NewStats: 3,259,489 , 8,170,304 topics. Date: Sunday, 25 May 2025 at 09:52 AM 22xh

chimex38:

Good Observation..
But on further checks according to the line item, it's more likely a tax-credit rather than a tax-expense, hence not bracketed and rightly added.

In the same line item, they got a tax credit from their exploration activity of ₦27.99bn and it was added. That's the source of the observation you rightly highlighted.

I could also be wrong.
Cc: Youngzedd

Thanks for the clarification.

Financial Analysis of Oando PLC for the Year Ended 31 December 2024


1. Profitability
Revenue & Profitability:

The Group reported a profit of N65.5 billion for the 12 months ended December 2024, driven by the Exploration & Production (E&P) segment (N141.9 billion profit).

However, Q3 2024 saw a loss of N10.8 billion, primarily due to high istrative expenses (N402.7 billion annually) and finance costs (N232.1 billion).

The Supply & Trading segment improved significantly, turning a profit of N61.1 billion in 2024 compared to a loss in 2023.

2. Financial Position
Assets:

Total assets grew by 109% (N3.9 trillion in 2024 vs. N1.9 trillion in 2023), driven by acquisitions (e.g., NAOC) and revaluation of property, plant, and equipment (N2.04 trillion).

Intangible assets (e.g., goodwill, exploration assets) surged to N1.27 trillion, reflecting acquisitions and ongoing upstream investments.

Liabilities:

Total borrowings increased to N2.76 trillion (2024), with significant short-term debt (N1.05 trillion).

Lease liabilities (N8.99 billion) and decommissioning provisions (N93.7 billion) add to long-term obligations.

3. Cash Flow
Operating Activities: Net cash used in operations was N545.5 billion (2024), compared to positive cash flow in 2023, driven by working capital changes (e.g., receivables).

Investing Activities: Cash outflow of N686.2 billion due to acquisitions (e.g., NAOC) and capital expenditures.

Financing Activities: Reliance on debt (N2.27 trillion proceeds) to fund expansion, leading to a net cash inflow of N1.46 trillion.

4. Key Risks
High Leverage: Debt-to-equity ratio deteriorated, with total liabilities exceeding equity (N2.76 trillion vs. N273 billion equity). Interest expenses (N232.1 billion) strain profitability.

Legal & Contingent Liabilities:

Pending litigation (e.g., minority shareholder disputes, arbitration settlements).

Contingent liabilities from guarantees and unresolved tax claims.

Foreign Exchange Volatility: N155.9 billion foreign exchange loss in 2024 highlights exposure to currency fluctuations.

5. Strategic Moves
Acquisitions:

Completed the NAOC acquisition (OMLs 60–63) for N458.2 billion, boosting upstream assets.

Expansion into Angola’s Block KON 13 signals growth in exploration but adds execution risk.

Go-Private Initiative: Ongoing court battles with minority shareholders over the N7.71/share buyback scheme could delay restructuring.

6. Segment Performance
Exploration & Production (E&P):

Revenue: N416.9 billion (2024), up 229% YoY.

Operating profit: N218.9 billion (98% of Group total).

Supply & Trading:

Revenue: N3.7 trillion (2024), with a turnaround to N70.8 billion operating profit.

Corporate & Others: Drag on profits (N135.4 billion loss), likely due to consolidation adjustments and restructuring costs.

7. Outlook
Upside: Upstream growth (NAOC integration, Angola block) could boost reserves and production.

Downside: Debt servicing, legal disputes, and volatile oil prices threaten liquidity.

On OandO
wetin dey for that Cooperate and others thats eating their money?
Dem say na consolidated adjustment? meaning?
Grammar every where?

maybe na December party and Thisday Advertsss , , ,

SAK:
Which company is this?

Jaiz bank

Youngzedd:
Oando

Profit
2023: ~60.3B
2024: ~65.5B

EPS
2023: 5
2024: 5

istrative expenses
2023: ~261.4B
2024: ~402.7B

Oga Wale.....

Na where man dey work E dey chop. That's why it's called WORKCHOP

Maybe the description should have been better worded. You don't name an item an expense and then enter it as a credit.

On the whole, I think the result is a major improvement from previous years and a clear indication of the direction the company is headed going forward. They just need to quickly double efforts on the planned capital restructuring and adopt more cost effective approaches to running the business.

chimex38:

Good Observation..
But on further checks according to the line item, it's more likely a tax-credit rather than a tax-expense, hence not bracketed and rightly added.

In the same line item, they got a tax credit from their exploration activity of ₦27.99bn and it was added. That's the source of the observation you rightly highlighted.

I could also be wrong.
Cc: Youngzedd

chimex38:

Good Observation..
But on further checks according to the line item, it's more likely a tax-credit rather than a tax-expense, hence not bracketed and rightly added.

In the same line item, they got a tax credit from their exploration activity of ₦27.99bn and it was added. That's the source of the observation you rightly highlighted.

I could also be wrong.
Cc: Youngzedd

I guess it is a typo
The N17b was actually disclosed as income tax credit in the Q3 2024 results.

But Oando will have to raise equity capital and do some serious cost reduction / restructuring exercise in order to stop the bleeding arising from istrative expenses and Finance cost.
Otherwise, the company will keep struggling to make profits. That is the truth.
How soon they are able to do that will determine how far the share price can go.
For now, I won't be surprised to see the price falling to below N40.

