NewStats: 3,264,171 , 8,182,846 topics. Date: Tuesday, 10 June 2025 at 12:55 AM 583838

megawealth01:
Una dey wyne Wale for him game?

You seem to know Wale and Oando too well! And Wale seems to be taking advantage of his uncle, the useless and clueless president, to play this fast one.
How I wish I will have time to attend the AGM and ask them tough questions with other shareholders.

ositadima1:
Debts and Payables to Oando Group

Oando Group's financial position highlights a diverse range of debts, payables, and obligations owed to the company by various entities. These debts span across subsidiaries, related parties, and external obligations, revealing the intricate financial structure of the group. Below is a detailed analysis:

Key Debtors and Agreements

OES Integrated Services Limited:
As of December 31, 2023, this entity owes Oando a total of ₦12,485,094,736.70. The debt originates from a Convertible Note Purchase Agreement dated October 22, 2018, which was part of a Management Buyout arrangement.

OODP BVI:
OODP BVI owes $2.6 million to Oando Servco Nigeria Limited. This loan, issued on February 10, 2023, was intended for "general corporate purposes."


Trade and Other Receivables

As of June 30, 2024, Oando Group reports ₦1,096,288,198 in trade receivables. These represent outstanding payments from customers for goods or services already provided. This figure underscores a significant portion of the group’s short-term financial assets.

Obligations from Related Parties

Several related entities owe Oando Group varying amounts:

Churchill C-300 Finance Limited: ₦2,388,035,000

XRS II: ₦2,069,077,000

Oando E&P Holdings Limited: ₦7,039,434,000

Oando Equator Holdings: ₦12,782,860,000

Equator Exploration Ltd (BVI): ₦19,578,178,000

Calabar Power Ltd: ₦63,405,340,000

Oando Exploration & Production Limited: ₦33,709,104,000

Oando Petroleum and Natural Gas Limited: ₦67,454,000

Road Bits Limited: ₦392,705,000

XRS I: ₦16,746,000

Lakel Afrik Petroleum: ₦525,000

Bitumen Resources Limited: ₦520,026,000

Oando Resources Limited: ₦50,748,456,000


Impaired Receivables

Certain receivables have been classified as impaired, meaning their recovery is doubtful. For example, Oando Servco Nigeria Limited has impaired its receivables from Oando PLC. These impairments highlight potential financial risks and reduce the expected net receivables.

Other Financial Obligations

Guarantees:
Oando PLC has issued ₦733.3 billion in financial guarantees to third parties. These guarantees represent contingent liabilities, exposing Oando to risk if the guaranteed parties fail to meet their obligations.

Welldone..Though I didn't .

How is OandO E&P Holdings limited owing->7bn
and its subsidiary:

OandO E&P Limitd (I suppose) owing->33.7bn.

Shldnt the entire Holding owe more than the individual subsidiary?

I may be wrong sha. Maybe it doesn't work that way.

Give back ke? A chuck of those receivables are owed to Oando plc by companies he owns or controls. "Giving back" would be settling his gbese in full. Instead, what he seems to be planning is to give Oando plc (and us minority shareholders) equity worth less than the face value of the receivables he owes us. If that is the game, this is robbery by another name.

Look at the proposed resolution. There is a reason the majority shareholders are abstaining. They stand to benefit from the deal.

BabsO2:
To me it's a good sign Wale is giving something back and not buying us out
I celebrate the change in disposition and will not worry with conspiracy thinking of what not how not why. Waiting for the next AGM video.

mikeapollo:


You seem to know Wale and Oando too well! And Wale seems to be taking advantage of his uncle, the useless and clueless president, to play this fast one.
How I wish I will have time to attend the AGM and ask them tough questions with other shareholders.

Can a leopard change his skin?

ghm:


My Aradel landed quiety this evening,

Congratulations

HesInMe:
Oando shareholder here. There is nothing positive about this.

Unless ing has changed under Professor Wale, s receivables (AR) are sales that Oando made to customers and booked as revenue but hasn't collected cash. And there's a (bad) reason why not. It is not good when your customers have problems raising cash to pay you, "asset-rich" or not. And if you want to liquidate those ARs, which fool will stand ready to pay you face value for the privilege of being owed by those "asset-rich" debtors?

And please stop the special-dividend delusion. First, that AR has already been booked as revenue; it is not some new income. Second, a company as indebted as Oando is cannot be paying dividends. At minimum, that would probably violate their debt covenants. Creditors want their money first before you pay shareholders.

So why this weird proposal? I suspect, but do not know for sure, that it's got to do with concerns about recovery of the AR and the arcane, I-am-too-sharp-for-myself deals that Wale & Co have been doing behind the scenes. Instead of writing down the AR, which would negatively hit revenues, they're trying to shuffle the deck. Unless I'm missing something, that can't be good for minority shareholders. Perhaps I should've sold at N90.

