₦airaland Forum

pluto09:
eps was calculated using 8.152b instead of 12b.
Any idea how they arrived at this?
What is their output of crude oil (boe) now?

pluto09:
K

He might be positioning himself to take over GTB but I don't think a merger between FIRSTHOLDCO and GTB will fly.

iskalamong:
They repurchased treasury shares. This reduced their shares outstanding.

Iskalamong!

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iskalamong:
Please see the message below:



Cheers!

Iskalamong!


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iskalamong:
Please see the message below:



Cheers!

Iskalamong!

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pluto09:
You mean the company paid 325b for 4.29b of its own shares?

pluto09:
You mean the company paid 325b for 4.29b of its own shares?

mikeapollo:
But the repurchased shares are still meant to be redistributed to shareholders so it should not reduce the outstanding shares, unless they want to give out cash instead of shares or they are deliberating delaying the redistribution to make the EPS look better
Infact 1.2b if the 4.18b shares have been distributed already.

ositadima1:
Remember the agreement between Oando and Ocean and Oil Development Partners (OODP). As part of that arrangement, OODP returned roughly 4 billion shares in exchange for outstanding debt. Those shares are now being re-circulated to minority shareholders in tranches. As a result, based on the number of shares that have so far been redistributed, only about 8 billion shares are currently active, while the remainder are held as treasury shares and therefore excluded from the EPS calculation until they are subsequently reissued.

Regarding production, output appears to be in the range of 30,000–40,000 barrels of oil equivalent per day (boe/d) based on publicly available information.

Isiahnaija01:
Thanks for setting this up. We really need accurate signals in this current market climate.
My main worry right now is inflation eating up dividends before they even land. I’m constantly checking the black-market FX rates here https://abokidollar.com/black-market-rate to see if my stock gains are actually 'real' gains in dollar terms or if I’m just breaking even.

Do you have any picks specifically for companies with low FX exposure?

Let’s keep this thread active.

pluto09:
Shouldn't the exchange of share for debt lead to improvement in equity.
Why should this result in extra burden for shareholders with a worsening negative equity position?

ositadima1:
Total shares were about 12 billion. Following agreements with a major shareholder, roughly 4 billion shares were returned to the company, likely in exchange for outstanding debt owed to Oando at the group level. My understanding is that the arrangement involved surrendering an equivalent equity stake to settle debts that were already considered impaired.

Under this structure, those shares are being redistributed to minority shareholders in stages, effectively converting the debt into equity. Until all of these shares are fully reissued, EPS is calculated based on the active shares in circulation, not the total issued share capital.

Does this make sense? It’s giving me a headache too. lol

floval:
Guys, I’m considering investing ₦2 million in the short term, and I’m currently looking at Access Bank and Oando. What would you suggest? Your responses and recommendations would be greatly appreciated.

mikeapollo:
Yes, the company paid off the equity of some shareholders (who took the company to court) and retrieved the shares from them

emmanuelewumi:
I will write about the negative vibes others can write about the positive vibes of Oando


Shareholders fund is negative N553 billion

Debt is N3 Trillion

Finance cost is N59 billion

Working Capital is negative N3.2 Trillion

Net operating cash flow is negative N147 billion

Free Cash Flow is negative N259 billion.

ositadima1:
Remember the agreement between Oando and Ocean and Oil Development Partners (OODP). As part of that arrangement, OODP returned roughly 4 billion shares in exchange for outstanding debt. Those shares are now being re-circulated to minority shareholders in tranches. As a result, based on the number of shares that have so far been redistributed, only about 8 billion shares are currently active, while the remainder are held as treasury shares and therefore excluded from the EPS calculation until they are subsequently reissued.

Regarding production, output appears to be in the range of 30,000–40,000 barrels of oil equivalent per day (boe/d) based on publicly available information.

mikeapollo:
Oando does not need to convert all the N3 trillion to equity.
But they need to convert some and also raise enough funds to drastically pay off the interest- bearing commercial loans in order to eliminate or reduce the Finance costs. Once that is fine, equity and profit would be boosted significantly.

iskalamong:
I suspect they want to make the EPS look better. This will make the share price look cheap. It will also justify subsequent rallies on the stock.

Imagine a stock with an EPS of N30 trading at N40. That’s the story they are painting.

Iskalamong!

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iskalamong:
I suspect they want to make the EPS look better. This will make the share price look cheap. It will also justify subsequent rallies on the stock.

Imagine a stock with an EPS of N30 trading at N40. That’s the story they are painting.

Iskalamong!
This is a case of Oyinbo Man na me get National Airport!

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iskalamong:
I suspect they want to make the EPS look better. This will make the share price look cheap. It will also justify subsequent rallies on the stock.

Imagine a stock with an EPS of N30 trading at N40. That’s the story they are painting.

Iskalamong!

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mikeapollo:
But the repurchased shares are still meant to be redistributed to shareholders so it should not reduce the outstanding shares (technically speaking), unless they want to give out cash instead of shares or they are deliberating delaying the redistribution to make the EPS look better
Infact 1.2b of the 4.18b shares have been redistributed already so it cannot be 8billion shares

essentialone:
In Account metrics, what is the implications of this?

PuristForest:
Leave Access and Oando, Buy univinsure

mikeapollo:
Yes, the company paid off the equity of some shareholders (who took the company to court) and retrieved the shares from them

ositadima1:
Total shares were about 12 billion. Following agreements with a major shareholder, roughly 4 billion shares were returned to the company, likely in exchange for outstanding debt owed to Oando at the group level. My understanding is that the arrangement involved surrendering an equivalent equity stake to settle debts that were already considered impaired.

Under this structure, those shares are being redistributed to minority shareholders in stages, effectively converting the debt into equity. Until all of these shares are fully reissued, EPS is calculated based on the active shares in circulation, not the total issued share capital.

Does this make sense? It’s giving me a headache too. lol

eziokwunwoko:
Why univinsure? TA or FA analysis based decision

aj8:
Custodian should do above 60.00 but buy below 40 . Estimate 6 months.

Kaczynski:
Dude needs to fire his security advisor . His investment strategies are not so good.

faoogoke:
It seem Otedola is acquiring more FBN shares in anticipation of seeing through merger with GTB.

Still speculative though.

PropTrader:
Well, the figures are in and RoyalExchage underperformed. Although it chose to report only year to date figures, if you compare the 12 months PBT of N924m to the nine months figure, you wil deduce that it made a loss of N561 in Q4 2025 which is no where near the N1 billion you projected.

I am not sure of what will push prices up in the short run the way you expect as the NIIRA act effect seems to have cooled and the uptrend in NGX also seems to be selective for now.

With current shareholder funds of only N7.6billion, the company will need to look for new capital within the next 5 months to re-capitalise the following subsidiaries

- Royal Exchange General Insurance: Minimum capital specified by NIIRA is 2025 N15 billion
- Royal Exchange Prudential Life: minimum capital specified by NIIRA is 2025 N10 billion
- Royal Exchange Microfinance Bank: CBN minimum capital for different categories of MFBs range from N50m to N5 billion

This company is prime candidate for merger, or acquisition or massive RI/PO/PP to raise at least N17 billion before July 31, 2025.