Oando Plc Pledges to Ramp Up Oil Production Following $78.71 Billion Loss in 2022


Oando Plc has announced its commitment to enhancing oil production and increasing cash inflows as part of its strategy to regain profitability. The Group Chief Executive, Wale Tinubu, made this assertion following the release of the company’s 2022 Annual Reports Consolidated and separate financial statements.

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Tinubu acknowledged the challenges faced by the company in 2022, citing heightened militancy and pipeline vandalism in the Niger Delta region as significant factors contributing to a decline in crude production volumes. Additionally, he highlighted increased net interest expenses due to rising interest rates on major facilities. To address these issues, Oando Plc has implemented measures to bolster production and cash inflows, including collaborating with partners to enhance security and exploring growth opportunities.

In March 2023, Oando Plc received an offer from its core shareholder to acquire shares from minority shareholders and delist from the Nigerian Exchange Limited and the Johannesburg Stock Exchange Limited.

Despite revenue growth of 147.89% to N1.99 trillion in 2022, the company reported a net loss of N78.71 billion, attributed to high costs and finance expenses. The directors did not propose a dividend for the year.

The independent auditor’s report expressed concerns about Oando’s ability to continue as a going concern due to its negative asset position and funding shortfall. Management plans to refinance debts and address funding gaps, but uncertainty remains regarding the availability of necessary funding.

While some shareholders expressed dissatisfaction with the delisting plan, Oando Plc remains focused on its objectives to enhance profitability and operational efficiency.

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Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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