.

    The partnership, the company said, also represented a strategic bridge between Africa and the Caribbean as Oando’s involvement in the Refinery will serve as a catalyst for deeper Afro-Caribbean collaboration in the energy sector, paving the way for increased trade, investment, and knowledge exchange.

    Again, commenting on the deal, Wale Tinubu, said: “We are honoured by the confidence the Trinidadian government has placed in us with this award. This strategic investment aligns with our long-term vision of expanding into high-potential regions and growing our operational footprint, leveraging our vast technical expertise and global partnerships to finance projects.

    “We recognise the significance of this opportunity and look forward to working with all stakeholders to deliver maximum value for all parties involved.”

    Oando in São Tomé and Príncipe

    Long before the Angola and Trinidad and Tobago deals, Oando had been actively involved in oil exploration in São Tomé and Príncipe’s Exclusive Economic Zone (EEZ). The region, rich in untapped hydrocarbon resources, has attracted several international oil companies. Oando’s participation in the offshore blocks signified its commitment to growing its upstream operations.

    OER holds Oando’s interest in Blocks 5 and 12 in the Exclusive Economic Zone of São Tomé and Príncipe through its 81.5 per cent interest in Equator Exploration Limited (EEL).

    At the time, Oando said it was looking forward to the drilling of the Jaca-1 well anticipated at the end of 2021 in Block 6, adjacent to  Block 5, stressing that the well will test the presence of a petroleum system in the EEZ and is expected to considerably de-risk Blocks 5 and 12.

    The maritime boundaries of São Tomé & Príncipe encompass an area of approximately 160,000 square kilometers. The close proximity of São Tomé & Príncipe’s offshore waters to the proven hydrocarbon systems in the adjacent waters of Nigeria, Cameroon, Equatorial Guinea and Gabon suggests the potential for hydrocarbons, which is further supported by regional seismic data and petroleum seeps seen on the islands, the proponents of the deal said.

    Bird’s Eye View

    A Chartered Banker and Consultant, Orji Udemezue, believes that the recent moves by Oando were great steps and a show of confidence that Nigerian local companies are beginning to gain international recognition for their technical competence.

    Citing last year’s acquisition of NAOC, Udemezue who spoke on a national television, stressed that Oando shareholders are in for a jolly good ride in 2025 and beyond.

    “And that means that this company has great power to make wealth in the future, because the assets are huge. Pipelines, oil wells, loading bays and all of those gas plants, and flow stations. Right now, they have also gone downstream to strengthen their capacity to trade, moving to the Caribbean, strengthening the Afro-Caribbean footprints

    “ What I see Oando doing is a deliberate step to increase their capacity, not just on one side of the sector, but downstream and upstream. Now, they have settled with the upstream, even though the cash inflow for them will start coming soon. It’s already showing in their results.

    “And then now, downstream, by doing this, they’re going to have a very strong synergy with their productive capacity, so there will be an off-taker advantage. They have a refining capacity in Trinidad and Tobago, and they have an upstream capacity down here.

    “That way, the confidence people have in them, both in Africa and, in fact, globally, will go up. And before you know it, they will start being invited, because getting to Trinidad and Tobago is just like a contract that would have been given to an American or British company,” Udemezue said.

    Noting that the future of the company looks very bright, he advised the investing public that it is the best time to not just hold on to their shares, but also even invest more, recalling that the second batch of Oando’s stock dividend will happen June 30.

    “And beyond that, when they finish this issue, the real business is going to start both in Trinidad and Tobago, and, of course, they’re already starting ramping up the asset use in Nigeria. What’s going to happen? All the parameters are looking up. Revenue is going up hugely from their upstream activity, and, of course, profitability is also ramping up,” he argued.

    He added: “How do you judge when you want to buy a company’s shares? You look at the future cash inflows. That’s why I’m saying, for investors who have a long-term view, you find that Oando is a stock that will do wonders in the future. So holding on to it will be a great advantage for those who buy right now or who hold on to it,” he posited.

  • Oando wins top energy award

    Oando wins top energy award

    Oando Plc has been awarded the “Energy Deal of the Year 2024” at the Nigeria International Energy Summit (NIES) 2025 in recognition of its transformative $783 million acquisition of the Nigerian Agip Oil Company (NAOC) from the Italian energy firm, Eni.

