The Nation Newspaper

Tag: Oando

  • Oando’s N7.1b Q3 profit excites shareholders

    Oando’s N7.1b Q3 profit excites shareholders

    Leading integrated indigenous oil and gas company Oando Plc has posted a profit after tax of N7.1 billion in the third quarter of 2017, boosting shareholders’ confidence in the stock.

    A comparative review of Oando’s financials shows positive performance across all indices. Turnover increased by 16 per cent to N383.5 billion from N329.9 billion in the same quarter of 2016 and gross profit increased by 148 per cent to N71.2 billion from N28.6 billion. Profit-after-tax increased by 120 per cent to N7.1 billion from a loss of N35.8 billion in Q3 2016.

    Commenting on the results, Group Chief Executive Wale Tinubu, said: “After five consecutive quarters of contraction, Nigeria’s official exit from the recession, buoyed by improved performance in the oil, agriculture, manufacturing and trade sectors of the economy, is laudable news. The continued increase in oil prices to a 2017 high of $58 in September, coupled with ongoing peace efforts in the Niger Delta have significantly impacted our fourth successive profit declaration.”

    The management said it continues to keep to the promise it made to shareholders during its 39th annual general meeting in 2016 with the declaration of its fourth consecutive profit. The company was proactive in its approach to cushion the effect of the oil downturn by immediately implementing its strategic growth initiatives.

    Tinubu added: “Our third quarter financials are reflective of the continued implementation of our strategic initiatives of growth through our dollar earning upstream portfolio; deleverage through recapitalisation and asset divestments and the expansion of our oil export trading business. The proceeds from our business restructuring and asset sales have been successfully used to improve our balance sheet with a reduction of N18 billion in our debt position from N247 billion as at December 2016 to N229 billion today.”

    Oando’s results defy the speculation of many who watched the company and its management come under scrutiny in the past months. It also comes as a relief to aggrieved shareholders who have in the past months expressed their dissatisfaction on the damage the Security Exchange Commission probe caused to brand value and the Company’s share price, the management said.

    However, these results prove the company can look forward to an optimistic future. In 2015 Oando concluded the recapitalization of its downstream business with a consortium of Helios Investment and Vitol Group for US$210 million. The partnership reinvigorated Nigeria’s downstream sector to create one of Africa’s largest downstream operations. Oando further divested its midstream business now known as Axxela to Helios partners for US$115.8 million to increase its gas footprint, the management added.

    “Our tenacity to continuously create value despite prevailing headwinds is evident in our improved performance four quarters in a row; we remain optimistic about our future performance and focused on delivering robust returns to shareholders,” Tinubu said.

  • ‘Oando shareholders to bear cost of forensic audit’

    ‘Oando shareholders to bear cost of forensic audit’

    Shareholders of Oando Plc will bear the cost of the N160 million forensic audit the Securities & Exchange Commission (SEC) will carry out on the firm.

    An official of Oando said over the last six months, the company has watched the Securities & Exchange Commission (SEC) investigation into Oando Plc play out in the media contrary to best practice and consequently, the investment of over 270,000 Nigerians depreciate drastically.

    “The Commission saddled with the responsibility of protecting investors and maintaining orderly and efficient markets, has been called-out on doing the contrary with regards to this investigation.

    The SEC finally publicized the acclaimed findings of its six months long investigation into Oando in the past week, with steep penalties which the company has rebutted in a press statement. Amongst other things, the company has been slammed with a 160 million naira bill to enable the SEC conduct a forensic audit on its financials. This penalty begs the question, is thisthe most effective use of shareholders money? How independent and objective is the process?

    According to Oando, the cost implication of the forensic audit which is to be borne by the Company is onerous, unnecessary and irresponsible in light of the above submissions and not the best use of shareholder funds at this time.

    SEC has already selected a five company panel of forensic auditors. However, Oando is fighting back this decision. Oando has confirmed that they weren’t carried along on the panel selection, they have not received a scope of work and timeline for the audit and accordingly a justification for the N160 million bill.

    Oando’s most recent statement states: “Having declared to the public that it has acted drastically to suspend the shares of Oando PLC due to its “weighty” findings in the course of its investigations, SEC then concludes that a forensic audit is necessary in order to investigate whether its findings are true. This is a clear contradiction.’

