₦airaland Forum

lionshare:
Our timekeeper is offline

Ding master...

HesInMe:
Basic accounting should suggest that the repayment of a debt that is already on the books should have no impact on shareholders' equity -- unless there are gains (or reversal of write-offs) arising from the repayment. That's unlikely, since the debtor in this case, Whitmore Asset Management, is owned by Tinubu and Co. That's how riddled with ethical issues this "deal" is.

It is complicated... But they must find a way around it else this may destroy the trust current investors have on Oando and Wale.

GeeKudi:
A vivid illustration of being tossed about by the wind and I don’t think any serious minded person should take any of your claims seriously

Wetin concern you? I don't give investment advice to anyone. I risk my own money and play the game how I deem it fit.

Stay on your lane. I usually don't like trading words with anyone but pls stop mentioning me in your posts.

mikeapollo:
If is it true that shareholders actually expressed preference for cash payment, then it shows how shareholders could sometimes undermine their own interest.
What was the value or price that was agreed or placed on each share?
So what happens if Oando management adopts a particular value per share to pay cash to the shareholders and then the share price on the NGX jumps higher the following day or week?

And I asked him this:

But how does Oando get the huge cash bonuses given that there are money issues with the company. Also what happens to the shares the debtors are using as a form of repayment for their debts?

A share bonus would have been the best workable plan

megawealth01:
I hope to remember to tell you to sell at 100 because E go pass an soon?

I am just regretting why I didn't buy the 20,000units today. I pray Oando does not announce the share bonus/redistribution details tomorrow.

I need to load 50k units tomorrow.

This is what my stock broker just sent me about the Oando bonus or reward.

The issue of the share bonus now has a double edge sword, depending on what strategy the management feels best. It would either come inform of cash reward or the script issue (bonus) shares.

Going by the narrative during the AGM, shareholders support the cash reward as to the preferred bonuses, which to me is good compared to share bonuses which might indirectly spur excess supply by minority shareholders on the short run.

BabsO2:
Oando may not move well until its numbers and share distribution become clear. Or until a market mover understands it better and swoops in. Mr Time will bring clarity to the investment value of Oando, Aradel & Seplat and Mr Market will adjust Oando price up. Mr Time has the final say on how high up. This thread has a market valuation of Oando in solid 3 digits above N 170. Patience is key for this Oando parry.

I like this sound of this. ₦100 is enough for me.

ositadima1:
It is done and dusted; the shareholders have already voted in favor of the resolution. The big man even explained that other shareholders will go from 42% to 65%, and the majority shareholder from 23% to 35% or so. This gives more power to the minority, hence his mention that the takeover will not work after this.

They will not pay money, and if they do, who will inherit the shares? This would means the management still has the intention to buy out.

Desiking will get his 2.5 million guaranteed. 👍

Because of you, I go go buy the 20,000 units I initially plan adding...Your confidence dey encourage me.

But I hope Wale no go shame us.... This whole thing look too easy but I am surprised the market is not seeing this huge short term returns.

I wanted to add more Oando to my 50k units but after I check some calculations made here I decided not to add more.

If the Share redistribution (alias share bonus) details and dates are announced, Oando will certainly cross ₦100 per share.

My 50k units will make my Oando portfolio ₦5m and if the bonus ratio is 1:2, that will make my total volume 75,000 units and that will make my portfolio further expand to ₦7.5million from its current ₦3.5m.

That is more than ₦4million profit and 100%+ ROI.... If Wale fit deliver, he will me my Daddy OO

But fear no let me add any units more because it is more of a gamble.

Youngzedd:
Oando management should go do 2 years internship at Aradel.

I swear... Wale run AGM, investors hit am with massive selloff.

Many felt investors didn't interprete the messages from the AGM properly but the truth is that investors are indifferent about this Oando. They are not just interested at the moment.

Even with the great ENI AGIP assets they acquired, they can't still raise the company from it ashes. The management team at Oando are politicians.

Aradel share price was seriously hit after listing on the NGX but they never ran to the media to whip up sentiment to sure up their share price. They maintained their cool and focused on growing their brand and today, they are back on winning ways.

Aradel making us proud and making the XMas a memorable one for us.