    The landmark acquisition, a culmination of a decade-long strategic journey since Oando’s initial entry into the ConocoPhillips/NAOC/NNPC Joint Venture (JV) in 2014, through the acquisition of ConocoPhillips Nigeria’s business, doubled the company’s stake to 40 per cent  and established Oando as the operator of key upstream assets.

    The assets that came with the acquisition included 40 discovered oil and gas fields, extensive pipeline infrastructure, three gas processing plants, the Kwale-Okpai power plant with a total nameplate capacity of 960MW, and associated infrastructure, and the Brass River Oil Terminal, significantly boosting Oando’s total 2P reserves to 1.0 billion boe.

    The NIES ‘Energy Deal of the Year 2024’ award celebrated transformative and impactful deals that drive advancements in energy and economic growth. The award, which highlighted excellence in negotiation, strategic alignment, innovation, and collaboration, was a testament to Oando’s leadership and strategic vision in the energy sector.

    Read Also: Nigerian scholar receives Rare ‘Cum Laude’ distinction in Amsterdam

    At the Gala and Industry Award ceremony in Abuja, Dr. Ainojie ‘Alex’ Irune, Managing Director of Oando Energy Resources (OER), received the award, underscoring the company’s strategic focus to ramp up its production in a sustainable way. Post-acquisition, the company emphasized optimizing its asset portfolio, enhancing security measures, leveraging advanced technologies like data analytics and digitalization, as well as strengthening community partnerships.

    The latest award comes on the heels of Oando’s robust performance in 2024, bolstered by its $783Million acquisition of Nigerian Agip Oil Company (NAOC) in August 2024. The acquisition also significantly impacted the company’s full-year 2024 financial results, resulting in a 45 per cent surge in revenue to N4.1 trillion.

    Most recently, the company rewarded its shareholders with1.28 billion additional shares in the form of stock dividends.

    The shares distribution which is in two tranches was done to encourage long term value appreciation including future dividend prospects. The sheer size of the offering, with 1.28 billion shares distributed, makes it the biggest shareholder reward in Oando’s history.

    The Nigeria International Energy Summit, officially endorsed by the Federal Executive Council (FEC), serves as a global platform for stimulating discussion, interactions, and signing high-level deals. Oando’s recognition at this prestigious event underscores its leadership and strategic vision in Africa’s energy sector.

  • NAOC acquisition earns Oando award

    NAOC acquisition earns Oando award

    Oando Plc has been adjudged as the company with the most impactful and transformative deal in Africa

    At the Africa Energy Week (AEW) 2024, Oando  emerged winner of the ‘Deal of the Year’ award in recognition of Oando’s $783 million acquisition of the Nigerian Agip Oil Company (NAOC) from the Italian Energy firm Eni on August 22, 2024.

    The Africa Energy Chamber (AEC), the  organisers of the annual week-long oil and gas conference, hosted and recognised different stakeholders at a Gala and Award night held at the Cape Town International Conference Center (CITCC), South Africa.

    According  to the organisers, the “Deal of the Year” award recognises the most transformative and impactful deal in the energy sector – honouring excellence in negotiation, strategic alignment, innovation and collaboration – and celebrates deals that drive advancements in energy and economic growth.

    Read Also: FULL LIST: Chiefs of Army Staff who died in office

    The NAOC acquisition, 10 years in the making since Oando’s initial entry into the ConocoPhillips/NAOC/NNPC Joint Venture (JV) in 2014 when the company acquired ConocoPhillips Nigeria business, doubled Oando’s stake in the JV to 40 per cent and operator of the assets.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu said the company was delighted and honoured to receive the ‘Deal of the Year’ award, which further celebrated what has been a remarkable year on many fronts.

    “First, we marked our 30th anniversary as a business, then concluded our strategic plan to acquire our second international oil company in a decade, Nigerian Agip Oil Company (NAOC) and step up to the role of operator.

    “This award is more than just an accolade for a successful deal closure; it represents a public acknowledgement of the culmination of 30 years of grit, hard work, resilience, and sheer belief in our vision,” Tinubu said.

    He pointed out that NAOC acquisition was the culmination of a decade of preparation, strategic planning, and unwavering commitment to a vision of becoming Africa’s first indigenous international oil company.