Thank you for shedding more light on this.

In another topic, we should be expecting a cooperate action from OANDO soon ba?

ositadima1:





Why Did Oando Report a Tax Credit?
Upstream Tax Incentives:

1. Nigeria’s Petroleum Industry Act (PIA) grants tax holidays, investment allowances, and deductions for oil exploration and production (E&P) activities.

2. Oando’s E&P segment likely triggered tax credits due to capital allowances or reinvestment in upstream assets (e.g., NAOC acquisition).

Deferred Tax Assets (DTAs):

1. Past losses or temporary differences (e.g., impairments, depreciation) can create DTAs, which offset taxable income.

2. If Oando utilized DTAs from prior years, it would reduce current tax liability.


Is the Tax Credit Sustainable?
Yes, if:

1. Oando continues qualifying for upstream tax breaks (e.g., PIA incentives for new exploration).

2. It maintains deferred tax assets (e.g., through ongoing capital expenditures or losses).

No, if:

1. Tax authorities revise policies or restrict incentives.

2. DTAs are exhausted, or profitability improves significantly (increasing taxable income).

On Oanldo, many are there not because they expected fantastic results in the immediate period but because of the promised share re-distribution and ongoing positive turnaround in the coy

mikeapollo:


I guess it is a typo
The N17b was actually disclosed as income tax credit in the Q3 2024 results.

I think it's just a coincidence.
If you subtract the E&P tax credit of ₦27.99bn from the Cooperate & Others-tax expense of (₦10.283bn) you will get around ₦17bn..
That's how it was arrived at.

Pg 37 & 40

yMcy56:

I cant seems to see the Shareholding Structure
I've been searching for it
Which page did you see this pls

Or maybe they want to go international...

crownprince2017:

Majority shareholders increase their stake to 84% from 65%, something is telling me they will later delist the company .

Ding!!!

OandO Full Offer

KarlTom:
OandO Full Offer

KarlTom:
OandO Full Offer

Dey no wan make this OANDO wahala finish
Anyone looking for bargain should better keep eye on this round of dumping session...😁

We re also still awaiting board meeting outcome on the share/cash distribution.......😊

That's expected.

Hopefully, there would be a cooperate action on the share redistribution soon.

KarlTom:
OandO Full Offer

Im a buyer of Oando at N60

KarlTom:
Pg 37 & 40

Thanks
Na page 31 my own open reach when I ed it, maybe it was network.

If minority and fundamentalists don't dump, how will substantial shareholders be able to increase their stakes the more.....
We must see to the end of all these...😁

I will now wait for Oando at bargain price to mop up what I can afford to lose just as a topup on the little I have been holding since last year...

Wale na man you bi

ETranzact heading to Full Bid at N7.15

TIP, CWG, and CHELLERAM on Full Bid

CWG a gem people ignored when I called it out at #6+

TIME and PATIENCE will do the needful ❤️

Those in NB should know it's possibly a long term investment so RELAX

GeeKudi:
Maybe the description should have been better worded. You don't name an item an expense and then enter it as a credit.

On the whole, I think the result is a major improvement from previous years and a clear indication of the direction the company is headed going forward. They just need to quickly double efforts on the planned capital restructuring and adopt more cost effective approaches to running the business.

To be fair to them , it was worded correctly. I think that's the ing standard.
This is the wordings of the line item:
Income tax credit/(expense)
Credit isn't bracketed signifying +ve
Expense is bracketed signifying (-ve)
One can easily be oversighted especially as we look through multiple financial statements that ain't uniformly worded as such.

essentialone:
ETranzact heading to Full Bid at N7.15

TIP, CWG, and CHELLERAM on Full Bid

CONHALLPLC also on full bid......
McNichols also

Could be a good daytrade day for Oando.

Raider76:
Could be a good daytrade day for Oando.

Those buying while those selling are selling...

MONEY dey ground to do whatever

I think 10,048,237,955 units were 'added' (see Pg 32)...

Probably part of the recapitalization drive

yMcy56:

Thanks
Na page 31 my own open reach when I ed it, maybe it was network.

If minority don't dump, how will substantial shareholders be able to increase their stakes the more.....
We must see to the end of all these...😁

Don't loud it...

Raider76:
Could be a good daytrade day for Oando.

KarlTom:
Don't loud it...

People wey sabi, sabi

robobo:

People wey sabi, sabi

essentialone:
ETranzact heading to Full Bid at N7.15

TIP, CWG, and CHELLERAM on Full Bid

Yes, I came out because of E tranzact and CWG.
These used to be stocks of low profit margins in the past but today they have repositioned.Wait for CHAMS result any moment from now and see with your eyes how far they have improved.
Apart from omatek and NCR that needs restructuring,other stocks in the ICT sector are candidates of N10,N15,N20.
Cwg,E tranzact and Chams ,your own time has come.

I came back in peace.

Locotrader:


Yes, I came out because of E tranzact and CWG.
These used to be stocks of low profit margins in the past but today they have repositioned.Wait for CHAMS result any moment from now and see with your eyes how far they have improved.
Apart from omatek and NCR that needs restructuring,other stocks in the ICT sector are candidates of N10,N15,N20.
Cwg,E tranzact and Chams ,your own time has come.

I come back in peace.

The locomotive....