Oando should learn how to manage a mega corporation without political-like gimmicks and media sensationalization.

mikeapollo:
Don't be quick to jump to hasty conclusions.
This Xmas/New Year period has been usually bearish since time immemorial.
The Oando shareholders that attended the AGM are part of the ''market'' and they expressed confidence and trust in the share redistribution by adopting the resolution.

O ye stubborn generation, when will you ever have a change of heart and believe Daddy wa, the father figure?

But Aradel is posting positive share growth for days now.

If truly investors believe that they will truly get a 'share bonus' of even 1:3, they would have jumped in.

They are not seeing how realistic this share redistribution thing is... Even Oando has not provided any clarity on this hence market reaction has been uninteresting

naturalflow:
Oando no dey give insider trading reports?if this bonus distribution is not audio,we should be seeing insider trading note flying up and down.

The details of the share redistribution is sketchy hence the market is still experiencing selloff of the Oando shares.

The market reaction is a testament of lack of trust or confidence in any possible share redistribution. Though I am going to buy more Oando, it is a gamble I am willing to take.

I still prefer investing more money in Oando than in Aradel at this current price.

I already have 5,000 units of Aradel and that can ride the market for now. I sense something big is coming for Oando and I intend picking another 20,000 units of Oando tomorrow.

ADDRESSING NNPCL'S MISINFORMATION

We have received numerous inquiries from the media and other concerned stakeholders seeking clarification on a recent report attributed to the Nigerian National Petroleum Company Limited (NNPCL) that their decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote refinery during liquidity challenges.

We would like to clarify that this is a misrepresentation of the situation as $1bn is just about 5% of the investment that went into building the Dangote Refinery.

Our decision to enter into a partnership with NNPCL was based on recognition of their strategic position in the industry as the largest off taker of Nigerian crude and at the time, the sole supplier of gasoline into Nigeria.

We agreed on the sale of a 20% stake at a value of $2.76 billion. Of this, we agreed that they will only pay $1 billion while the balance will be recovered over a period of 5 years through deductions on crude oil that they supply to us and from dividends due to them. If we were struggling with liquidity challenges, we wouldn't have given them such generous payment terms. As at 2021 when the agreement was signed, the refinery was at the pre-commission stage. In addition, if we were struggling with liquidity issue, this agreement would have been cash based rather than credit driven.

Unfortunately, NNPCL was later unable to supply the agreed 300 thousand barrels a day of crude given that they had committed a greater part of their crude cargoes to financiers with the expectation of higher production which they were unable to achieve.

We subsequently gave them a 12-month period for them to pay cash for the balance of their equity given their inability to supply the agreed crude oil volume. NNPCL failed to meet this deadline which expired on June 30th 2024. As a result, their equity share was revised down to 7.24%. These events have been widely reported by both parties.

It is, therefore, inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges. Like all business partners, NNPCL invested, $1 billion in the Refinery to acquire an ownership stake of 7.24% stake that is beneficial to its interests.

NNPCL remains our valued partner in progress, and it is imperative for all stakeholders to adhere to the facts and present the narrative in the correct context, to guide the media in reporting accurately for the benefit of our stakeholders and the public.

Anthony Chiejina
Group Chief Branding and Communications Officer
18th December, 2024

mikeapollo:
You are still not believing Daddy wa? The father figure?
You must be very stubborn

mikeapollo:
Lol
But you were bashing Oando management just yesterday, and praising Seplat and Aradel instead.
Will you ask father Wale for forgiveness now?

Until he fulfills the share redistribution process, it is still all talks no motion.

GeeKudi:
Should be a smooth ride to #100 from now especially with the expected delectable Q4 result.

The market response today will tell.

megawealth01:
Wale said "distribution" na Wale I follow nobi any other person. He even said he go dey share us billions yearly

Wale is a father figure...

MTN Pays ₦200bn Monthly In VAT, The Highest — Tax Committee


The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has disclosed that MTN Nigeria contributes over N200 billion in Value Added Tax monthly, making it the largest contributor to the nation’s VAT pool.

Oyedele made the disclosure recently while speaking as a panellist during Channels Television’s Town Hall on Tax Reforms.

He used the platform to highlight disparities in the current VAT distribution system and explained the reforms aimed at addressing them.

According to the tax expert, the current system allocates all VAT paid by the country’s biggest telco to Lagos State, where the company’s headquarters is located, even though the services that generate this revenue are consumed nationwide.

