07 February 2014, Lagos – Oando Plc will more than double its pre-tax profit to some N100 billion as the integrated energy group looks to unlock immense potential of its acquisition of ConocoPhillips (COP)’s Nigerian businesses.
Speaking during a visit to the Nigerian Stock Exchange (NSE) yesterday, group chief executive, Oando Plc, Mr. Wale Tinubu, said the conclusion of the acquisition of COP, Oando’s earnings before interest, taxes, depreciation and amortisation (EBITDA) will rise from the current annual average of N45 billion to N100 billion.
He said the increase in earnings would also lead to improvement in dividend payout to shareholders going forward.
According to him, Oando has technically concluded the momentous acquisition having pooled the final financial considerations to complete the $1.55 billion agreement with COP.
“All we require now is the consent of the minister, which is the legal requirement. The transaction will not be fully consummated until the minister consent is received,” Tinubu said.
He assured the stockbrokers that ministerial consent is a near certainty, noting that the final approval will be granted very soon.
He reiterated that the acquisition is a game changer for Oando as it will immediately position the company as the largest indigenous oil producer in Nigeria. Oando through OER currently produces 4,500 barrels of crude oil per day from two producing fields, with this acquisition it will start producing circa 50,000 barrels per day from six producing fields.
– The Nation