Oando Plc one of Nigerian major player in the oil and gas industry has rekindle investors confidence with its first quarter result for the period ended March 31, 2016. Although the result was not too impressive, in view of the fact that Oando Plc posted losses in 2014 and 2015 financial years.
According to some highlights of the unaudited result, revenue was down by 9.54 percent to N27,725 billion against N30,649 billion in 2015. Profit after tax stood at N4.1 billion when compared with a loss of N20,911 billion in first quarter of 2015. Finance cost which has been a major concern to market watchers and Ernest & Young Oando external auditor went up by 11.71 percent.
However, Oando Plc recently received N94.6 billion facility provided by ten leading financial institutions in Nigeria. The financing, coordinated by the mandated lead arranger, Access Bank Plc is a five year Medium Term Note (MTN) at Nibor + 200 bps as a crucial part of Oando strategic restructuring plans.
The institutions involved in the financing are; Access Bank, Diamond Bank, Ecobank, FCMB, Fidelity Bank, Keystone Bank, Stanbic IBTC Bank, UBA Bank, Union Bank and Zenith Bank. The transaction according to market analysts further signifies the solid commitment from Nigerian banking institutions to support sustained growth and development of the Nigerian oil and gas sector in these trying times.