Oando Plc Secures Shareholders' Approval for $5.5 Billion Capital Raise and Restructuring Initiatives

Strategic Insights -

Oando Plc, a leading energy conglomerate, has secured shareholders' approval to raise an additional capital of up to N500 billion ($1.5 billion), equivalent to 10 billion new ordinary shares, as part of its restructuring and financing program. The move aims to strengthen the company's balance sheet and support its growth plans. Shareholders approved the plans at the company's 46th Annual General Meeting, also authorizing the Board to enter into capital restructuring agreements with key stakeholders and lenders.

Key Takeaways:

  • Oando Plc's shareholders have approved the issuance of up to 10 billion new ordinary shares to raise an additional capital of up to N500 billion ($1.5 billion).
  • The company plans to utilize various methods to raise capital, including public offerings, private placements, debt-to-equity conversions, and rights issues.
  • Shareholders have also authorized the Board to convert up to $300 million of the company's existing Reserves-Based Lending (RBL) debt into equity.
  • The company aims to strengthen its balance sheet and support its growth plans, particularly in the upstream and trading segments.
  • Oando Plc delivered a strong operational and financial performance in 2024, with revenue increasing by 44% to N4.1 trillion and profit-after-tax surging to N220 billion.
  • The company's successful acquisition of NAOC's assets and favorable exchange rate translation contributed to the significant year-on-year gains.
  • Oando Plc is committed to maximizing production and value from the NAOC-acquired assets and returning to a position where it can deliver regular dividends to shareholders.

Statistics:

  • N500 billion: The maximum amount of additional capital Oando Plc is authorized to raise through new ordinary shares.
  • 10 billion: The number of new ordinary shares that will be issued to raise the additional capital.
  • $1.5 billion: The maximum amount of additional capital that can be raised through various methods, equivalent to the N500 billion.
  • $300 million: The amount of Reserves-Based Lending (RBL) debt that can be converted into equity under the approved capital restructuring agreements.
  • 44%: The increase in revenue to N4.1 trillion in 2024, compared to N2.9 trillion in 2023.
  • N220 billion: The profit-after-tax of Oando Plc in 2024, representing a 267% increase over the N60.3 billion reported in 2023.

Sources:

  • Ademola Akinrele, Chairman of Oando Plc.
  • Adewale Tinubu, Group Chief Executive of Oando Plc.
  • Oando Plc's 46th Annual General Meeting (AGM).