₦airaland Forum

I have done a preview of the OandO '24 AFS.

My observations:

a. The Group made a gain of 784.8bn on the purchase of NAOC assets.
b. Finance costs gulped 235.8bn
c. Exchange differences on translation of foreign operations gulped 307.5bn from 130.5bn
d. FX loss gulped 173.3bn (I'm yet to fully understand the difference between c & d
e. The profit for the year (220.1bn) is overshadowed by the comprehensive loss for the year (83bn)

IF [a big if] production can be ramped up AND crude prices stay above $70 pb, we should see massive changes considering the fat that USD/NGN has stabilized.
I anticipate a much improved Q1 '25

PS: while Chairman's fees was stated as 5.55mn, a certain director took home 1.8bn for 2024...

Every mallam to his kettle

I meant there are other loans NOT repaid with crude.
Those are the debts that swell the Finance Costs...

Streetinvestor2:
You still said it will be repaid via crude so what is the wahala.
Then if the price drops below the bench mark.The improved production quantity will take care with extended yrs for payment if it becomes necessary. The working capital was the immediate concern which has been taken care.
When we get to that other bridge we go still find way to cross it.

How ellahlakes wan take raise thr own working capital as they have defaulted in the previous loan.This an immediate need and problem .

How do u think oando was able to pay down 400 million dollars from that money. Abi dey don start rituals in 5 yrs

zendi:
Emir01, I suppose by the whole world you mean deranged, anti-Semitic, leftist, Hamas defenders of Europe and North America?

Hamas bears the blame for all carnage and destruction because they started war, fight with civilian shield and will start it again in the future if Natanyahu is not allowed to properly sort them out now.

I think the evil and genocidal intent is from the other side but let's not derail this thread now.
I know that words like 'Occupation', 'Civilian deaths', 'Humanitarian' 'Starvation' etc are very close to your lips right now but these are not matters for this thread.
Maybe one weekend when this place is less busy.

Now back to our enjoyment of all the high drama around the Oando-Ellah debates.

May Oando and Ellah flourish.

I believe Q1 result will be a bit better. H1 should reflect much improved result. Oando was battling with major pipeline vandalism in Q1

[author=KarlTom post=135624469]I have done a preview of the OandO '24 AFS.

My observations:

a. The Group made a gain of 784.8bn on the purchase of NAOC assets.
b. Finance costs gulped 235.8bn
c. Exchange differences on translation of foreign operations gulped 307.5bn from 130.5bn
d. FX loss gulped 173.3bn (I'm yet to fully understand the difference between c & d
e. The profit for the year (220.1bn) is overshadowed by the comprehensive loss for the year (83bn)

IF [a big if] production can be ramped up AND crude prices stay above $70 pb, we should see massive changes considering the fat that USD/NGN has stabilized.
I anticipate a much improved Q1 '25

PS: while Chairman's fees was stated as 5.55mn, a certain director took home 1.8bn for 2024...

Every mallam to his kettle[/quote]

KarlTom:
I meant there are other loans NOT repaid with crude.
Those are the debts that swell the Finance Costs...

ok ,I guess local debt.So how much should they be looking for from the market if they want to take care of it..If the loss from last Yr forex dealings does not happen again. And such is channelled toward it Will it not make big difference. I hope the finance cost you quoted was not just for servicing. I believe some principle dey inside

Access Bank (Masters of M&A)

Coolcash1:
This report has just confirmed that OANDO is a walking corpse!

My exit strategy is to allow the management pump the price ahead of their planned equity raise and exit my investment in the moribund company….

Those going concern issues raised by their external auditors cannot and should never be ignored. The truth is, the company has been badly managed and the entire management needs to go.

