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.
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