Oando opens rights issue at N22

Oando Plc has commenced a rights issue on the basis of one new share for every four ordinary shares held as of July 25, 2014.

The Nigerian Stock Exchange confirmed in its weekly report that the energy giant, which is listed on the Exchange and the Johannesburg Stock Exchange, had notified it of the rights issue.

According to the Exchange, the price of the issue, which opens on Monday (today, is N22. It added that the offer will close on December 19.

Meanhile, the Exchange said it had on Tuesday last week, admitted 215.6 million shares of 50 kobo each belonging to Oando for trading on the Exchange.

'This arose as a result of the shares conversion of N2,587,500,000 notes, thus increasing the issued quantity of the company's share to 9,084,685,738,' the Exchange said.

The group's unaudited results for the nine months to September 30, 2014 showed that its profit after tax rose by 76 per cent to N10.7bn from the N6.1bn it realised in the corresponding period of last year.

The results also showed that the company's gross profit rose by 70 per cent year-on-year to N76.6bn as against N46.7bn in the corresponding period of 2013, while its profit before tax at N10.2bn was four per cent higher than the N9.8bn it posted in the same period last year.

A statement from the company, following the release of the result had quoted its Group Chief Executive Officer, Mr. Wale Tinubu, as saying, that the group was pleased with the performance, especially as it was achieved despite falling crude prices.

He said, 'The group is making solid progress in achieving a more robust financial performance despite the current industry trend and 30 per cent decline in global crude prices year to date. Our conservative nature ensures that we apply risk mitigating processes, by implementing hedging tools in the upstream on our future crude production, $100/barrel for three years.'

Tinubu explained that the group also fixed gas prices through long-term contracts with its customers in the midstream sector and had taken advantage of the lower prices in landing its refined imported products, resulting in improved pricing efficiencies.

'As we wrap up 2014, we look forward to a full quarter's production contribution from our newly acquired NAOC Joint Venture assets, which have steadily increased our current output above 50kboepd, as well as achieving diversity in earnings via our increased upstream contribution,' he added. Agency report