Ire o.

source please

Off Market Bua Cement

Streetinvestor2:
Loco my mentor for jijo looks he is going to become ellahlakes investors until the ceo makes international press conference this time or show us the video of the working oil mill installed

We only quenched their plan of moving the stock 10% today.we traders have full control of Ellah lakes.we will decide when to go up or down.Loco can't be Ellah lakes shareholder and Loco can't do without entering Ellah.She is always our concubine not wife

Don't bother much whether Loco is trapped or not.We are playing games here until Chuka take his shareholders serious,Ellah will not have rest

Before and from the outcome of the last AGM, they made it very clear that they are not coming to the market to raise funds. They mentioned bonds and similar financial instruments but not equity.

KarlTom:


They are likely going to raise funds.
Finance Cost is a cancer in the books

Ellah is like PDP whey APC don cage.
Even if Ellah form coalition,no way out.

The only way out is show us your farms and oil mill.Let everything become operational and we invest and allow the stock price to have her way.

Another way for Ellah is to hold 90% of their shares and tighten the free float but they can't do it.Chuka has recovered all the money he spent on the company and now he is collecting Awoof money in the name of MD.Na underground work we go dey do for him.

Oando people Una weldone oooo.
It's unfortunate I no dey do blue chip stocks.
We no get control over blue chips.

Make Una jolly dey go but remember una get negative retained earnings and Billions of losses.Make una make your Auditors happy for once and cover up lapses.

Xidget:
Aside from being illiquid, do you think it's undervalued at current price?

This is the first time bua cement will be making sense to me in terms of value since it was listed.
They have an outstanding q1 which I think is too good to be replicated in the remaining quarters of the year. If they can continue in this direction, price will have no other way to go but up. The big question however is when.

O.K.O.

cocolacec:
Off Market Bua Cement

Material Uncertainty Related To Going Concern. Pg 11 AFS '24

"As stated in the note, if the planned actions including ₦360 billion equity raise are successful, it will only address 11.4% and 8.4% of the Group's projected funding gap for the year ending 31 December 2025 and 2026 respectively. Management however has additional plans to address the 88.6% and 91.6% of the projected working capital deficiency for the two years through vendor financing until such a time that profit and healthy cash flows from profitable operations will be achieved. Management is also currently making efforts to sign a binding agreement with each prospective equity provider.

The Directors/majority shareholders of Oando PLC had given a Letter of Guarantee to inject additional capital through Rights issue, and Public offer in addition to commitment to convene an Extraordinary General Meeting of the shareholders to address the urgent capital requirement in line with the Provision of Section 137 of Companies and Allied Matters Act. 2020 and the Directors fiduciary responsibilities and commitment to address the financial conditions of the Company.

However, there is material uncertainty about the success and timing of the additional plans including the bond and equity raises given that the projected funding gap continues to worsen over the years..."

GeeKudi:
Before and from the outcome of the last AGM, they made it very clear that they are not coming to the market to raise funds. They mentioned bonds and similar financial instruments but not equity.

debeey87:
@streetinvestor

Paragraph 2 under material uncertainty related to going concerns is all you need to understand better what karltom and sunrise pebble were saying about oando. Even after pledging their assets, auditors are saying they won't meet up if they don't raise additional capital as it only covers 11.8% and 8.4% funding gap of the business for this year and next. Make shareholders no expect anything
till 2027.

They may start asset stripping soon

material uncertainty related to going concerns


"Material uncertainty related to going concern" is a term used in financial reporting, particularly in audit reports. It refers to a situation where there are significant doubts about a company's ability to continue operating as a going concern.

This uncertainty can arise from various factors, such as:

1. Financial difficulties
2. Liquidity issues
3. Significant losses
4. Dependence on external funding

When auditors identify material uncertainty related to going concern, they highlight it in their report to alert stakeholders about potential risks.

Am interested

No need for English (I know you have sense, so think am: even consulting firms typically don't have zero cost of sales). Ellah's CEO said on the Arise interview that the large majority of sales came from sales of fresh fruit bunches.

What's your analysis now?

ositadima1:
I’m speaking from a neutral standpoint here — neither in support nor against. A zero cost of sales is entirely possible. If you look at their financials again, you'll see they haven't sold any physical goods — no seedlings, no palm fruits — contrary to some claims that they’ve started selling farm produce. This suggests there was likely no initial investment in what’s generating revenue.