Just in case you missed the first part of my post.

I started by asking what was huge in the announcement? Investors can not make informed decisions based on the info provided. Have a read of my questions again.

The part you quoted is "for benefit of doubt". What would you say if management already considered some of the questions posed and have answers to them? Striking a balance in your analysis especially when you don't have all the facts is a good practice.

I am in no way deluded about a special dividend being handed out. No cash payment is proposed. I have always maintained and even opined in the post you quoted that Oando should focus on paying off debts before anything else. However, management proposal could be a reward of some sort even though the ultimate goal is an ing abracadabra. Balance sheet makeover. My questions already addressed the reward........what is my gain if I can't monetise it? So please read my post very well. Pretty sure I covered most of the issues if not all based on the available information at our disposal.

As for the Asset rich entities, again we don't have enough information to make a determination. Hence the reason I started with IF, again condition for it to be considered a positive. I don't know if it is.

If you were wondering if it is possible for an asset rich entity to struggle with payment yes, it is. I recall quite a few gas-powered Gencos struggled with settling their debt to the Gas suppliers at a time because Discos were unable to pay them for energy supplied. The system was so broken the FG had to step in (possibly a problem they can't be absolved of in the first place). Not going into the details of what they did or if it resolved the issues. That's another long story.
Also, some JV partners in O&G are well known to struggle with meeting cash calls yet they own appreciable Working Interest in lucrative oil blocks. It could just be sheer mismanagement or inidividual management prioritisation of capital allocation may not align with JV interests. Look up NAOC vs Oando debt case that only got resolved as part of the acquisition.

Summarily, read my post again. I tried to be as balanced as possible. I didn't go off maybes. My thoughts are based on announcements released by the company and annual reports.

Omooloriredade:


Just in case you missed the first part of my post.

I started by asking what was huge in the announcement? Investors can not make informed decisions based on the info provided. Have a read of my questions again.

The part you quoted is "for benefit of doubt". What would you say if management already considered some of the questions posed and have answers to them? Striking a balance in your analysis especially when you don't have all the facts is a good practice.

I am in no way deluded about a special dividend being handed out. No cash payment is proposed. I have always maintained and even opined in the post you quoted that Oando should focus on paying off debts before anything else. However, management proposal could be a reward of some sort even though the ultimate goal is an ing abracadabra. Balance sheet makeover. My questions already addressed the reward........what is my gain if I can't monetise it? So please read my post very well. Pretty sure I covered most of the issues if not all based on the available information at our disposal.

As for the Asset rich entities, again we don't have enough information to make a determination. Hence the reason I started with IF, again condition for it to be considered a positive. I don't know if it is.

If you were wondering if it is possible for an asset rich entity to struggle with payment yes, it is. I recall quite a few gas-powered Gencos struggled with settling their debt to the Gas suppliers at a time because Discos were unable to pay them for energy supplied. The system was so broken the FG had to step in (possibly a problem they can be absolved of in the first place). Not going into the details of what they did or if it resolved the issues. That's another long story.
Also, some JV partners in O&G are well known to struggle with meeting cash calls yet they own appreciable Working Interest in lucrative oil blocks. It could just be sheer mismanagement or inidividual management prioritisation of capital allocation may not align with JV interests. Look up NAOC vs Oando debt case that only got resolved as part of the acquisition.

Summarily, read my post again. I tried to be as balanced as possible. I didn't go off maybes. My thoughts are based on announcements released by the company and annual reports.

mikeapollo:


I don't think the NAOC acquisition will play a huge role in Oando's results for Q3 2024. The deal was finalized towards the end of August, so September 2024 is the only full month that will reflect in Q3 2024.
Q4 2024 should provide a better view of the impact from NAOC acquisition.

No it doesn't work that way. While preparing report for Q3, all business transactions for that quarter will be reported. Also, note that Oando takes over the assets and liabilities of NAOC so results will be consolidated eventually. If I buy your business, I buy everything you own including your balances, debt or liabilities, everything except anything that was already excluded in the negotiations.

Next year, after the consolidation, Q1, Q2 that were standalone in 2024 will be restated in 2025 quarterly reports.

Disclaimer - I no be ant o but this is my understanding of how things work.

Final thoughts on this Oando announcement. As far Oando is concerned, this debt for equity swap is no biggie. They have been doing it for years except you have not been reading their annual reports.

The only thing that is different now is the pro rata allocation of the shares of these UNKNOWN entities to existing Oando shareholders.

@Mike please note no where did the announcement mention a cash consideration.

The shares in the entity will be distributed according to your percentage holding in Oando shares (in layman's otherwise look up pro rata).

Ideally, an email or letter should be sent to all existing shareholders prior to the AGM. That's the only sensible thing to do. How do I vote or instruct my proxy to vote if I'm not there and you did not already provide details?

mikeapollo:


You seem to know Wale and Oando too well! And Wale seems to be taking advantage of his uncle, the useless and clueless president, to play this fast one.
How I wish I will have time to attend the AGM and ask them tough questions with other shareholders.