    According to him, the acquisition was a testament to the organisation’s 30-year journey spanning the entire energy value chain, with consistent and deliberate actions at each stage that have led to the advancement of indigenous participation in the industry.

    He commended the staff,  financiers and partners of Oando for their belief and role in making the deal and the resultant award a reality.

    With this year’s AEW theme of “Invest in Africa Energies: Energy Growth Through an Enabling Environment”, the AEC, through the AEW Awards 2024, recognised other persons, International (IOCs) and National Oil Companies (NOCs) across the continent through awards in 10 categories.

  • Oando records six per cent increase in turnover

    Oando PLC has recorded N7.2 billion profit-after-tax (PAT) for this year’s six months ended June 30.

    The oil giant, whose operation was grounded by the Securities and Exchange Commission (SEC) when it laid siege to its head office with the police, weathered the storm and recorded a six per cent increase in revenue of N315.4 billion, from N297.3 billion, in comparative period of 2018.

    Since its acquisition of ConocoPhillips Nigeria in 2014, Oando has embarked on a proactive drive to significantly reduce its debt and liabilities.

    The group reduced its total borrowings for the period by five per cent to N200.7 billion, from N210.9 billion in FYE 2018, totalling a 58 per cent reduction in debt since 2014, from N473.3 billion.

    At the same time, its upstream business reduced borrowings by 13 per cent to $221.13 million, compared to $255.6 million in FYE 2018, totalling approximately 72 per cent debt reduction, from $801.6 million in 2014.  The company further reduced its Reserve Based Lending (RBL) facility by a 99 per cent.

    Commenting on the results, Oando’s Group Chief Executive Adewale Tinubu said: “Half-year 2019 was a positive period for us as we achieved strong top and bottom line earnings, despite our overall performance being tempered by a one-off N14 billion charge.

    “Our crude oil and natural gas production grew by 15 per cent and eight per cent, respectively, compared with the similar period last year, while we also achieved a significant reduction in our RBL facility to approximately $0.4 million from $450 million at inception – a 99 per cent reduction.”

    In the period under review, the oil sector accounted for 9.1 per cent of the country’s Gross Domestic Product (GDP), compared to 9.6 per cent in H1 2018. Oil export for the period was at 1.37 million barrels per day (mbd) or about 42.5 million barrels, a shortfall from the 1.47mbd or 44.1 recorded in the preceding year.

    “In addition, the Nigerian economy advanced 2.01 per cent year-on-year which was below market predictions of 2.1 per cent, compared with 2.4 per cent growth in same period of 2018, mainly due to a steeper contraction in Nigeria’s oil sector which shrank by 2.4 per cent in the first quarter of the year.

    Though the country witnessed no movement in its oil production compared with same period of 2018, Oando witnessed an increase in its oil production, which was attributed to the ingenious measures put in place by the company’s management and its partners to ramp up production. During the six month period ended June 30, 2019, production by the upstream subsidiary, Oando Energy Resources (OER) increased by eight per cent at 40,873boe/day, compared with 37,814boe/day in the same period of 2018. Oil production increased by 15 per cent from 14,675bbls/day in H1 2018 to 16,876bbls/day in H1 2019, and natural gas production increased by eight per cent from 118,866mcf/day in H1 2018 to 128,533 mcf/day in H1 2019.

    In the downstream, Oando Trading completed approximately 7.3 million barrels of crude oil trades under various contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 228,970 MT of refined products in H1 2019.

    Also worthy of note is Oando’s full divestment from its hitherto midstream business Axxela, formerly Oando Gas and Power to Helios Investment Limited, signifying a full divestment of its naira earning businesses and reinforcing the company’s stance as a partner of choice for investors into the country.

    On the divestment, Wale Tinubu said: “We also concluded the divestment of our residual interest in Axxela for US$41.5 million, in line with our strategy of divesting from non-strategic assets and remain on track to deliver on all our initiatives for the year.”

    Oando is one of the few companies that have been through the storm and still continues to wax strong, from purchasing a whopping $1.6billion IOC Nigerian assets when oil prices were approximately $112, witnessing a crash in oil prices immediately after the purchase, to recording the largest loss in corporate history, the company continues to validate the saying that you die when you stop trying.