There are several ways a farm can generate revenue without incurring a direct cost of sales, such as:

Agricultural consulting services

Land leasing or rentals

Farm equipment leasing or rentals

Agricultural training

Brokerage or matchmaking services in agriculture

While none of these may be their main source of income, they also never claimed to be selling goods produced on the farm, yet. So yes, it is very possible. Let's be arguing with sense!

KarlTom:
Material Uncertainty Related To Going Concern. Pg 11 AFS '24

"As stated in the note, if the planned actions including ₦360 billion equity raise are successful, it will only address 11.4% and 8.4% of the Group's projected funding gap for the year ending 31 December 2025 and 2026 respectively. Management however has additional plans to address the 88.6% and 91.6% of the projected working capital deficiency for the two years through vendor financing until such a time that profit and healthy cash flows from profitable operations will be achieved. Management is also currently making efforts to sign a binding agreement with each prospective equity provider.

[b]The Directors/majority shareholders of Oando PLC had given a Letter of Guarantee to inject additional capital through Rights issue, and Public offer in addition to commitment to convene an Extraordinary General Meeting of the shareholders to address the urgent capital requirement [/b]in line with the Provision of Section 137 of Companies and Allied Matters Act. 2020 and the Directors fiduciary responsibilities and commitment to address the financial conditions of the Company.

However, there is material uncertainty about the success and timing of the additional plans including the bond and equity raises given that the projected funding gap continues to worsen over the years..."

The auditing firm hates o and o too much

Na Almighty God drop the FFB for Ellah like manna from heaven?

USA2019:
Again, I’m not holding brief for the company—they could be fraudulent for all I care—but it’s possible. Kind of like buyers showing up to purchase FFB right at the farm gate.

KarlTom:

Israel is a barbaric genocidal country, it doesn't started in October 2023. There countless of Israel genocide against Palestinians. A genocidal apartheid state called Israel is just US military base in the Middle East.

pluto09:
The auditing firm hates o and o too much

I don't understand your angle but the remaining wahala now for funding na just 360 billion for projected two yrs expenses.
They will equally cross this bridge via equity
For now the price needs to rise reasonably for such..

Why nobody is talking about paying down of #550 million dollars to #100 million dollars.
It becoming obvious the negative views by some people on oando is not just about fundamental.God knows I don't know how to do such
When you do right I go salute and when you fail.i will hammer ur head

Oh thanks. I plan to read through the audited report over holiday weekend. It appears they have changed their initial plans for capital raise without issuing new shares.

KarlTom:
Material Uncertainty Related To Going Concern. Pg 11 AFS '24

"As stated in the note, if the planned actions including ₦360 billion equity raise are successful, it will only address 11.4% and 8.4% of the Group's projected funding gap for the year ending 31 December 2025 and 2026 respectively. Management however has additional plans to address the 88.6% and 91.6% of the projected working capital deficiency for the two years through vendor financing until such a time that profit and healthy cash flows from profitable operations will be achieved. Management is also currently making efforts to sign a binding agreement with each prospective equity provider.

[b]The Directors/majority shareholders of Oando PLC had given a Letter of Guarantee to inject additional capital through Rights issue, and Public offer in addition to commitment to convene an Extraordinary General Meeting of the shareholders to address the urgent capital requirement [/b]in line with the Provision of Section 137 of Companies and Allied Matters Act. 2020 and the Directors fiduciary responsibilities and commitment to address the financial conditions of the Company.

However, there is material uncertainty about the success and timing of the additional plans including the bond and equity raises given that the projected funding gap continues to worsen over the years..."

HesInMe:
No need for English (I know you have sense, so think am: even consulting firms typically don't have zero cost of sales). Ellah's CEO said on the Arise interview that the large majority of sales came from sales of fresh fruit bunches.

What's your analysis now?

