₦airaland Forum

jonnysessy:
April fool does not have a day 2. Where were you yesterday ?

RodgersAkpafu:
First Bank
pls shock us this week

Mpeace:
No be result go push first bank. Na Ote$ go push first bank. Just wait make he conclude the rights issue.
Na first bank he go use catch Dangote for forbes things. Lol

talk2me2:
The Drectors recommend a declaraton of dvidend of N,000 which translates to kobo per share of 50k each subject to the
approval of the shareholders at the Annua General Meeting.

https://doclib.ngxgroup.com/Financial_NewsDocs/43629_SUNU_ASSURANCES_NIGERIA_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2024_FINANCIAL_STATEMENTS_APRIL_2025.pdf

Bigdam:
why cant i liquidate my transpower shares?

Mpeace:
No be result go push first bank. Na Ote$ go push first bank. Just wait make he conclude the rights issue.
Na first bank he go use catch Dangote for forbes things. Lol

crownprince2017:
VFD group proposed #2 dividend and 1:1 bonus.

ojeysky:
April 1 passed jare, no need to fool around again

Bagwa:
Oando’s Moment: From Doubt to Determination


By Tanimu Yakubu

For years, Oando PLC has been the subject of public scrutiny and investor anxiety, navigating storms ranging from oil price volatility to regulatory disputes. Yet today, the company stands at an inflection point—one that could redefine its future and, just as importantly, silence the doubting Thomases.



Recent headlines surrounding Oando’s selection as the Government of Trinidad and Tobago’s preferred bidder for the lease of the Pointe-a-Pierre refinery raised eyebrows. Critics were quick to latch onto the term “accounting insolvency”—a technical classification that suggests a company’s liabilities exceed its assets. But a closer examination of the situation, particularly in the broader context of Oando’s strategic repositioning, offers a much more reassuring picture for shareholders and observers alike.

Let’s begin with the facts. In 2023 and 2024, Oando reported back-to-back profits—N60 billion and N65.5 billion respectively. This recovery follows a challenging stretch marked by multiple years of losses, and it didn’t happen by accident. Improved operational efficiency, disciplined cost management, and restructuring efforts have all contributed to this turnaround. While balance sheet pressure remains, these profits signal a shift in momentum and growing financial resilience.



Now, enter the Pointe-a-Pierre refinery. This is not just a symbolic win—it’s a strategic one. The refinery, if fully restarted, positions Oando as a significant downstream player in the Caribbean energy landscape. It offers geographical diversification, potential new revenue streams, and a rare foothold in a region where African energy companies have traditionally had little presence.

Understandably, the cost of restarting the refinery—estimated at over TT$1 billion—is daunting. But this is where the Government’s due diligence process matters. The selection was made following independent international advisory reviews and a Cabinet-level approval process. Furthermore, the ongoing negotiations with Trinidad Petroleum Holdings Limited (TPHL) suggest a structured and cautious approach. The risk is being managed—not ignored.

But the refinery deal isn’t the only card in Oando’s hand.