    At the recently concluded Nigeria Oil & Gas Conference, Wale Tinubu, gave a resounding speech, highlighting that the ConocoPhillips transaction was extremely challenging in the sense that the company had to pay a non-refundable deposit of $450m and had to worry about how the rest of the capital would be raised in a short time frame. There was also the unexpected delay in getting Ministerial consent, despite being an indigenous company which led to the transaction stretching for 18 months.

    Wale Tinubu said: “The bad news is not only was it a very expensive transaction then because the price of crude oil was $112 when we closed and by December crude oil prices had dropped to $60 per barrel, one year after the acquisition, crude oil prices had dropped even further to $30 a barrel.  You can imagine us signing the largest cheque in our corporate history and immediately after the market doing a complete reverse. This was coupled with being in an era where Niger Delta militancy was on a high, production was severely hampered; we had a large swamp rig operation and pipelines network which were affected”. Today, Oando is in its third year of consecutive profits.

    In the period under review, Oando recorded other wins. The company’s upstream business along with its Joint Venture (JV) Partner, Energia Limited was recognized in June for its commitment to community development in Delta State. Some of its community development initiatives in the communities include, a network of asphalted roads of more than 10.13km with drains within Ebendo, Obodougwa, Umusam, Isumpe, Ogbe- Ani and Umusadege communities. State of the art water boreholes installed at various locations for Obodougwa and Umusam communities, aimed at providing access to potable water and reducing the risk of contracting water-borne diseases, the installation of transformers and streetlights at Umusam, Isumpe, Ogbeani, Umusadege communities, the construction and renovation of classrooms in Primary and Secondary schools in Delta State and the provision of Scholarships to Novena University Staff School, for 32 students from Emu-Ebendo, Obodougwa-Ogume, Isumpe, Ogbeani, Umusadege, Umusam and Obodeti communities.

    In May, Oando’s GCE paid a visit to Internally Displaced Person (IDP) Camps in North-East Nigeria, under the umbrella of the United Nations (UN) Nigerian Humanitarian Fund- Private Sector Initiative (NHF-PSI). The NHF-PSI is made up of fourteen leading private sector companies in different sectors of the economy. Setting the pace for the oil and gas industry, is the indigenous leader, of Oando PLC, whose GCE serves as the Secretary of the Steering Group of NHF-PSI. To assess the situation firsthand, Wale Tinubu led a delegation that included Herbert Wigwe, Managing Director of Access Bank and Kyari Bukar to a first ever collective tour of two IDP camps in Maiduguri, Borno. The objectives of the tour was also to raise awareness of the plight of the millions of people in the North-east, and more directly galvanize a new wave of donor support for the initiative from businesses and individuals across the country.

    On the tour, the GCE said: “This initiative is about Nigerians helping each other. Today, I have witnessed some of the most vulnerable people; women and children in the most dire circumstances. Having seen the magnitude of their humanitarian needs it is obvious that it is not a task that the Government or any one agency can take on alone. Now more than ever there is a global realisation that collaboration, convening and cooperation are the only path to creating the society we desire. The realisation that no one person, group or authority has all the answers, but we achieve so much more when we explore ways of combining forces, innovating and  working together. We as private sector leaders, have a collective responsibility to lend our diverse resources to alleviate the suffering of our fellow Nigerians. The onus is on us to use our position to repair, nurture, build and sustain our society and pave a path for a truly inclusive economy.”

    Most recently, the Lagos Midstream Jetty (LMJ), a brain child of Oando and a first class piece of engineering that meets global standard, now operated by OVH Energy, celebrated its 100th berth. LMJ was the highest receiving Lagos Jetty in June 2019.

    The future outlook seems promising for Oando PLC. Oil prices have stayed above $65 per barrel for most of 2019, and the company expects prices to remain at their current levels in the near term. According to its press statement, the company will focus largely on driving profitability via growth in its upstream business through increase in production initiatives via strategic alliances, whilst ensuring operational efficiency and fiscal prudence. The company will continue to work with its partners to achieve cost optimization on its JV operations, ensuring the gains from higher revenues are not lost to increasing operating costs.

