Oando Plc has received shareholders’ approval to raise additional capital of up to N500 billion through the issuance of 10 billion new ordinary shares.
This move is part of the company’s broader restructuring and financing program aimed at strengthening its balance sheet and supporting growth plans. The capital raise can be done through various methods, including public offerings, private placements, debt-to-equity conversions, and rights issues. The shareholders gave their approval at the company’s 46th Annual General Meeting (AGM).
Also, the shareholders approved the board to enter into capital restructuring agreements with key stakeholders and lenders and convert up to $300 million out of the Company’s existing Reserves-Based Lending (RBL) debt into equity.
They authorised the Board to establish a multi-instrument issuance programme in an amount up to $1.500 billion or its naira equivalent and to proceed with subsequent issuances of bonds, certificates, instruments and/or other securities under the programme.
Speaking at the meeting, chairman of Oando, Ademola Akinrele said, “In 2024, we maintained focus on performance delivery across all our business segments. In trading, while overall volumes declined due to macroeconomic headwinds and reduced domestic demand, we strengthened our operational foundation by expanding financing lines, enhancing risk management, and improving efficiency across our crude and refined product value chains.”
Looking ahead, he stated that, “Oando enters 2025 with strengthened assets, clearer strategic focus, and renewed operational momentum. A key priority is to maximise production and value from the NAOC-acquired assets, leveraging our operatorship position to drive efficiency and increase output.
“We are also committed to returning to a position where we can deliver regular dividends to shareholders, with financial discipline, cost control, and capital efficiency underpinning our decision making.”
Group chief executive of Oando, Adewale Tinubu added that, “despite a challenging macroeconomic backdrop, Oando delivered a strong operational and financial performance in 2024. Our focus was on executing our strategy of expanding our upstream and trading footprint, optimizing our portfolio, and enhancing operational efficiency, efforts that contributed to significant year-on-year gains.”
He explained that, “our full year 2024 revenue increased by 44 per cent to N4.1 trillion, up from N2.9 trillion in 2023. This was driven by increased production volumes following our successful acquisition of NAOC’s assets as well as a favourable exchange rate translation of our dollar denominated earnings.
“Our profit-after-tax surged to N220 billion, representing a 267 per cent increase over the N60.3 billion reported in 2023. This marks our second consecutive profitable year and underscores the resilience of our business model, despite one-off integration and finance costs.”
