Oando Plc - Oando Plc Announces Earnings Guidance For H1 2016Release Date: 18/07/2016 15:43:00 Code(s): OAO
(Incorporated in Nigeria and registered as an external company in South Africa)
Registration number: RC 6474
(External company registration number: 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: OANDO
Oando PLC Announces Earnings Guidance for H1 2016
Lagos, Nigeria ? Oando PLC (referred to as ?Oando? or the ?Group?), Nigeria?s leading
indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange,
expects to report materially lower earnings for the second quarter of 2016 due to the impact of
the Naira devaluation against the US dollar (?USD?), resulting in unrealized foreign exchange
losses. This announcement is based on the unaudited financial statements for the period ended
30th June 2016.
The impact of the Naira devaluation by the Central Bank of Nigeria (?CBN?) is expected to
amount to an unrealized foreign exchange loss arising from USD denominated liabilities,
outstanding bank trade facilities as well as vendor payables. As at the time of the devaluation
the company had USD denominated borrowings of ~$261 Million in our Naira dominated
earnings businesses, consisting of ~$68 Million in core loans, $89 Million in bank trade facilities,
~$83 Million in Asset Financing and $21 Million in other payables. A circa 40% devaluation in
the value of the Naira against the US dollar from the bank rate of N199.00:$1.00 to
N280.00:$1.00, has effectively resulted in these significant foreign exchange losses which we
have prudently booked into our financial statements.
Despite the challenging operating landscape in 2016, we reiterate our focus of returning the
Group to profitability by growing our dollar earning higher margin upstream and export trading
businesses, which will not be impacted by the volatility of Foreign Exchange rates to the Naira.
We remain confident in our diversified business model and the long-term prospects for growth in
Nigeria and beyond.
Further details of the Group?s financial performance will be disclosed when the Half Year
unaudited financial results are announced and during the subsequent results conference call.
For further information, please contact:
Head, Investor Relations
2, Ajose Adeogun Street,
Tel: +234 (1) 2601290-9, Ext 6396
18 July 2016
Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)
Date: 18/07/2016 03:43:00 Supplied by www.sharenet.co.za
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