Mega Oil Firm Oando kept investors waiting for nearly a year to reveal its 2014 financial results— with good reason.

The once high-flying oil and gas company posted losses totaling $1.1 billion for 2014 and the first six months of 2015 together. The $923 million loss racked up for the 12 months to December 31, 2014 is a record in Nigeria’s corporate history outside of distressed local banks after the global credit crisis in the last decade. In the first six months of this year, the company’s losses topped $175 million.

The company’s troubles stem from its ambitious growth strategy moving from just being a successful marketer and distributor of oil products into the more capital-intensive oil exploratory upstream services, such as the $1.5 billion acquisition of upstream assets from ConocoPhillips. But it made most of its big moves just before world oil prices tumbled from highs of over $100 to around $40 now. This has meant several of its investments in exploratory and production assets have been written down by “billions of dollars” leading to large losses.

Despite the long delay to releasing its 2014 results, Oando gave investors no advance warning of the magnitude of its losses as is typical. The company said the delay was to avoid ‘inconsistencies’ as it reconciled its books and apologized for the delay.

Chief executive, Wale Tinubu said the business would go through a period of ‘prudent consolidation’. In a teleconference with investors he sought to allay fears of long-term financial damage, “the company is well positioned to return to profitability within a short period of time.”

Lagos -based economist Tunji Andrews of TTAC Africa, said despite the drop in oil prices, Oando was not “fully prepared” to enter the exploratory business. “They seem to be struggling to come to grips with impairment charges and raising debt,” he told Quartz.

The entire loss cannot be attributed to asset write-downs alone though as Oando’s oil marketing and distribution business was also hit by foreign exchange losses as the Nigerian Naira struggled badly.



http://www.thebreakingtimes.com/oando-posts-record-loss-of-1-1-billion/?

Cc: lalasticlala

It is well with them

Someone is gonna develop an ulcer behind this news.

shebbi dem use money take sponsor apc......
Now that baba is wiser than them and has shut the doors of governance on them, lets see how the proper wailing will kickstart from that angle.
So na why Tinubu been want make baba make wale tinubu the gmd nnpc, chai thunder plus sango and amadioha together strike the progrethieves from all left, right, centre amen.
Abeg make d thunders n the rest no go dey onitsha market dey do press up oooo.

NwaNimo1:
The $923 million loss racked up for the 12 months to December 31, 2014 is a record in Nigeria’s corporate history

na d money wey dem take sponsor apc and buhari.

^^^



Under a pdp government, whose campaign was the $20 billion spent on by the nnpc ?

IbokUtoroh:

na d money wey dem take sponsor apc and buhari.

Possibly - or the money the Tinubu's have siphoned at the expense of gullible investors.

$1.1 Billion? Whoa! That's much but then, I don't give A Housefly's prick bout it!

If they had lost it to me, Then that would have been a different case!

Jonathanohhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh

Was this after Baba returned $285million to treasury?

IbokUtoroh:
shebbi dem use money take sponsor apc......
Now that baba is wiser than them and has shut the doors of governance on them, lets see how the proper wailing will kickstart from that angle.
So na why Tinubu been want make baba make wale tinubu the gmd nnpc, chai thunder plus sango and amadioha together strike the progrethieves from all left, right, centre amen.
Abeg make d thunders n the rest no go dey onitsha market dey do press up oooo.

Learn to stick to one propangada at a time, is it no Longer Amaechi funding APC

Call in the auditors . . . .

419 - Chief executive, Wale Tinubu said the business would go through a period of ‘prudent consolidation’. In a teleconference with investors he sought to allay fears of long-term financial damage, “the company is well positioned to return to profitability within a short period of time.”

am sure it is to avoid tax and dividend for investors. Wale Tinubu and Directors will definitely go home smiling.

NIGER DELTA / ijaw


did you see ? you poo and drink from the same stream .



say no to barcanista known , moniker truckpusher

Only $1 billion BEING REPORTED . . .