    Oando questions how the SEC has arrived at its findings if it cannot be sure of the veracity or otherwise of those findings and how did it ascribe the appropriate level of weight to be given to those findings, enough to warrant an immediate suspension followed by a technical suspension of the shares of the Company, if those findings are still mere allegations at this point.

  • Investors strike 14 deals as Oando remains on technical suspension

    Investors strike 14 deals as Oando remains on technical suspension

    •SEC, NSE still studying court order 

    Investors struck 14 deals for 142,250 shares of Oando yesterday at the Nigerian Stock Exchange (NSE) but the indigenous energy group’s share price remained unchanged at N5.99 per share, despite a court order that restrains the NSE from putting the company under technical suspension.

    A full suspension is the halt of trading activities in a listed security for a period. A technical suspension is the interruption of price movement in a listed security for a period so that any dealings in the securities which occur during the period of the suspension will not result in any change in price, which change may have occurred had the suspension not been implemented.

    The NSE had on Monday October 23, 2017 placed the shares of Oando on technical suspension, “thus, the shares will be available for trading but there will be no price movement while the technical suspension subsists”.

    Securities and Exchange Commission (SEC) had last week ordered the placement of full suspension on the shares of Oando as the apex capital market regulator launched a forensic investigation into allegations leveled against the management of Oando by two aggrieved shareholders. The Commission also indicated that the full suspension should be relaxed to technical suspension after 48 hours.

    Oando obtained an interim court order on Monday October 23, 2017, restraining the NSE and any other party working on their behalf from giving effect to the directive of the SEC to implement a technical suspension of the shares of the company pending the hearing and determination of the motion for injunction and also an order restraining the SEC and any other parties claiming through or working on behalf of the Commission from conducting any forensic audit into the affairs of the company pending the hearing and determination of the motion for injunction.

    However, both the NSE and SEC were served with the enrolled court order on Tuesday, October 24, 2017 after the technical suspension was carried out by the NSE on Monday, October 23, 2017.

    A regulatory source said there was no immediate compliance with the ex-parte order because the regulators were seeking legal interpretation and implication of the court order.

    According to the source, the court order rather than seeking to vacate and lift the suspension on the company’s shares sought to restrain a directive that was already in process since last week and completed on Monday with the relax of the full suspension to technical suspension.

    In a statement signed by Chief Compliance Officer and Company Secretary, Oando Plc, Ayotola Jagun, Oando stated that it was of the view that the SEC’s directives were illegal, invalid and calculated to prejudice the business of the company.

    Two petitioners -Alhaji Dahiru Mangal and Ansbury Inc had filed petitions against Oando with SEC, alleging gross abuse of corporate governance and financial mismanagement. SEC had ordered placement of Oando’s shares under trading suspension at the NSE while directing a forensic audit of Oando.

    Oando stated that it found it necessary to take legal action because of contradictions in the directives by SEC and the need to protect the interest of its shareholders.

    Oando noted that it had fully co-operated with the SEC since the commencement of this investigation in May 2017 and provided all information requested but it was evident that submissions made to the SEC were not duly considered due to the conclusions reached and actions taken, as all of the matters raised have been responded to in great detail with all supporting documents requested by the SEC.

  • Oando gets court order to stop forensic audit, share suspension

    Oando gets court order to stop forensic audit, share suspension

    Oando Plc has secured an ex-parte order from the Federal High Court restraining the Securities and Exchange Commission (SEC) from going ahead with the forensic audit of the energy group’s operations. Oando also secured interim injunction restraining the Nigerian Stock Exchange (NSE) from pacing the shares of the company under technical suspension as directed by SEC.

    The enrolled court order was served on both SEC and NSE yesterday. However, the NSE has since placed Oando’s shares under technical suspension since Monday, October 23, 2017.

    The court order restrains NSE and any other party working on its behalf from giving effect to the directive of the SEC to implement a technical suspension of the shares of the company pending the hearing and determination of the motion for injunction.

    It also restrains SEC and any other parties claiming through or working on behalf of the Commission from conducting any forensic audit into the affairs of the company pending the hearing and determination of the motion for injunction.

    In a statement signed by Chief Compliance Officer and Company Secretary, Oando Plc, Ayotola Jagun, Oando stated that it was of the view that the SEC’s directives were illegal, invalid and calculated to prejudice the business of the company.

    Two petitioners -Alhaji Dahiru Mangal and Ansbury Inc had filed petitions against Oando with SEC, alleging gross abuse of corporate governance and financial mismanagement. SEC had ordered placement of Oando’s shares under trading suspension at the NSE while directing a forensic audit of Oando.