I admit I didn't listen to the interview prior to my comment, but my point still stands: it is possible. My argument hinges on possibility. Here is why:


This scenario, where a palm farm capitalizes the palm trees and the buyers bear the cost of harvesting the fruits. Let's break down;

1. Capitalization of Palm Trees (Bearer Plants):

Under accounting standards like IAS 16 (Property, Plant, and Equipment) and amendments to IAS 41 (Agriculture), mature palm trees are generally classified as bearer plants.

Bearer plants are treated like fixed assets (like machinery in a factory). Their costs (planting, development until maturity) are capitalized on the balance sheet, and then depreciated over their useful life. This depreciation is an operating expense, not a cost of sales.

The fruits themselves (Fresh Fruit Bunches - FFB) are the agricultural produce. Under IAS 41, at the point of harvest, the FFB are measured at their fair value less costs to sell. This fair value then generally becomes the cost of the inventory of FFB. (Normal Case)

2. Buyers Bearing Harvesting Costs:
This is the critical element. If the contract with the buyer explicitly states that:

The buyer is responsible for sending their own labor and equipment to the farm to harvest the palm fruits.

The buyer bears all direct costs associated with this harvesting (labor, fuel, transportation from the field to their trucks).

The farm essentially sells the "standing crop" or the "right to harvest" the fruits on its trees.

In this situation, the farm's revenue comes from the sale of the fruits, but the direct cost of harvesting those specific fruits is not incurred by the farm.


Therefore, the farm would have:
1. Revenue: From the sale of palm fruits.
2. Zero Cost of Sales (for direct harvesting): Because the direct costs of harvesting were borne by the buyer.
3. Operating Costs: The farm would still incur significant operating costs related to maintaining the plantation.

KarlTom:
Another Banger

https://doclib.ngxgroup.com/Financial_NewsDocs/44220_OANDO_PLC-OANDO_PLC__CORPORATE_ACTIONS_JUNE_2025.pdf

And the debt burden continues to balloon whilst crude oil price is falling casting serious doubt on the ability of the assets to repay these humongous debt.

Today’s pump is one of the strategies to be deployed by the top management to counter the negative audit opinion and sentiments about the ability of the entity to continue to exist as a going concern.

Anyway, my exit strategy remains intact and very solid.

To newbies on this forum, don’t fall for the merchants of evil trying so hard on this platform to promote this moribund stock if you’re not ready to lose your shirt.

Forget anything about investing your hard earned funds in this disguised “CIBEX”.

It’s the dog that wants to get lost that ignores the whistle of its owner.

Ire o.

Coolcash1:
And the debt burden continues to balloon whilst crude oil price is falling casting serious doubt on the ability of the assets to repay these humongous debt.

Today’s pump is one of the strategies to be deployed by the top management to counter the negative audit opinion and sentiments about the ability of the entity to continue to exist as a going concern.

Anyway, my exit strategy remains intact and very solid.

To newbies on this forum, don’t fall for the merchants of evil trying so hard on this platform to promote this moribund stock if you’re not ready to lose your shirt.

Forget anything about investing your hard earned funds in this disguised “CIBEX”.

It’s the dog that wants to get lost that ignores the whistle of its owner.

Ire o.

This one is now based on hate analysis not based on FA.
That was why you whr quick to discover auditors crying....you will soon be alright,lol

Make una judge the matter
They are insolvent you complained.
The paid down loan of #525 millions to #100millions in 5 yrs.which made the bank to extend fresh loan as part option to solve the working capital...you still complain
Na which colour be your own problem.
Why didn't you sell your holdings in the company today since you u want to protect new comers.
Pls do sell your holdings tomorrow so that they can have faith in u...what strategy do u require to sell bad stocks that is on bid

pluto09:
The auditing firm hates o and o too much

Is it hate?
Anyways every responsible and reputable auditing firm must protect themselves because the consequences are very severe if found wanting, knowingly or unknowingly!

Emir01:
Israel is a barbaric genocidal country, it doesn't started in October 2023. There countless of Israel genocide against Palestinians. A genocidal apartheid state called Israel is just US military base in the Middle East.