    On the future outlook for the company, Wale Tinubu said: “Looking ahead, our focus will be on achieving further growth and profitability by delivering on our production growth initiatives through strategic alliances and partnerships.”

    Oando continues to be audacious and unrelenting in its drive to create value not for itself and its shareholders but for the country at large. Following incessant wins, the company is on its way to ending 2019 on a positively high note for its stakeholders alike.

  • Oando seeks to join Tinubu’s suit against SEC

    Oando Plc on Monday urged the Federal High Court in Lagos to join it in a suit filed by its Group Chief Executive Officer Wale Tinubu and his deputy Mr. Omamofe Boyo against the Securities and Exchange Commission (SEC).

    Tinubu and Boyo are challenging SEC’s decision to remove them from office, impose a fine on Tinubu and bar them from being directors of public companies for five years.

    Oando’s lawyer Yele Delano (SAN) told Justice Ayokunle Faji that his client intended to be joined in the suit.

    He sought an adjournment to enable him file the necessary processes.

    Besides, he also said he would be praying the court to consolidate similar cases on the SEC decision.

    Tinubu and Boyo’s lawyer Tayo Oyetibo (SAN) also urged the court to join Oando in the suit.

    He said his clients would be affected should the court refuse to grant Oando’s application in the event it goes an appeal.

    Oyetibo urged the court to take a favourable look at the application for joinder, so that progress can be made in the suit.

    But, SEC’s lawyer Chief Anthony Idigbe (SAN) said the case was set for hearing, and that he was ready to go on.

    The court had on June 3 restrained the SEC from acting on its decision against the plaintiffs.

    Ruling on an ex-parte application filed by Tinubu and Boyo, Justice Mojisola Olatoregun ordered parties to maintain status quo.

    SEC had on May 31 announced the conclusion of an investigation of Oando and ordered Tinubu and other affected board members to resign.

    Read Also: Oando, SEC urged to settle out-of-court

    On June 2, it announced it had set up an interim management team headed by Mr. Mutiu Sunmonu to oversee the company’s affairs and to conduct an Extraordinary General Meeting on or before July 1 to appoint new directors to the board, who would subsequently select a management team

    Tinubu and Boyo filed the suit numbered FHC/L/CS/910/19 to challenge the SEC decision.

    They sought “an order of interim injunction restraining the second respondent (Sunmonu) from acting as the head of the interim management of Oando Plc pending the hearing and determination of the motion for interlocutory injunction.”

    After hearing the applicants counsel, Justice Olatoregun ruled: “That an interim order of injunction is granted within the prayers sought; parties are to maintain the status quo ante pending the determination of the motion on notice.”

    Based on another application, the court granted leave to Tinubu and Boyo to file a motion for a judicial review of SEC’s decision.

    Justice Ayokunle Faji granted “an order of certiorari bringing up to the Federal High Court for the purpose of being quashed, the decision of the first respondent (SEC) contained in its letter dated 31st May 2019”.

    Delano prayed the both suits be consolidated and Justice Faji adjourned until July 4 for arguments.

    He fixed July 22 for hearing of the substantive suit.

  • Oando, SEC urged to settle out-of-court

    Stakeholders in the capital market have urged Oando Plc and the Securities and Exchange Commission (SEC) to opt for an out-of-court settlement of their dispute in the overall interest of the Nigerian capital market and the investing public.

    The case between Oando Plc and the Securities and Exchange Commission (SEC) reopens Monday at the Federal High Court, Lagos,

    Some capital market operators, who spoke on Sunday, said the crisis had already done considerable damage and urged all parties to avoid aprotracted litigation and bickering that could further erode public confidence in the market and shareholders’ investments in Oando.

    They noted that while SEC has unassailable power to regulate activities at the capital market as Nigeria’s apex regulator, the developmental mandate of the Commission implies that it must seek a middle way to ensure sanity without undermining the confidence of quoted companies, which form major part of stakeholders in the market.

    A stockbroker and financial analyst, Mr. Andrew Tsaku, said the situation at the market now requires all parties to work together harmoniously to win investors’ confidence and protect corporate sustainability.

    He said capital market operators expected the parties to look beyond legalities and regulatory powers to the overall development of the market pointing out the fact that the market is sensitive to crisis and such could have unintended consequences.

