₦airaland Forum

4dchairman: One certain thing is that OER has what it takes to close COP deal ,"The Corporation has secured firm commitments for all of these facilities and expects to use the proceeds from these facilities to fund the COP Acquisition and repay certain existing loans"
Oando Plc converted some of it's working capital to finance the Cop deal,this would have hampered its operation in the downstream( the extent of this will be revealed by the FY 2013 result and H1 2014 result).
As I said earlier, some of the loan are linked to the eventual completion of the deal in terms of payment "
The loan will be repaid quarterly using the proceeds of sales of the Corporation’s share of crude oil, natural gas liquids and electric power from its various operations subsequent to the completion of the COP Acquisition. As at March 31, 2014, the loan had not been drawn. " page 18.
My conclusion is that Oando is highly exposed to borrowing . In the same vein ,they are in position to make huge profit from the cop deal, a revenue projection of $900m and gross profit of $540 m. It worth the while.

While that bolded is a long term thing, we await the 2013 FY result to see whats up with/in Oando plc, just that some things might be concealed, trust the smart cowboys.

4dchairman: Reference to page 4.3. Oando Plc made $1.2 billion available to OER at the rate of 4% when drawn and it also has a clause that the loan can be converted to equity,the losses incurred by OER is from such payment to OANDO Plc, why the astronomical nature of the exposure? I will say the Company has started incurring expenses without taking procession of the asset and possible revenue from the asset."On February 10, 2014, the Corporation signed a loan facility agreement with Oando PLC which included a financing fee of 4% of the amount covered by the $1.2 billion facility. The financing fee is due on repayment of the loan or conversion of the loan to equity; the Corporation also has the option to settle the financing fee in equity if the loan is converted to equity."
On loan repayment the the company negotiated favourable term of payment ,an increase of 1% in interest rate will increase payment by only $0.9m."Price risk: if the prices of crude oil decreased by 10% assuming all other variables remain constant, the impact on loss before tax from the changes in the fair value of derivative commodity contracts would be nil; and "
Most of the sales and loan deals are structured in a way it will not impact much on the company when prices of crude falls.
My question is that the loan given out by Oando Plc to OER now converted to shares belongs to whom? If the shares belong to Oando Plc ,expect some shares for every units held,the loan is from working capital of Oando Plc.

Well, all you just said up there are true, but one question is this? The loan from Oando plc converted to equity, where did Oando plc get the fund? 601m dollars?? that's huge....... meanwhile, financing fee on the 601m dollars will be paid by Oando plc, that will affect their bottom-line bigtime.

Please note that only $601m has been invariably made available by Oando plc for the COP deal, it still remains $599m, how will they get that? still loans from banks? which will definitely lead to more costs to be deducted from revenue.

By the way, them Oxygen boys, #respect.

@4dchairman, Sir, when free, I will reply you....

Hi all, use this to access latest on the floor

http://nayafinance.globaltrybe.com/apps/nayamoney.aspx?app=nayamoney&sid=3319a12e-9d5a-11e3-9c49-0291cce1c554&style=nayamoney_businessday&layout=standalone_layout&showtitle=true&brand=false&trdvw=&srtby=Symbol&srtdir=ASC&nocache=3b1b5e9c-fba0-4c7b-ae91-89f6a331c837

Copy and paste, dont click on the link.

4dchairman: OER is not OANDO Plc, will OANDO Plc revenue be $32.16 million in 3 months(page 4), net loss of $32.348 million ,the loss was mainly financial expenses of $34.8 million (page 6). I repeat one of the main reason of incorporating OER is to serve as the platform for current and future acquisition. So we are still expecting OANDO Plc financial report.Oando Energy Resources Inc. (“OER" is a publicly traded company listed on the Toronto Stock Exchange (“TSX”) under the symbol “OER”. OER was incorporated under the laws of Canada. OER’s registered office is located at 3400, First Canadian Center, 350 7th Avenue SW, Calgary AB, T2P 3N9, Canada and head office is located at 1230, 112 4th Avenue SW, Calgary, AB, T2P 0H3, Canada. OER and its subsidiaries (together, the “Corporation”) is involved in the acquisition of petroleum and natural gas rights, the exploration for and development and production of oil and natural gas primarily focused in Nigeria, and São Tomé and Príncipe. The ultimate parent company is Oando PLC, who owns 92% of the share capital of the Corporation and is the ultimate controlling party. Unless otherwise noted, all references to the “Corporation” mean OER and its subsidiaries. Page 7 of the report.
All we are witnessing in the market is sheer ignorance of the state of affair of Oando Plc.

Hmmmmmmm! I will refer you to note 1.2 and the whole of note 8 in the report, meanwhile, check out the bolded, if the corporation is incurring losses, who is going to bear it? minority shareholders

feelamong: any way I will narrow to just 3

Wapic

AIICO

NEM.....

Wa gbayi!

Elai147: Abeg make una erase #10 junction comot for una junction directory. #20 junction is okay because Oando no longer has a bus stop @ less than #19. We need to start having realistic junctions abeg because na human beings enter @ #30 junction, we cannot afford to waste much of their waiting time.

Okay sir!

Born2berich: Now you are talking. I still have little units in oando which my broker erroneously forgot to sell after i made about 70% gain in the stock( Although i plan to buy more at my junction). So many people are in oando expecting it to fly above N100 in a twinkle of an eye but they will be left with heartbreaks over and over again while WT is using this stock and the emotions of people to make billions for himself. This is the bitter truth and not bad belle talk.