Stop it! Leave Israel alone and they'll leave you alone. The average Arab considers it a duty from Allah to kill Jews. Hamas in its charter explicitly states the destruction of the state of Israel as their goal. Hamas uses gazans as human shield. Why isn't Israel bombing west bank with same ferocity? October 7 was a terrorist attack that claimed over 1,000 Israeli lives, almost all being civilians who were killed brutally by Hamas operatives.
Israel will not give hamas an opportunity to implement their own "final solution"

Emir01:
Israel is a barbaric genocidal country, it doesn't started in October 2023. There countless of Israel genocide against Palestinians. A genocidal apartheid state called Israel is just US military base in the Middle East.

Please try elsewhere

Depending on their arrangement and the off-taker agreement, the buyer may purchase the bunches on the tree and harvest them at their own convenience once granted access to the plantation. This is a common practice in the agricultural sector, particularly for crops like plantains, bananas, oranges, and mangoes. I'm only considering the possibilities, as we cannot outright dismiss their claim as false without further evidence.

HesInMe:
Na Almighty God drop the FFB for Ellah like manna from heaven?

Exactly! You know how farms operate. You're not just a digital farmer/business person. You nailed it, I saw your response after I posted mine.

ositadima1:
I admit I didn't listen to the interview prior to my comment, but my point still stands: it is possible. My argument hinges on possibility. Here is why:


This scenario, where a palm farm capitalizes the palm trees and the buyers bear the cost of harvesting the fruits. Let's break down;

1. Capitalization of Palm Trees (Bearer Plants):

Under accounting standards like IAS 16 (Property, Plant, and Equipment) and amendments to IAS 41 (Agriculture), mature palm trees are generally classified as bearer plants.

Bearer plants are treated like fixed assets (like machinery in a factory). Their costs (planting, development until maturity) are capitalized on the balance sheet, and then depreciated over their useful life. This depreciation is an operating expense, not a cost of sales.

The fruits themselves (Fresh Fruit Bunches - FFB) are the agricultural produce. Under IAS 41, at the point of harvest, the FFB are measured at their fair value less costs to sell. This fair value then generally becomes the cost of the inventory of FFB. (Normal Case)

2. Buyers Bearing Harvesting Costs:
This is the critical element. If the contract with the buyer explicitly states that:

The buyer is responsible for sending their own labor and equipment to the farm to harvest the palm fruits.

The buyer bears all direct costs associated with this harvesting (labor, fuel, transportation from the field to their trucks).

The farm essentially sells the "standing crop" or the "right to harvest" the fruits on its trees.

In this situation, the farm's revenue comes from the sale of the fruits, but the direct cost of harvesting those specific fruits is not incurred by the farm.


Therefore, the farm would have:
1. Revenue: From the sale of palm fruits.
2. Zero Cost of Sales (for direct harvesting): Because the direct costs of harvesting were borne by the buyer.
3. Operating Costs: The farm would still incur significant operating costs related to maintaining the plantation.

Coolcash1:
And the debt burden continues to balloon whilst crude oil price is falling casting serious doubt on the ability of the assets to repay these humongous debt.

Today’s pump is one of the strategies to be deployed by the top management to counter the negative audit opinion and sentiments about the ability of the entity to continue to exist as a going concern.

Anyway, my exit strategy remains intact and very solid.

To newbies on this forum, don’t fall for the merchants of evil trying so hard on this platform to promote this moribund stock if you’re not ready to lose your shirt.

Forget anything about investing your hard earned funds in this disguised “CIBEX”.

It’s the dog that wants to get lost that ignores the whistle of its owner.

Ire o.

You are the only honest person on this oando saying the truth about the scam "oando". An audit firm sends strong warnings but some selfish people here are still defending a disaster waiting to happen.
Anyone that attacks me will be heavily attacked by me. Wale and oando will send many out of this market soon if care isn't taken.

Be wise