“MTN is the largest contributor to VAT in Nigeria. So they, in fact, pay VAT of over N200bn every month; the gap between them and number two is huge.”

Nigeria’s premier and largest non-interest bank, Jaiz Bank Plc has achieved the new minimum capital requirement stipulated by the Central Bank of Nigeria (CBN).


The emergence of Jaiz Bank as one of the first to meet the new capital base came after the CBN, Securities and Exchange Commission (SEC) and Nigerian Exchange (NGX) cleared the bank’s N10.04 billion new equity funds.

Jaiz Bank had raised N10.04 billion through a private placement. The listing of the shares that arose from the private placement on the NGX marked the conclusion of the issuance process and confirmed Jaiz Bank’s early success ahead of the June 2026 deadline.

Princkez:
OANDO will do full bid today...

How? Lol... Abi Na another Oando?

Coolcash1:
https://africaoilgasreport.com/2024/12/farm-in-farm-out/nigerian-government-very-close-to-granting-ministerial-consent-for-shell-renaissance-deal/?mc_cid=368a8e66a3&mc_eid=28f81c9dc5

Aradel will soon zoom off!

Aradel and Seplat are sweet. These two oil Corporation will make Nigeria proud.

Oando is all noise and paparazzi with no movement at all.

And who will implement this new law? Same corrupt policemen I suppose?

Make Oando hurry up return back to ₦30/₦40 so that we can load more for a long term hold.

For now, forget about Oando doing ₦100. It will oscillate between ₦45 - ₦65 which is ₦20 possible takeout each cycle.

Na clowns full this Oando management. They are not serious for a mega oil Corporation. They should learn from Seplat and Aradel.

Wale style of leadership is the singular reason Oando is still in a messy state.

Oando might struggle for a while before any meaningful progress can be seen.

Massively dumping of the Oando stock is ongoing and might continue till Friday. Oando may touch ₦45 with this renewed selloff

Oando Plc Q3 2024 Financial Performance: A Mixed Outlook for Shareholders and Future Investment

Oando Plc, one of Nigeria's largest integrated energy companies, has recently released its unaudited consolidated financial results for the third quarter ending September 30, 2024. The company’s performance during this period presented a mixed bag of results, revealing some positive growth but also significant challenges that concern shareholders and potential investors. Despite favourable global oil demand and energy market conditions, Oando’s performance in key financial metrics displayed a level of underachievement that prompts a closer examination of its future prospects.

Oando's top-line performance showed an encouraging growth trajectory, with revenue increasing to N3.19 trillion from N2.35 trillion in the same period in 2023. This growth was primarily driven by a substantial increase in sales volumes, especially during Q3 2024, indicating that the company was able to capitalise on rising global oil prices and demand. The company's gross earnings also mirrored this positive trend, rising sharply from N91.79 billion in 2023 to N194 billion in the same period in 2024.

While this growth in revenue and earnings is commendable, it must be noted that it did not necessarily translate into improved profitability. The cost of impairment on financial assets, along with a sharp increase in net administration expenses, resulted in a substantial rise in operating losses. The net loss for the period stood at N25.53 billion, a significant downturn from a loss of N748 billion reported previously. This suggests that while the company increased sales, it struggled with cost management and operational inefficiencies, factors that undermine its long-term financial health.

Oando’s operating income saw a notable decline from N209.65 billion in 2023 to N161.01 billion in 2024. This reduction in operating income is concerning, particularly in light of the revenue growth, as it suggests that rising operational costs and administrative expenses are outpacing the company’s ability to effectively manage its income streams. Consequently, the profit before tax (PBT) for Q3 2024 dropped substantially from N142.58 billion in 2023 to just N31.13 billion in 2024, further highlighting the strain on the company’s profitability.

The company’s bottom-line performance also weakened, with the profit for the period falling from N110.21 billion to N76.39 billion year-on-year. This drop in profit is worrisome, as it reflect underlying issues within the company that hinder future growth. Given the challenging macroeconomic conditions, including fluctuating oil prices and global inflation, Oando need to adopt more aggressive cost-cutting strategies and efficiency measures to turn its financial performance around.