In 2023, Oando announced the landmark acquisition of a 100% stake in Nigerian Agip Oil Company (NAOC) Limited from Eni. This transaction has the potential to transform Oando’s upstream portfolio. NAOC’s assets include equity production from several oil mining leases (OMLs), stakes in key infrastructure like the Trans Niger Pipeline and the Okpai Power Plant, and a historically robust production base. This acquisition positions Oando to significantly increase its daily output, reduce operating costs per barrel, and regain stature as a major player in Nigeria’s upstream sector.
Oando’s acquisition of NAOC’s assets represents not just a strategic business expansion—but a textbook case of structured finance, often misread by surface-level analysis. The company deployed short-term leverage—estimated at around $750 million through a bridge or short-tenor facility—to finance the acquisition of assets conservatively valued at $2 billion. On the face of it, this is an accretive transaction, with significant embedded value.
The design of this transaction is fundamentally sound. The acquired assets are cash-flow generative from day one and have been ring-fenced to service the facility. This approach—where acquisition financing is directly serviced by the revenue streams of the acquired asset—is a standard in structured acquisition finance. It is a controlled, risk-allocated transaction model used in global M&A practice, particularly in capital-intensive sectors like energy.
Yet, predictably, critics are quick to point fingers: some suggest Oando is facing a liquidity crisis, others speculate on insolvency, and a few insist on immediate equity recapitalization. These criticisms, while common in public discourse, miss a key point—those who provided the capital, the financiers, undertook the actual underwriting risk. These are institutions with fiduciary mandates, robust risk frameworks, and capital at risk. Their due diligence, not public commentary, is the credible benchmark.
Indeed, the acquired assets underwent rigorous scrutiny by lenders and advisors. They passed every major threshold: solvency, liquidity, debt service coverage, and going concern. The financiers didn’t just approve a facility—they backed an acquisition whose balance sheet and cash flow impact met their internal credit risk and capital adequacy criteria.
Moreover, these assets have not only paid for themselves in debt servicing terms—they have improved Oando’s market position and future earnings outlook. Post-acquisition, Oando is more vertically integrated, holds more upstream control, and commands a stronger portfolio that enhances its appeal to both creditors and equity investors. This is not financial stress—it is financial engineering with a clearly defined exit strategy.
Critically, Oando’s approach mirrors a phased refinancing plan: secure the asset using short-tenor debt, consolidate and extract operational synergies, and then refinance with a blend of longer-term instruments—possibly including equity, convertible debt, or corporate bonds—under better terms and at improved credit standing. This is what any CFO or structured finance team would design under similar macroeconomic and asset market conditions.
This isn’t a company gambling on leverage. It’s a company using structured debt as a bridge to strategic growth—deploying acquisition finance intelligently in a resource-rich, capital-constrained environment. To interpret such a move as recklessness is to misunderstand the fundamentals of structured corporate finance.

So where does this leave shareholders?

Cautious optimism is the most prudent stance. Yes, the company still carries a heavy debt burden. Yes, it must demonstrate that recent profits are not a fluke but a trend. But the signs are promising. The NAOC acquisition deepens Oando’s core, the refinery deal extends its reach, and profitability signals internal discipline.
There’s still work to be done—particularly in refinancing liabilities—but the narrative has changed. Oando is no longer defined by its challenges; it is increasingly defined by how it’s confronting them.
For those who held on through the turbulence, this could be the start of the return. And for those still watching from the sidelines, the company may soon offer proof that a turnaround isn’t just possible—it’s underway.
Mr. Yakubu was an investment banker and until recently an independent non-executive director at Oando Plc.

SonofElElyonRet:
It won't be funny if it's a prank o

ojeysky:
It could be true o, because I just saw their financials and it's amazing. They moved from 750m loss to over 8bn profit with EPS of over 5naira coming from -2 naira.
It's almost on full bid already sef, so likely people have gotten insider info

temi4fash:
Please what does full Bid mean?

temi4fash:
Please what does full Bid mean?

ojeysky:
It could be true o, because I just saw their financials and it's amazing. They moved from 750m loss to over 8bn profit with EPS of over 5naira coming from -2 naira.
It's almost on full bid already sef, so likely people have gotten insider info

ojeysky:
It could be true o, because I just saw their financials and it's amazing. They moved from 750m loss to over 8bn profit with EPS of over 5naira coming from -2 naira.
It's almost on full bid already sef, so likely people have gotten insider info

ojeysky:
Simply put, full bid happens when people wants to buy but no one wants to sell

chimex38:
On Bid: Demand to buy a stock is so much that a long queue has been created and yet little supply quantity from sellers at the moment.

Full bid: Demand to buy a stock is so much that a long queue has been created and yet no supply at all from sellers at the moment.

Reverse is the case for offers and Full offers.

Princkez:
FBNH have credited it's right issue

RodgersAkpafu:
haven't seen mine