Goddy Egene
The Group Chief Executive Officer of Oando Plc, Mr. Wale Tinubu has unveiled various strategies expected to boost the company’s future performance and deliver returns to investors. Oando had a rough patch, recording losses in 2014 and 2015. However, it bounced back into profitability for the year ended December 31, 2016.
Speaking at company’s ‘Fact behind the figures’ presentation at the Nigerian Stock Exchange (NSE) last Thursday in Lagos, Tinubu unveiled the strategic initiatives being taken currently and future plans up to 2020 that would place the company in better stead to deliver improved performance to all stakeholders.
The share price of Oando Plc surged to a two-year high last week, rising by 20.2 per cent as investors reacted to positive developments in the company and the successful completion earlier strategic initiatives.
One of such positive news was the company’s agreement with the Federal Government of Nigeria to repair, operate and maintain the brown-field Port Harcourt Refinery in Rivers State.
Disclosing some of other initiatives to the capital market community, Tinubu said in the midstream business (power and gas) of the company, the current initiative is to grow aggregate gas pipeline utilisation portfolio to an average of 70mmscfd, commence operation of gas trading platform, design and commence implementation of appropriate financing plan for Oando Gas & Power (OGP).
He added in 2018, the company would grow aggregate gas pipeline utilisation portfolio to an average of 100mmscf/day.
“We will complete the development and commence operation of at least 20mmscfd Mini LNG Business. Complete development and commence operation of 50MW embedded/grid power generation, commence operation of Floating Storage & Regasification Units (FSRU) facility,†he said.
In the downstream and trading business, Tinubu said that Oando is currently diversifying markets and deepening relationships with refineries in order to increase West-Africa presence.
“In 2018, the company will expand operations across Africa, specifically to Southern African Development Community (SADC) and East Africa Community(EAC) while 2019 to 2020 will see the company focus of assets acquisitions to drive forward expansion into other major African markets,†he stresses..
Explaining some of past initiatives, Tinubu noted that the company deleveraged its balance sheet through the divestment of its upstream services company Oando Energy Services and embarked on the expansion of its retail and gas footprint through a strategic partnership with Helios Investment Partners and Vitol Group to recapitalise its downstream business for $210million and the $115.8 equity buy-in of its Gas and Power business by Helios Investment Partners.
He also noted that Oando acquired a N108 billion medium-term-loan with 11 Nigerian banks; this medium term five-year consolidated facility, with a three- year moratorium on principal, enabled the overall restructure of the group’s obligations, which has reduced its borrowings significantly by 29 per cent to N225.9 billion in the first quarter of 2017 from N355.4 billion.