    According to him, investors look at the overall conduciveness of the investment market including the rules and regulations and the fairness of the enforcement processes.

    He noted that while Oando has had its challenges, especially in the area of its leveraged business development strategy, the indigenous oil and gas group has strived over the years to create value for investors and represent Nigeria in the international capital market with its dual listing.

    He said: “When we are looking at increasing participation in the capital market, whether you are talking of local participation or indeed foreign capital inflows, one of the things investors normally will look at is conducive atmosphere, not just for doing business, but the sanctity with which regulation is enforced.

    Read Also: Oando: SEC followed due process – Stakeholders

    “Both parties must now take another look at the issues. There are issues being contested but the reality about legality is that you can win in the law court, for example, but you might not necessarily win on moral grounds, because no matter who wins in this matter you will still need to warm your hearts to the realm of the investor, who is actually the real loser in the scheme of things and we must do everything to protect that interest going forward.”

    Tsaku pointed out that the recourse to dialogue in the recent regulator-operator crisis between Nigerian Broadcasting Commission (NBC) and Daar Communications, another quoted company, underscored the importance of dialogue over litigation.

    “AIT (Daar Communications) went to court, there was dialogue, persuasion and the NBC came to the table and found some middle cause action which has led both parties into talking and resolving the issues,” Tsaku said.

    He charged quoted companies to improve on self-regulation by adopting global best practices in their operations while urging SEC to develop a proactive regulatory regime that enables the Commission to forestall corporate governance abuses and ensure compliance with rules and regulations.

    Other stakeholders also urged the parties to consider the interest of the minority retail investors, who have seen significant depreciation since the corporate crisis started.

    A group of stakeholders under the auspices of Consolidated Capital Market Stakeholders Forum (CCMSF), affirmed that SEC has a duty to protect the capital market.

    In a statement signed by Umar Usman, CCMSF noted that SEC is the statutory regulatory body for the capital market in Nigeria and a body charged with the responsibility of safeguarding the interest of the shareholders, investors, creditors and the public in order to maintain the stability of the capital market and by extension the economy of the country as a whole.

    According to the group, as the apex regulator of the Nigerian capital market, the Commission has a mandate to protect investors and its actions should be viewed within the perspective of protection of investors and preservation of stakeholder value.

    The group noted that strong regulatory environment and corporate governance enforcement are in line with the Federal Government’s agenda to build strong institutions and promote the transparency and integrity of the Nigerian capital market, given that these are preconditions for attracting foreign investors.

    The Institute of Directors (IoD) Nigeria, which has mandated its Director Development Committee and the Ethics Committee to review the crisis between SEC and Oando, stated that the crisis should be a learning point for both the regulator and quoted companies.

    ”As the professional body for Directors in Nigeria, IoD Nigeria, has taken a very keen interest in the developments and is monitoring the outcomes of all the actions initiated by all the parties concerned. There is no doubt that these developments have created huge lessons for all corporate Directors as well as SEC regardless of whatever their eventual outcome may be,” IoD Nigeria noted in a statement signed by its Director-General, Mr. Bamidele Alimi.

    Many shareholders’ groups, including Independent Shareholders Association of Nigeria (ISAN) and Pragmatic Shareholders Association of Nigeria (PSAN), have also thrown their weights behind amicable resolution of the SEC-Oando crisis.

    Shareholders called on SEC to take a second look at its investigative, adjudicatory and enforcement processes in order to ensure the Commission follows due process in its actions and maintains reasonable balance of its functions.

     

  • Breaking: SEC sets up interim management for Oando Plc

    The Securities and Exchange Commission, SEC, has constituted an Interim Management Team to oversee the affairs of Oando Plc, and conduct an Extra Ordinary General Meeting on or before July 1, 2019 to appoint new Directors to the Board of the Company, who would subsequently select a Management Team for Oando Plc.

    This was made known through a statement by the Head of Corporate Communications of the SEC, Mrs. Efe Ebelo, in Abuja.

    The interim management will be headed by Mr. Mutiu Olaniyi Adio Sunmonu, CON, who till date is an Independent Non-Executive Director of Unilever Nigeria Plc, and the Chairman of Julius Berger Nigeria Plc.

    Read also: Why wasn’t Oando given a fair hearing?