    Oando yesterday stated that it found it necessary to take legal action because of contradictions in the directives by SEC and the need to protect the interest of its shareholders.

    “Having declared to the public that it has acted drastically to suspend the shares of Oando Plc due to its “weighty” findings in the course of its investigations, SEC then concludes that a forensic audit is necessary in order to investigate whether its findings are true. This is a clear contradiction. How did the SEC arrive at its findings if it cannot be sure of the veracity or otherwise of those findings and how did it ascribe the appropriate level of weight to be given to those findings, enough to warrant an immediate suspension followed by a technical suspension of the shares of the company, if those findings are still mere allegations at this point,” Oando stated.

    Oando noted that it had fully co-operated with the SEC since the commencement of this investigation in May 2017 and provided all information requested but it was evident that submissions made to the SEC were not duly considered due to the conclusions reached and actions taken, as all of the matters raised have been responded to in great detail with all supporting documents requested by the SEC.

    According to Oando, the Company repeatedly, through its Chairman, requested an audience with the SEC to enable it present its case before the Commission but to date, no invitation has been extended to the company.

    “Each of the alleged infractions has a penalty as prescribed by the respective provisions of the ISA, SEC Code, SEC Rules and Regulations, NSE Listing Rules and CAMA; none of them whether singularly or together warrants the suspension of free trading in the securities of the company or the institution of a forensic audit,” Oando stated

    The company pointed out that the latest actions taken by SEC are prejudicial to the business of the company as it would hinder the ability of the company to enter into new business transactions and affect the confidence that existing stakeholders have in transacting business with the company.

    The company stated that it has received numerous queries from critical stakeholders, including its lenders as a result of the SEC’s actions and an indefinite technical suspension of its shares as well as an open-ended forensic audit will negatively impact the ability of the company to conduct its day-to-day business and meet the expectations of all its stakeholders.

    According to the company, by two letters dated August 24th and August 28th, the chairman of Oando petitioned the Director General of SEC alleging bias and lack of due process in the way and manner in which the SEC has conducted this investigation.

    Oando alleged that the current action by the SEC, despite its internal findings, confirms that the SEC appears to be working to its own conclusion rather than looking at the facts before it and acting in the best interest of the company and the minority shareholders whom it claims it seeks to protect.

    Oando added that the cost implication of the forensic audit N160 million, which is to be borne by the company is onerous, unnecessary and irresponsible in light of the above submissions and not the best use of shareholder funds at this time.

    “It is our position that the SEC has not presented a strong case to support either the directive to suspend free trading in the shares of the company or the engagement of a forensic auditor to conduct an audit into the affairs of the company. The company reserves the exercise of its full legal rights in the protection of the company’s business and assets whilst remaining committed to act in the best interests of all its shareholders,” Oando stated.

  • Rivers, Oando expand gas pipeline

    Rivers, Oando expand gas pipeline

    The Rivers State Government and Nigeria’s indigenous energy company, Oando PLC, are closing in on the completion of an 8.5 km expansion of the natural gas distribution network in the Port Harcourt Franchise Area from the Above-Ground Installation (AGI) in Trans-Amadi to BUA Sugar Refineries (BUA).

    The project is being executed by the Central Horizon Gas Company (CHGC), a Special Purpose Vehicle set up by Oando and the Rivers State Government, focused on the rehabilitation, operation, and expansion of the existing natural gas distribution network in Greater Port Harcourt City and the Trans-Amadi area.

    The pipeline’ll boost BUA’s productivity, provide substantial cost-savings and open the state for a new wave of industrialisation via natural gas utilisation.

    Oando’s gas integration strategy, includes methods of transmission and distribution to fulfill market requirements, while the gestation period for the implementation of the Nigerian Gas Master Plan elapses.

    The company has developed over 260km of gas pipelines across the country, and is also a vested player in the virtual pipeline market through a Compressed Natural Gas facility in Lagos and an ongoing Mini LNG development in Ajaokuta.

    The pioneering 20 mmscf/day liquefaction plant in Ajaokuta, is primarily directed towards fulfilling the gas supply requirement for captive power plants, embedded generation, and industrial clusters in the Northern region, as well as stranded customers in the South. Off-takers, particularly, power plants and industrial customers who currently utilise liquid fuels such as diesel and LPFO, will be able to lower energy costs by up to 40%, while significantly decreasing carbon emissions.