Anyways i dey my usual junction dey wait to matchete this stock die finish. E be like say na only me dey junction sef.

If it is #10 junction, I don divide myself into two, one at #10 junction and the other at #20. No time

4dchairman: Reading the OER (Oando Energy Resouces) Financial Report this morning all it takes to complete the deal is available, but many equate the loss made by OER to that of OANDO PLC. The loss made by OER was as a result of the acquisition of COP,though I'm of the opinion that OANDO PLC may barely survive making loss . In nutshell there is no justification for the panic.

Egbon, you need to re-read that report

Abeg, me dey wait for #20 junction o, don't be surprised if these Oxygen guys decide to raise more capital soon (you should understand what I mean)

Dont quote me!

Dexterax: Good family, be patient, he's still mopping up the insurance positions.

I fear o...

Abeg, W and A must dey o

UkwuAmu: Buffett warned us that if you do not understand a business, please run as fast as you can. I must confess there are some super investors in this forum who know what they are doing . Sorry for my long rant but lets keep our expectation in perspective before we get burnt

Abeg brother, tell us the monikers of these super investors, I will appreciate sir, cos I wanna be following them on bumper to bumper level.

I pity you, you are bringing a case like this to a public forum without yourself being 'profiled" sort of, who knows, maybe some of your top guys are nairalanders, on seeing this, they would now make you a case study.

Be wise next time........

gabscity:

what will u say to people who have million units and scared to disclose it?

when OandO start rallying now dem go come dey brag for here! lols

#hidingUnderMyBed

Na true o, oya you guys should come out now or never

W for Wapic, we still dey together, no pressure on it, lets see how it goes today.....

O for Oando, that thing will still go down, rights issue things, anyway, we are still waiting at that junction, (that= #10 or #15 or #20 or #23), apologies to securi

T for transcorp, omo that stock still get prospect o.

S for Sterling, Soup toh make sense, it should still go up.

A for Aiico, see volumes mehn, we hope to see positive movement today.


Ps Don't quote me.

gabscity: How long sir

Just trying to tell that bearish trends can be around for a while, it all depends.

But then, I don't think bearish stuff is around yet, just speculations, be cautious.

Aks: Portfolio may be in RED but 1 thing i'm sure of is that the bear won't last long.

It wont last forever, but it may last long.......

Elai147: NSEASI is at the final wave of the recent Elliot wave pattern. We should expect the bears any moment from now and investors should trade with caution because most people will be thinking of offloading...

Buh we've all been shouting/talking about the bulls na, kilode?

Anyway, me dey wait for Oando at #20 junction. No lele!

securi: Hmmmm evilspirit!

Mehn! Prices are seriously nose-diving o......scary

mkmyers45: I didnt ban you

Whaoh! Polite and touching.......Kudos!

Aks: Market aint smiling but it is expected. #noshakings

Mehn! Today dey bloody ooo, what is happening now?

#Oando, please, we are still waiting o...

KiddaBlingzz: Mai shai

Fisherman

faakay: this is why they need me

production of robots - three different kinds

a human being - I will use myself as sample in the laboratory - then another one which will be used to combat terrorism and used in the military forces and police forces etc

Human Made Machine http://faakay..com/2011/12/human-made-machine_26.html - and other inventions I want to invent - all the other scientists are waiting for me, they are in California

I have also written a letter to the President of Nigeria and I'm still awaiting response

Check the letter here - http://faakay..com/2014/03/letter-to-mr-president-federal-republic.html which has been sent to all the Nigerian TV stations and Radio stations in the development of humanity

So the wife should know the kind of person she wants to marry

Bros, check out the bolded, that "another one", hope it wont be the wife that you are looking for that will be the other sample sort of for your experiment.........choi!

^^^



That Cleverly would bench Reus/Gotze/Kroos? Am sure Coogar was joking, that headless chicken...hahahaha

As for Hart benching Neuer, no comment!

alutacontinua: hehehe
classic Naija guy-'t'was a test'
Thunder fire me if I pass this kain test

Buh if truly the guy isn't feigning sort of, then he no try at all.

Am sure the guy is just being scopy about everything, he is more than what you are seeing, but then our ladies don't know how to look inwards and see.....

Maybe I am wrong sha.

Are you guys still doing fundamental analysis? Abeg, just enjoy the moment while it lasts!

elampiro: Shares of Manchester United surged almost 5% yesterday after the club announced its new, $130/£75m a year kit deal with Adidas.

Wall Street now affords United an enterprise value of $3.6 billion making them the most valuable team in the world.

Top Shirt Sponsorships:

Team............Sponsor....................Annual Value
Man United...Chevrolet..................$80/£46m
Barcelona.....Qatar Airways...........$45/£26m
B Munich.......Deutsche Telekom...$40/£23m
Real Madrid...Emirates..................$39/£22m
Liverpool.......Standard Chartered.$31£18m
Sunderland...Invest in Africa..........$31/£18m

Top Kit Deals:

Team............Sponsor..........Annual Value
Man United....Adidas............$130/£75m
Arsenal..........Puma.............$51/£30m
Real Madrid...Adidas...........$41/£23m
Liverpool.......Warrior...........$39/£22m
Barcelona......Nike...............$38/£22m
B Munich.......Adidas............$38/£22m

[Source: Forbes]

Choi! Man utd is baba o, see gaps!

Dexterax: I dey talk Toronto positioning, you still dey find junction for NSE...

Bros, make I no cross border, na charges go kill person.....