The AGM is a yes man thing as the shareholders association in Nigeria seems not to be working to put these companies in check or on their toes

Omooloriredade:


No it doesn't work that way. While preparing report for Q3, all business transactions for that quarter will be reported. Also, note that Oando takes over the assets and liabilities of NAOC so results will be consolidated eventually. If I buy your business, I buy everything you own including your balances, debt or liabilities, everything except anything that was already excluded in the negotiations.

Next year, after the consolidation, Q1, Q2 that were standalone in 2024 will be restated in 2025 quarterly reports.

Disclaimer - I no be ant o but this is my understanding of how things work.

An entity can only recognise revenues coming from what actually belongs to it. NAOC officially became part of Oando around third or fourth week in August, 2024, hence they can only reflect the revenues from that acquisition date up to 30 Sep in their Q3 2024 results.

mikeapollo:

An entity can only recognise revenues coming from what actually belongs to it. NAOC officially became part of Oando around third or fourth week in August, 2024, hence they can only reflect the revenues from that acquisition date up to 30 Sep in their Q3 2024 results.

I see. Makes sense. Not contesting your position.

I'm not making sense any longer sef so make I rest small.

So many red flags

emmanuelewumi:
So many red flags

Red flags where?

We are expecting unbundling joor. Abeg no pour sand sand for our garri

Will a leopard change his skin? Lawyers handling oil related business eh

emmanuelewumi:
So many red flags

Lets change that red flag to white because we have surrendered to the whims and caprices of Oga Wale. Nobody knows what to expect at the AGM. I really don't know why things can't be made as simple as possible, without ambiguous thesis.

Looks like we are back where we started

Omooloriredade:

Ideally, an email or letter should be sent to all existing shareholders prior to the AGM. That's the only sensible thing to do. How do I vote or instruct my proxy to vote if I'm not there and you did not already provide details?

Raider76:
Looks like we are back where we started

Maybe more information will be released/mailed/emailed to shareholders next week?? Not making excuses for Oando o. Just trying to reason the matter.

jonnysessy:




Lets change that red flag to white because we have surrendered to the whims and caprices of Oga Wale. Nobody knows what to expect at the AGM. I really don't know why things can't be made as simple as possible, without ambiguous thesis.

You dey wyne? Don't offend the law

emmanuelewumi:
So many red flags

Oando is definitely not a Warren Buffet stock. But we JIJO people do just fine.

Ocean and Oil
Olawale and Omamofe
Over and Out
...

Raider76:


Oando is definitely not a Warren Buffet stock. But we JIJO people do just fine.

Are you a gamer?

The current reality of taxation in the UK

So, the summary (I wanted to say conclusion, but more may still come ) of all the grammatical gymnastics, analyses and Paralysis (in Mcy's voice) is that we all need more info for clarity and none of the postulations here can be adjudged accurate.

Hopefully, the company will take steps to clear shareholders' confusion.

Omooloriredade:
Final thoughts on this Oando announcement. As far Oando is concerned, this debt for equity swap is no biggie. They have been doing it for years except you have not been reading their annual reports.



Ideally, an email or letter should be sent to all existing shareholders prior to the AGM. That's the only sensible thing to do. How do I vote or instruct my proxy to vote if I'm not there and you did not already provide details?

The caption is incorrect.

The higher you climb, the more you pay.

The cleaner earning £25,000 p.a. is the one working harder not the manager/executive on £300,000 p.a.

megawealth01:
The current reality of taxation in the UK

KarlTom:
The caption is incorrect.

The higher you climb, the more you pay.

The cleaner earning £25,000 p.a. is the one working harder not the manager/executive on £300,000 p.a.

No wahala

megawealth01:


Are you a gamer?

Yuuup

GeeKudi:
So, the summary (I wanted to say conclusion, but more may still come ) of all the grammatical gymnastics, analyses and Paralysis (in Mcy's voice) is that we all need more info for clarity and none of the postulations here can be adjudged accurate.

Hopefully, the company will take steps to clear shareholders' confusion.

Seems you didn't follow up the last AGM. Wale played everyone in that AGM. The game is rugged in the game

Raider76:


Yuuup

Then you will be counted worthy to dine with WALE

megawealth01:


Then you will be counted worthy to dine with WALE

Looking forward to it

Pa Emma, you yourself stated that we can make money from stocks without fundamentals, when you used the state of matter metaphor. I dont think anyone buying Oando is looking for fundamentals.

emmanuelewumi:
So many red flags

You don enter

Sunrisepebble:
Pa Emma, you yourself stated that we can make money from stocks without fundamentals, when you used the state of matter metaphor. I dont think anyone buying Oando is looking for fundamentals.

Dingg