An alarming aspect of Oando's financials for Q3 2024 is the substantial increase in finance costs. The company’s finance costs surged from N89.46 billion in 2023 to N158.17 billion in 2024, marking an increase of nearly 77% year-on-year. This spike in finance costs, combined with a rise in net finance costs from N77.07 billion to N131.12 billion, signals that Oando is likely grappling with high-interest payments and financing challenges. These rising finance costs continue to drain resources, putting additional pressure on the company's bottom line and its ability to service its debts in the future.

The company's earnings per share (EPS) saw a decline from 900 kobo in 2023 to 600 kobo in 2024, reflecting the reduced profitability. This decline in EPS is a cause of concern for shareholders, especially those hoping for positive returns on their investments. The reduced EPS might dampen investor sentiment, as it signals that despite growth in revenue and earnings, Oando has not been able to translate that into effective shareholder value.

One of the most pressing concerns in Oando’s financial results is the sharp increase in its liabilities. The company reported a significant rise in trade and other payables, with total liabilities reaching a staggering N8.04 trillion, up from N1.38 trillion in 2023. This substantial increase in liabilities is a critical indicator that the company is facing heightened financial pressure, potentially threatening its ability to meet its obligations in the future.

The retained loss for the period was recorded at N441.8 billion, a slight improvement from the previous year’s N506.01 billion. However, despite this improvement, the company still faces substantial accumulated losses, indicating that it has yet to recover from previous years of financial strain. These liabilities, along with the negative cash flow and financial impairment, limit Oando's capacity to reinvest in growth opportunities or address shareholder concerns.

Outlook as a Going Concern

Given the mixed performance outlined above, Oando Plc’s outlook as a going concern remains uncertain. While the company has managed to grow its revenue and gross earnings in a challenging global energy market, the persistent issues related to increasing operating costs, rising finance charges, and declining profitability raise red flags regarding its future stability.

The significant rise in liabilities also presents a serious concern for investors, as it suggests that the company is relying on additional debt to fund its operations, which further strain its financial position. The company’s ability to service this debt, maintain liquidity, and reduce its impairment losses will be critical in determining its long-term viability.

For shareholders, Oando’s current trajectory suggests that the company is faced with short-term financial challenges, and there is limited returns on investment in the near future unless the company implements effective strategies to manage costs, improve operational efficiency, and reduce debt. The company’s ability to navigate these financial difficulties and achieve a turnaround is crucial to sustaining shareholder confidence.

Oando Plc’s Q3 2024 financial results present a somewhat disappointing picture for shareholders and investors, with growth in revenue and earnings overshadowed by significant challenges in profitability, rising liabilities, and increasing finance costs. The company’s future prospects will heavily depend on its ability to manage costs, improve efficiency, and reduce debt. While the oil and energy markets remain favourable, Oando must navigate its internal financial struggles to secure long-term sustainability and regain investor confidence.

Streetinvestor2:
Wale has answered the call.You now have what to talk about at the agm plus 10% gain tomorrow...wale you be street

Wale Na Megawealth man. Wale knows how to game the market perfectly.

10% is sure tomorrow

Raider76:
But why didn't you go back in? I also sold at around #40. But I went back in when it came down from the peak of around $90. So far I have made about 30% return JIJOing in Oando since then. I am now on my 3rd ride.

Same with me. I initially entered at N30 and sold at N78 and re-enter at N56. I am currently on my second ride.

Mills55:
After tomorrow's AGM, either OANDO vomits or it will be vomited .Two things are involved after the meeting.

Tomorrow will determine if Oando gets dumped or retained on many traders portfolio. There will be a lot of volatility tomorrow.

We hope Wale has some positive news for us tomorrow.

mikeapollo:
Could this be @Megawealth recommending Oando to anyone in this world?
Am I dreaming? or reading correctly?
Wonders shall never end.!

Now, I am beginning to believe that Oando may have a bright future after all.
When @Megawealth recommends a stocks, you know what follows!

Megawealth issues is with Wale and his style of management but for Oando as a company, megawealth believes Oando has a lot of potentials

megawealth01:
The movement of ARADEL gives me this vibe that if WALE change his ways Oando suppose catch up with it within JAGABANomics

Oando, Aradel and Seplat are the main focus in the oil and gas industry. Oando is lagging and will soon catch up.

Oando will cross the ₦100 psychological resistance soon.