Oando loses N7.62bn in nine-month

Semiu Salami
Semiu Salami
Oando Plc

Nigerian energy firm, Oando Plc said on Friday that its nine month pre-tax profit fell 44 per cent to N9.78 billion ($61.44 million), compared with N17.40 billion in the same period a year ago.

The oil marketing and exploration company also said turnover declined to N386.25 billion during the nine months to September 30, from N487.76 billion last year.

Oando, whose core business is importing petroleum products, early this week announced the acquisition of ConocoPhillips, a foreign oil company exploring and producing oil and gas in Nigeria through its subsidiary, Oando Energy Resources (OER).

According to a statement signed by Kevin Johnson-Azuara, OER said that ConocoPhillips (COP) has received initial deposit of $435 million (N67.73 bln) to acquire the assets of COP in an acquisition deal said to worth $1.22 billion (N189.95bln).

To conclude the deal, OER has also received commitment letters valued at 815 million dollars of bank credit facilities.

It said that $465 million was drawn from reserve based lending facility, internationally placed and led by BNP Paribas, Standard Bank, and Standard Chartered Bank.

COP said that additional $350 million was a secured loan jointly arranged locally in Nigeria by FBN Capital and FCMB Capital Markets.

Pade Durotoye, Chief Executive Officer of Oando Energy Resources, was quoted as saying that “maximising value for our shareholders is our ultimate goal”.

“Through optimal financing, we remain determined to conclude the COP acquisition as soon as possible and increase our market share and infrastructure within the sector.

“Once the deal is concluded, OER’s daily production will substantially increase from 4,500 bpd to 45,000 bpd and will place the company as the largest indigenous producer behind the International Oil Companies.

“The acquisition also paves the way for other indigenous companies to address operational boundaries within Nigeria and position themselves as global players, thus providing unprecedented opportunities for local and international investors,” he said” is trying to close a deal to buy ConocoPhillips’ Nigerian crude oil fields in a $1.79 billion deal announced last year.

“It has issued shares to help finance it and received commitments worth $815 million from banks for loans towards it,” it said.

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