A Review of the Nigerian Energy Industry

Oando pays N5.4bn dividend to shareholders

5 September 2011, Sweetcrude, Lagos – Oando Plc, the integrated energy group listed on the Nigerian Stock Exchange and Johannesburg Stock Exchange, has paid out a total of N5.4 billion as dividend to shareholders as at August 31, 2011.

Oando’s head of corporate communications, Mr Meka Olowola, who confirmed this, said the payment represented N3 for an ordinary share of 50 kobo totalling 1,810,169,256 shares held as at April 29, 2011.

The company’s shareholders had on June, 30 2011at its 34th annual general meeting in Lagos approved the board’s proposal for the dividend. They also approved the board proposal of one bonus share for two ordinary shares held by shareholders. The 2010 dividend payout increased by 100 per cent compared to N2.7billion paid the year prior, inclusive of an award of ‘one for four’ bonus shares.

The group’s financial result for last year showed that turnover increased from N336.9 billion in 2009 to N378.925 billion in 2010, while Profit before Tax (PBT) stood at N24.318 billion compared to N13.512 billion in 2009. Oando is poised to surpass this performance in 2011 as half-year turnover grew by 55 per cent to N267.8 billion from N172.9 billion in 2010. Profit-Before-Tax surged by 33 per cent to N12.8 billion in relation to N9.6 billion posted in 2010, while Profit-After-Tax rose by 25 per cent to N6.7 billion compared to N5.3 billion.

Shareholders said the dividend payout was a welcome development, commending Oando for keeping to its promise of delivering value and paying dividend year on year. Also, applauded was the bonus awarded to shareholders for the second year.

Over the past five years, Oando has maintained an exemplary dividend payout.

Loyal shareholders of the company may be in for another bumper reward for the next financial year as at least two of the company’s SBUs will benefit from changing regulatory frame work, such as local content act and PIB in favour of local energy companies.

The gas and power division has consistently shown growth increase with foray into power and natural gas infrastructure. Oando Marketing, the company’s long term cash cow continues to seek new game changing offering in the LPG business while sustaining market leadership in other fuel retailing categories.

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