    The company is also spearheading several long term projects including a 400km South-West to North-West gas pipeline and a Central Processing Facility (CPF) which will serve as the primary gas gathering and processing hub in the Niger Delta.

    In its determination to build Africa’s largest sub-Saharan natural gas pipeline grid, Oando is creating access to thousands of industries in the nation’s quest to leverage gas to drive industrialisation on a large scale. The company provides gas and power solutions to over 170 industrial and commercial customers nationwide ensuring cost-savings across board, powering economic development, and engendering environmental awareness.

    Though Nigeria boasts proven natural gas reserves of 187 trillion cubic feet (TCF), the 8th largest in the world and the largest in Africa, the gas industry has stalled in realizing its true potential due to a number of challenges including the lack of a suitable long-term fiscal and regulatory framework, insufficient infrastructure, sabotage in the Niger Delta, and slow market consolidation. Analysts have continually touted gas as a means of diversifying Nigerian revenues from the usual reliance on oil.

    The CHGC expansion which will boost BUA’s productivity is scheduled for completion by the end of Q4 2017.

     

     

  • Oando: patnership key to growth

    Oando: patnership key to growth

    •Supports US-Nigeria commercial relations

    The Group Chief Executive, Oando Plc, Wale Tinubu, has stressed the importance of collaboration and strategic  partnership for sustainable  economic growth.

    Tinubu spoke during  an exclusive dinner in New York hosted by the U.S. Nigeria Council (USNC) for Food Security, Trade and Investment with U.S investors interested in Nigeria.

    The dinner was held on the sidelines of the 72 Session of the United Nations General Assembly as a platform to dialogue and build U.S-Nigeria commercial relations and deepen a new era of understanding and cooperation between the U.S and Nigeria.

    Speaking on the occasion, Tinubu said: “As we know, global firms and investors are increasingly drawn to Nigeria, Africa’s largest and most dynamic market, but navigating the rapidly changing business ecosystem requires strategic partnerships.

    “Collaboration is essential to not only maximise an organisation’s potential, but also to grow and diversify the Nigerian economy. Meetings like these encourage tangible partnerships across both borders and allow for an upward drive of the economy.”

    Tinubu lauded the Council for facilitating transactions between a very diverse set of stakeholders and expressed  hopes for even stronger and more impactful relationships in the near future.

    The dinner  was a platform for companies in both countries to deliberate on ways to build on Nigeria’s return to growth and deepen diversification. The event was co-hosted by John Coumantaros, Chairman of Flour Mills Nigeria Plc; Uche Orji, Chief Executive Officer of the Nigeria Sovereign Investment Authority, and Ambassador John Negroponte, Vice-Chairman of McLarty Associates.

    Council members and dinner participants focused on an urgent need to further developthe Nigerian economy, especially after a recession.

    The commitment of Nigerian businesses to the USNC was demonstrated by the active participation of Tinubu, Jim Ovia of Zenith Bank, Tunde Folawiyo of Yinka Folawiyo Group, Abdulrazaq Isa of Waltersmith, Kola Karim of Shoreline Energy, and Oscar Onyema of the Nigeria Stock Exchange (NSE).

    The dinner welcomed a diverse and notable group of entrepreneurs who have built successful companies in a wide range of sectors including oil and gas, technology, agribusiness, e-commerce, and education.

    U.S. businesses in attendance include Google, IBM, Tetra Tech, and American Tower.

    Among the leading investors at the event were Citi, Denham Capital, Fairfax Africa, CRE Ventures, Development Partners International, Atlas Mara

  • SEC clears Oando, AGM holds as scheduled

    SEC clears Oando, AGM holds as scheduled

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has given Oando Plc the green light to conduct its annual general meeting (AGM) as scheduled after interim report by the special task team of the Commission found no substantial evidence in allegations filed against the oil and gas group.

    Oando plans to hold its annual general meeting on Monday September 11, 2017 in Uyo, Akwa Ibom State.

    SEC had constituted a special task team to review petitions filed against Oando by Alhaji Dahiru Bara’u Mangal and Ansbury Inc, alleging gross abuse of corporate governance and financial mismanagement. In its interim report, the special task team stated that it has found no material evidence indicting the company of such allegations.

