Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both Nigerian Exchange Limited and Johannesburg Stock Exchange, wishes to inform our valued shareholders and stakeholders that our net earnings for the year ended 31st December 2019 will be significantly below that of the prior year. This reduction in earnings is due to the following:
i. The adverse impact of the COVID-19 pandemic on the global demand for oil in 2020 resulted in lower forecasted oil prices, thus triggering a re-assessment of the expected future cash flows from our oil and gas assets. Accordingly, we have taken the prudent approach of recognizing a substantial impairment of a portion of the Group’s intangible assets that arose from acquisitions done in prior years.
ii. Following the successful resolution of a disruptive and value destructive long-standing shareholder dispute, we have taken a decision to recognize a significant impairment on a category of the Group’s intangible and financial assets arising from the financing and settlement of the resolution.
Despite the above, we remain fully committed to returning the Group to profitability by pursuing organic and inorganic growth opportunities in the upstream and increasing our trading volumes.
Ends.