    It would be recalled that the SEC after concluding investigation of Oando Plc, directed among others the resignation of the affected board members, and also barred the Group Chief Executive Officer and the Deputy Group Chief Executive Officer of Oando Plc from being directors of public companies for a period of five (5) years.

    The SEC also directed the payment of monetary penalties by the company and affected individuals and directors, and refund of improperly disbursed remuneration by the affected board members to the company.

     

  • Oando sells stake in gas firm for $41.5m to cut debt

    Oil firm, Oando Plc, yesterday said it had sold its 25 per cent stake in local gas and power company Axxela to majority investor Helios Investment partners for $41.5 million as it works on cutting its debt.

    Oando has in recent years transformed itself from a fuel retailer to an oil producer competing with multinationals such as Shell and Exxon Mobil, but its growth has been largely funded by debt.

    It hived off its power and gas subsidiaries in 2015, selling a 75 per cent stake in the new business, Axxela, to Helios for $115.8 million in 2016.

    The Soros-backed private equity firm now owns 100 per cent of Axxela following Oando’s divestment, Axxela said yesterday.

    Axxela said it delivers up to around 80 million standard cubic feet (scuf) per day to over 160 industrial and commercial customers.

    REad also: Oando finalises N14b Axxela divestment

    “This transaction favourably positions us to significantly reduce our debt profile and remain focused on growth through our dollar denominated businesses,” Oando said in a statement.

    Two days ago, Oando’s Chief Executive – Adewale Tinubu – said the oil company aimed to raise fresh capital over the next two years and cut its long-term debt after it bought Conoco Phillips’ Nigerian assets for $1.5 billion in 2013.

    He told Reuters he was confident with the capital raising initiatives and that over the next 24 months Oando would raise funds as plans were far advanced.

    Oando said yesterday that it would use the proceeds of the Axxela stake sale to repay part of the group’s term loan.

    Shares in Lagos-listed Oando, which are down 86 per cent from their peak of N33.47 in 2014, rose 3.1 per cent yesterday.

  • Oando to raise fresh capital, cut debt

    The Chief Executive Officer, Oando Plc, Adewale Tinubu  yesterday said the oil firm is planning to raise fresh capital over the next two years and repay debt incured during the acquisition of Conoco Phillips Nigeria assets.

    Oando has transformed itself in the past few years from a fuel retailer to oil producer and now competes with multinationals such as Shell and ExxonMobil, but its growth has been largely built on debt.

    It bought Conoco Phillips’ Nigeria assets for $1.5 billion in 2013, but high financing costs coupled with lower oil prices hit profit, leaving it unable to repay its debt. It has posted losses including a record $1.10 billion loss in 2014.

    According to Tinubu, Oando has paid over 77 per cent of the acquisition debt and plans to pay-off the rest in 12 months, which would allow it to resume dividend payments. The firm would then be left with a total debt of $300 million.

    He said Oando would continue to pursue acquisitions as multinational oil companies sell assets, adding that the firm would take on new deals after paying the debt.

    ExxonMobil is weighing the sale of its Nigerian oil and gas fields for up to $3 billion to focus on new developments in U.S. shale and Guyana, industry and banking sources said.

    “Our expectation is that over a four-year horizon we will no longer have long term debt,” Tinubu told Reuters by mail.

    The Central Bank of Nigeria (CBN) in 2016 gave lenders a deadline to reach a deal to resolve Oando’s debt issue, leading to a N94.6 billion loan restructuring including asset sales.

    Last week, Oando’s losses narrowed to N18.3 billion  ($59.8 million) for 2018 while its auditor Ernst & Young questioned its “going concern” status, saying its current liabilities were in excess of its current assets.

    Oando said it would reclassify some current liabilities as long-term liabilities to remedy its working capital by June and swap N27.5 billion of debt into equity, it said in a note to its 2018 accounts.

    It also said in its accounts that it plans to sell up to $200 million via a rights issue by October and cut its stake in its upstream unit to raise $275 million in 2020.

    Tinubu said he was confident with the capital raising initiatives and that over the next 24 months, Oando would raise funds as plans were far advanced.

    Shares in Lagos-listed Oando, which are down 86 percent from their peak of N33.47 in 2014, rose 3.2 per cent yesterday to value the company at N58.43 billion.