    On the basis of the interim report, SEC, in a letter to the Group Chief Executive of Oando, dated August 31, 2017, gave Oando the nod to hold its AGM as scheduled. SEC in its report noted that it was unable to identify any material findings that would warrant the postponement of the company’s 40th AGM.

    The interim report and the confirmation of the company’s AGM came amidst reports that Ansbury and Mangal, who had claimed substantial shareholdings in Oando, had pressed their cases and were pushing for the resignation of the group chief executive of Oando, Mr. Wale Tinubu.

    The SEC’s preliminary report appeared to align with the position of Oando, which has consistently affirmed that the allegations lack merit.

    Oando had insisted that the petitions have no merit as the issues raised have received board, shareholder and where required SEC approval.

    The company had specifically noted that Ansbury Inc, a petitioner, is not a shareholder of Oando but a shareholder in a company domiciled in a jurisdiction outside Nigeria which in turn holds shares in a Nigerian investment company that is a shareholder in Oando.

    Oando also noted that Mangal, an individual shareholder, placed the cart before the horse by requesting for clarification from the SEC on issues which he could easily have obtained from the company. This is against the SEC’s complaint resolution framework for the capital market, which requires complainants to raise complaints and seek for clarifications, in the first instance, with the issuer or operator.

    Mangal had indicated in his petition that he holds a 17.9 per cent equity stake in Oando. However, based on the company’s register of members maintained by First Registrars & Investor Services Limited, Mangal owns approximately four per cent of Oando’s shares in his personal capacity. Oando pointed out that Maangal has not disclosed any beneficial ownership of 13.9 per cent in accordance with Section 95 of the Companies and Allied Matters Act (CAMA). Failure to declare substantial beneficial ownership is a violation of CAMA, as pointed out by Oando in writing to Mangal and SEC since Wednesday, May 24, 2017.

    “From the SEC’s initial correspondence to the company to date, we have availed them with all documents requested, provided clarification on, and rebuttals to, the issues raised and await a speedy conclusion to the enquiry. The company will continue to fully co-operate with the SEC in the discharge of its duties as the capital markets regulator. As a public company listed on both the Nigerian and Johannesburg Stock Exchanges we will provide full disclosure of the outcome as soon as the SEC enquiry is completed,” Oando had stated in earlier rebuttal.

  • Oando posts N4.6b profit despite low oil prices

    Oando posts N4.6b profit despite low oil prices

    OIL giant Oando Plc has declared a N4.6 billion profit in its half year ended June 30, 2017.

    An analysis of the half-year  results of oil and gas companies operating in the country revealed an increase in earnings.

    Royal Dutch Shell’s cash flow rose to the highest since the oil price crash began. It generated $3.6 billion.

    Tullow Oil’s revenue increased by 46 per cent to $0.8 billion . A comparative review of Oando’s financials showed positive performance. Its turnover increased by 26 per cent to N267.1 billion from N212.3 billion; its gross profit rose by 76 per cent to N33.4 billion from N19 billion; and its net finance costs more than halved to N16.4 billion from N35.3 billion.

    The firm’s profit-after-tax  (PAT) increased by 117 per cent to N4.6 billion from a loss of N26.9 billion in the same period last year. For the third time in a row, Oando posted positive financials, defying speculations and bolstering confidence in the Oil and Gas sector.

    In its final year-end 2016 results, the oil firm declared N3.5 billion PAT; in the first quarter of 2017, it posted N1.7 billion PAT and more recently, N4.6 billion PAT in its half year ended June 30, 2017 results. Amidst the sectorial challenges the company continues to wax strong. These numbers are indicative of the company’s ability to manoeuvre the cyclical nature of the sector by adapting quickly to continued low oil prices. Oando has done this through the successful implementation of its corporate strategic initiatives of growth, deleverage and profitability alongside its renewed focus on its dollar earning businesses.

    Commenting on the company’s financials, its Group Chief Executive, Mr. Wale Tinubu said: “With security concerns in the Niger Delta receding, Nigeria’s economic recovery has been buoyed by a boost in oil output, while the legislative approval of certain segments of the Petroleum Industry Bill (PIB) provides greater long-term policy certainty for the sector. Our returns underline our continued successful foray into the upstream.”

    Oando scored significant operational highlights in the first half of this year.

    Through its upstream business, Oando Energy Resources, successfully realised N3.2 billion in net cash from the crystallisation of the corporate facility hedges (1,590 bbls/day) while in the second quarter of 2017, it successfully completed the sale of its interest in oil mining leases (OMLs) 125 and 134 to Nigerian Agip Exploration Limited (NAE) for a profit of N4.6 billion.

