Oando Plc, the integrated energy solutions provider with investments in gas, international supply and trading, upstream exploration and production and energy services has secured a USD$100 Million Syndicated Credit Facility arranged by African Export & Import Bank and Standard Chartered Bank, UK.
This credit facility, with a 3-year duration and syndicated to a combination of local and international banks will enable Oando restructure its local short-term naira borrowings, especially as the international borrowing rates are more favourable.
With this facility, Oando Plc is taking advantage of the lower international lending rates as well as the growing rate of appreciation of the Naira against the US Dollar.
Speaking about the facility, Mr. Wale Tinubu, Group Chief Executive, Oando Plc states, “This facility will boost our growth aspirations, especially as we seek to consolidate our leading position in Nigeria downstream energy sector, whilst we continue in our march to the higher-value mid to upstream sectors of the oil and gas industry.
Commenting further, Mr. Tinubu said, “Oando’s plan within the next few years is to focus on the realignment of our working capital management and efficient utilization of our interest bearing liabilities, thus occasioning a substantial reduction in our working capital finance and thereby increasing profitability.”
In its Third Quarter Results, Oando Plc showed an increase in Profit before Tax of 46% from N3.01 billion in 2006 t o N4.14 billion in 2007. Profit after Tax also witnessed a significant increase of 53% from N2.32 to N3.4 billion, while Turnover increased by 12% from N155.73 billion in 2006 to N174.28 billion in 2007.
