Oando reduces debt by 39.4 per cent in 2016 Q1
Oando Plc, Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange has disclosed that its debt profile has been substantially reduced from over N500 billion in 2014 to N303 billion in Q1,2016 .
The Group Chief Executive Officer, Oando, Mr. Wale Tinubu who made disclosure said the company was targeting to bring it further down to N100 billion by September this year.
Presenting the company’s Fact Behind the Figure at the Nigeria Stock Exchange (NSE) in Lagos, Tinubu disclosed that the company had successfully restructured its existing debt through a N94.6bn medium-term note with a local consortium with lower interest rates and a renewed five-year tenor.
He opined that the company’s Q1 result was welcomed with disappointment by investors and shareholders alike, following Oando’s dismal of 2015 financial performance which was significantly impacted by impairments and foreign exchange pressures.
He however said that the company would optimize its balance sheet by focusing on aggressive debt reduction and recapitalization even as he assured company’s drive to ensure profitability going forward.
“This first quarter of 2016 demonstrates our dedication to return our business to profitability by the end of the year. We have implemented constructive corporate initiatives, which are driving forces for our business in this new global reality of economic restraint and lower oil prices in our industry.
“The successful and ongoing implementation of these initiatives reiterates our strategy of growth, deliverables and a return to profitability by the end of 2016.
As a group, we have placed our focus on growing our upstream higher margined business, while still holding fundamental interests in the midstream and downstream sectors. We look forward to a rewarding year, where we will solidify our aspirations and return to profitability”, he assured.
As oil prices gradually increased, Oando said it commenced 2016 with a reinvigorated strategy hinged on key corporate initiatives to drive the company back to profitability and ensure fiscal efficacy