Shareholders of Oando PLC, Nigeria’s leading integrated energy group, yesterday unanimously endorsed the Company’s proposed N200 billion additional capital raising. The resolution, passed at the company’s annual general meeting (AGM) on 30th July, 2009, is the first step in strengthening Oando’s capital base to support continued business growth.
The additional funding will be utilised to strengthen the company’s expansion plans, especially in the mid and upstream oil & gas sector – commission new oil explorations, increase rig fleet and extend gas pipeline network, thereby consolidating its leadership position as sub-Saharan Africa’s foremost integrated energy solutions provider.
Mr. Femi Adeyemo, Executive Director/ Chief Financial Officer, Oando PLC said, “We expect positive investor response from local and international stock markets to any option we choose to adopt in the execution of this mandate, as investors are well aware of Oando’s strong fundamentals. We are encouraged by the feedback from our recent local and international roadshows to institutional investors.”
Mr. Wale Tinubu, Group Chief Executive, Oando PLC comments, “We thank our shareholders for demonstrating overwhelming support and confidence in the Group with this endorsement. We will now proceed to get necessary approvals from relevant regulatory authorities in Nigeria and South Africa with a view to commencing the fund raising this quarter. In due course we will announce the structure and methodology; but it will be a good mix of various financial instruments to be issued on multiple exchanges to maximize our multifaceted appeal.”
“The robustness of our diversified business model, with multiple income streams across the entire energy value chain, will enable us maintain steady profitability and assure investors of guaranteed returns in the short, medium and long term.” He added.
The company’s diversification into natural gas distribution for local industries, the acquisition of five oil rigs for drilling campaigns in the Niger Delta, and the emergence of Oando as Nigeria’s first indigenous company with producing deepwater assets, has positioned the company for continued growth.
Oando has consistently delivered 50% year-on-year increase in profitability over the last five years. The additional funds will reinforce its financial structure, bolstering its sector leadership and strengthening subsidiaries’ capital base to take advantage of growth opportunities.
The company recently announced robust 2008 year end results. The group’s profit after tax increased by 52% from N5.48 billion in 2007 to N8.34 billion in 2008, while turnover grew by 83% to N339 billion from N186 billion in 2007. Gross profit also exhibited similar returns with an 85% increase to N40 billion.