    In its Downstream business, Oando Trading (OTD), the company recorded a 40 per cent growth in traded volumes and a commendable 147 per cent increase in turnover to N217.5 billion compared to N88.1billion for the comparative period of last year. The trading business lifted volumes exceeding 7.5mmbbls of crude and imported 610,000MT of refined petroleum products, a 72 per cent and 20 per cent increase respectively.

    The Structured Trade Finance lines in its downstream business increased by N76.5 billion to N214.1 billion in total, from a total of five international and African banks, further validation that Oando is still a good business investment. This increase in financing allows the company to achieve greater trading capacity and in turn more volumes.

    Speaking on the outlook for the company in the second half of 2017, Tinubu said: “We remain committed to optimising our overall production base, seeking unique profit-driven opportunities to further partner with IOCs, while firming up our balance sheet to provide greater shareholder value.”

     

     

    Analysts say the oil and gas sector is gradually recovering from the upheaval of low oil prices due in part to the exemption of Nigeria from the global oil production cut by the Organisation of the Petroleum Exporting Countries (OPEC) as well as containment of the Niger Delta unrest which has led to a steady rise in oil production. In May 2017, the country’s oil production increased by 273,600 barrels per day (bpd) to 1.484 million barrels per day (bpd), a testament to these changes.

    The approval of the PIGB is set to further improve the sector. The anticipated fall out of the PIGB is a more efficiently regulated oil and gas industry and a conducive business environment for sector players. More recently, three petroleum industry bills passed second reading in the Senate; this is expected to further encourage substantial investment in the petroleum industry.

     

  • Oando gets drone licence from NCAA

    The Nigerian Civil Aviation Authority (NCAA) has issued the first Remotely Piloted Aircraft/Drones (RPAS) Operators Certificate (ROC) to Oando Plc.

    The spokesman of the authority, Sam Adurogboye, broke the news yesterday.

    The RPAS Operators Certificate (ROC), according to Adurogboye  shall remain in force till June  15, 2019 and shall be carried on site during each authorized/approved operations.

    By the development, he  said the  authority  is pioneering the issuance of certificate to civil/private operators in the unmanned aircraft operations category.

    He said Oando  Reservoir and Production Services Limited  received the certificate having satisfied the requirements  and was found competent to secure the safe operation of the aircraft  with type registration number Lockheed Martins SN 248-255.

    The certificate is for flights covers aerial work in environmental observation monitoring and protection.

    To qualify for the issuance of certificate, applicants are expected to undergo five phases.

    These include pre-application, formal application, document evaluation, demonstration & inspection and certification phases.

  • Oando concludes 396.8m shares debt-to-equity deal

    Oando Plc yesterday concluded a debt-to-equity conversion with the listing of about 396.8 million ordinary shares that resulted from the transaction at the Nigerian Stock Exchange (NSE). The transaction was valued at N3.17 billion at the closing value of the integrated energy group.

    The listing of the conversion shares increased Oando’s outstanding paid up shares from 12.034 billion ordinary shares to 12.431 billion ordinary shares. Oando’s market capitalisation however increased slightly from pre-conversion value of N99.082 billion to N99.451 billion after Oando’s share price dropped by 15 kobo or 1.84 per cent from opening value of N8.15 to close yesterday at N8 per share.

    Oando had doubled its turnover in the first quarter of this year as the indigenous energy group continued to reap from its strategic focus on assets optimization and deleverage.

    Key extracts of the three-month report for the period ended March 31, 2017 showed that Oando Group grew its top-line by 116 per cent to N138.27 billion in first quarter 2017 compared with N63.9 billion recorded in comparable period of 2016. Gross profit also increased by 53 per cent from N8.7 billion in first quarter 2016 to N13.4 billion in first quarter 2017. The company recovered from a pre-tax loss of N461 million in first quarter 2016 with a pre-tax profit of N494 million in 2017. The company also reduced its net indebtedness by 29 per cent from N316.6 billion in first quarter 2016 to N225.9 billion in first quarter 2017.

    Group chief executive officer, Oando Plc, Mr. Wale Tinubu, said that Oando’s strategy of growth across its business operations; deleverage through the divestment of non-performing assets; and Profitability, by focusing on dollar denominated export earnings, has continue to steady the group against global and national economic headwinds.