{"id":31043,"date":"2019-04-03T23:00:28","date_gmt":"2019-04-03T22:00:28","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=31043"},"modified":"2019-04-04T03:44:00","modified_gmt":"2019-04-04T02:44:00","slug":"oando-plan-to-deleverage-and-remain-profitable-amidst-global-economic-challenges","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/oando-plan-to-deleverage-and-remain-profitable-amidst-global-economic-challenges\/","title":{"rendered":"Oando Plan To Deleverage And Remain Profitable Amidst Global Economic Challenges"},"content":{"rendered":"

Oando oil Plc aims to raise fresh capital over the next two years and repay debt used to acquire Conoco Phillips\u2019 Nigerian assets, its chief executive Adewale Tinubu told Reuters.<\/p>\n

Oando has transformed itself in the past few years from a fuel retailer to oil producer and now competes with multinationals such as Shell and ExxonMobil, but its growth has been largely built on debt.<\/p>\n

It bought Conoco Phillips\u2019 Nigerian assets for $1.5 billion in 2013, but high financing costs coupled with lower oil prices hit profit, leaving it unable to repay its debt. It has posted losses including a record $1.10 billion loss in 2014.<\/p>\n

Tinubu said Oando has paid over 77 percent of the acquisition debt and plans to pay-off the rest in 12 months, which would allow it to resume dividend payments. He said Oando would be left with total debt of $300 million.<\/p>\n

Oando\u2019s growth plan is to continue to pursue acquisitions as multinational oil companies sell assets, Tinubu said but added that he would take on new deals after paying down debt.<\/p>\n

Exxon Mobil is weighing the sale of its Nigerian oil and gas fields for up to $3 billion to focus on new developments in U.S. shale and Guyana, industry and banking sources said.<\/p>\n

\u201cOur expectation is that over a four-year horizon we will no longer have long term debt,\u201d Tinubu told Reuters by email.<\/p>\n

\u201cGOING CONCERN\u201d<\/b><\/p>

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Advertisement<\/div>\r\n\t\t\t\t\t\t\t<\/a>\r\n \r\n\t\t\t\t\t\t\t<\/div>\n

In 2016, Nigeria\u2019s central bank gave lenders a deadline to reach a deal to resolve Oando\u2019s debt issue, leading to a 94.6 billion naira loan restructuring including asset sales.<\/p>\n

Last week Oando\u2019s losses narrowed to 18.3 billion naira ($59.8 million) for 2018 while its auditor Ernst & Young questioned its \u201cgoing concern\u201d status, saying that its current liabilities were in excess of its current assets.<\/p>\n

Oando said it would reclassify some current liabilities as long-term liabilities to remedy its working capital by June and swap 27.5 billion naira of debt into equity, it said in a note to its 2018 accounts.<\/p>\n

It also plans to sell up to $200 million via a rights issue by October and cut its stake in its upstream unit to raise $275 million in 2020, Oando said in its accounts.<\/p>\n

Tinubu said he was confident with the capital raising initiatives and that over the next 24 months Oando would raise funds as plans were far advanced.<\/p>\n

Shares in Lagos-listed Oando, which are down 86 percent from their peak of 33.47 naira in 2014, rose 3.2 percent on Wednesday to value the company at 58.43 billion naira.Reuters<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Oando oil Plc aims to raise fresh capital over the next two years and repay debt used to acquire Conoco Phillips\u2019 Nigerian assets, its chief executive Adewale Tinubu told Reuters.<\/p>\n","protected":false},"author":6,"featured_media":13135,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[4876,3105],"coauthors":[2391],"class_list":["post-31043","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-adewale-tinubu","tag-oando-oil"],"yoast_head":"\nOando Plan To Deleverage And Remain Profitable Amidst Global Economic Challenges - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/oando-plan-to-deleverage-and-remain-profitable-amidst-global-economic-challenges\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Oando Plan To Deleverage And Remain Profitable Amidst Global Economic Challenges - National Wire\" \/>\n<meta property=\"og:description\" content=\"Oando oil Plc aims to raise fresh capital over the next two years and repay debt used to acquire Conoco Phillips\u2019 Nigerian assets, its chief executive Adewale Tinubu told Reuters.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nationalwire.com.ng\/sub\/oando-plan-to-deleverage-and-remain-profitable-amidst-global-economic-challenges\/\" \/>\n<meta property=\"og:site_name\" content=\"National Wire\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-03T22:00:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-04-04T02:44:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2017\/05\/wale_tinubu.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"610\" \/>\n\t<meta property=\"og:image:height\" content=\"445\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Friday Ekeoba\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#website\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/\",\"name\":\"National Wire\",\"description\":\"About Nigerians, Nigerian Business and Other Stories\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/nationalwire.com.ng\/sub\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/oando-plan-to-deleverage-and-remain-profitable-amidst-global-economic-challenges\/#primaryimage\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2017\/05\/wale_tinubu.jpg\",\"contentUrl\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2017\/05\/wale_tinubu.jpg\",\"width\":610,\"height\":445,\"caption\":\"Oando Plc Chief Executive Wale Tinubu speaks during a Reuters interview in Lagos, January 13, 2009. 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