Economy
Oando Cuts Debt Levels by 8%, Raises PAT by 26% in Q3
By Modupe Gbadeyanka
The management of Oando Plc under the leadership of Mr Wale Tinubu has continued to show that he has the ability to turnaround fortunes of the leading indigenous energy group in Nigeria.
The energy firm, listed both on the Nigerian and Johannesburg Stock Exchange, announced its unaudited results for the nine months period ended September 30, 2019 and from the highlights, it declared a 26 percent rise in profit after tax, which went up to N13.1 billion from N10.4 billion despite the total generated revenue going down by 18 percent to N413.8 billion from N505.1 billion, with the operating profit going down by 31 percent to N19.8 billion from N28.7 billion.
However, due to the strategies mapped out by the board and management, Oando was able to reduce its total borrowings by 8 percent to N193.1 billion from N210.9 billion, while the production increased by 8 percent to 43,045boe/day from 40,039boe/day.
This was driven by an 11 percent increase in natural gas production (from 120,047mcf/day YTD September 2018 to 133,415mcf/day YTD September 2019) and an 8 percent increase in crude oil production (from 16,850bbls/day YTD September 2018 to 18,147bbls/day YTD September 2019).
In YTD September 2019, Oando Trading traded approximately 9.3 million barrels of crude oil under various contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 317,649MT of refined products.
It incurred capital expenditure of $84.3 million in the nine months of 2019 compared with $59.3 million in same period in 2018. This consists of $77.3 million at OMLs 60 to 63, $5.6 million at OML 56, and $1.4 million on other assets.
During the year, the company, in conjunction with its JV partners, aggressively ramped up its drilling program towards increasing oil revenue and meeting gas obligations and as at September 2019, it has successfully completed a side track at OML 56, shoring up net production by nearly 1,500bbls/day, whilst also drilling and completing five wells across three rig lines at its joint venture operations on OMLs 60-63.
Recall that last month, Oando announced that the NNPC/NAOC/OANDO Joint Venture (of which Oando Energy Resources [OER] holds a 20 percent working interest) had made a significant gas and condensate find in the deeper sequences of the Obiafu-Obrikom fields in OML 61, onshore Niger Delta.
Preliminary evaluation indicates that the find amounts to about 1 trillion cubic feet of gas and 60 million barrels of associated condensate in the deep drilled sequences.
The well can deliver in excess of 100 million standard cubic feet/day of gas and 3,000 barrels/day of associated condensates. The discovery is part of a drilling campaign planned by the Joint Venture aimed at exploring near-field and deep pool opportunities as immediate time to market opportunities.
The JV started gas and condensate production from the Obiafu-41 discovery just 3 weeks after completion and the gas from this discovery will largely be channelled to the domestic market in order to feed the power sector.
Oando said the full impact of this discovery will be determined and communicated to the market on conclusion of the next annual independent reserves and resources evaluation.
Commenting on the results, Mr Tinubu said, “In the period under review, we made substantial progress on our top priority of operational growth and recorded an 8 percent increase in hydrocarbon production.
‘In conjunction with our partners, we successfully completed an ambitious 6-well drilling program, the results of which have been positive, and are particularly excited about the discovery of a significant gas and condensate find at a field in OML 61 of our Joint Venture.
“This has had a major impact on our reserves and consequently future cash flows. Production has since commenced in October on the completed wells, and the gas will largely be channelled to feed the nation’s power sector through our Joint Venture’s Okpai Power plant, Nigeria’s first independent power plant.
“In addition, we achieved an 8 percent reduction in our debt levels, whilst growing free cash flows. Over the last quarter of the year, our focus will be on the completion of our drilling program as well as tie-in of the new discoveries.”
By Aduragbemi Omiyale
The N3.04 billion rights issue of Regency Alliance Insurance Plc is expected to open on Monday, June 22, 2026, and close on Friday, July 3, 2026, with shareholders urged to participate.
The underwriting firm recently signed an agreement on the rights issue, with board members, management, issuing houses, legal advisers, stockbrokers, and other key stakeholders in attendance.
Regency Alliance is offering to shareholders 3,201,000,000 ordinary shares of 50 Kobo each at 95 Kobo per share on the basis of one new ordinary share for every five ordinary shares held.
The purpose of the fresh capital raise is to bolster the company’s solvency ratios, support business growth, and invest in digital infrastructure and new product development.
The insurance company noted that the rights issue provides an opportunity to existing shareholders to subscribe for additional shares in proportion to their current holdings, protecting them from dilution while enabling them to participate in the organisation’s future growth.
“This capital raise will give us the firepower to meet evolving risks, expand our reach, and deepen the promise we make to every policyholder; that Regency Alliance will be there when it matters most,” the acting chairman of Regency Alliance, Mr Wale Taiwo (SAN), stated.
“We are particularly encouraged by the unwavering support of our shareholders who have stood by the company through its growth journey. We urge all eligible shareholders to take advantage of this rights issue and fully exercise their rights.
“By doing so, they will not only protect their investment from dilution but also participate directly in the exciting growth opportunities that lie ahead for Regency Alliance Insurance,” he added.
Also commenting, the Managing Director of the firm, Mr Bode Oseni, said, “Regency Alliance has always prided itself on being agile, customer-focused xd, and financially sound. The proceeds from this rights issue will accelerate our digital transformation, enhance claims efficiency, and enable us to introduce innovative products tailored to SMEs, Gen Z, and other underserved segments across Nigerian and beyond. We are not merely raising capital; we are raising our ambition.”
“We remain optimistic that our shareholders will embrace this opportunity and demonstrate their confidence in the company’s future by taking up their rights. Together, we are building a strong and more competitive insurance institution,” he added.
By Adedapo Adesanya
Oil palm processing firm, Okitipupa Plc, and two other securities weakened by the NASD Over-the-Counter (OTC) Securities Exchange by 0.4 per cent on Thursday, June 18.
During the trading day, Okitipupa Plc lost N20.00 to end at N280.00 per share compared with the previous day’s N300.00 per share, NASD Plc declined by 36 Kobo to finish at N37.00 per unit versus N37.36 per unit, and Central Securities Clearing System (CSCS) Plc depreciated by 23 Kobo to N86.34 per share from N86.57 per share.
As a result, the market capitalisation retreated by N10.39 billion to N2.609 trillion from N2.619 trillion, and the NASD Unlisted Security Index (NSI) slid by 17.36 points to 4,361.09 points from 4,378.45 points.
Business Post reports that the sole price gainer for the session was Afriland Properties Plc, which improved by 65 Kobo to N16.20 per unit from N15.55 per unit.
Yesterday, the volume of securities transacted by market participants shrank by 71.6 per cent to 792,835 units from Wednesday’s 2.8 million units, the value of securities fell by 61.8 per cent to N49.0 million from N128.3 million, while the number of deals went down by 39.4 per cent to 20 deals from 33 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 67.7 million units traded for N4.7 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
By Adedapo Adesanya
The Naira free-fall against the US Dollar continued in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, June 18, losing 0.24 per cent or N3.23 to trade at N1,363.30/$1 compared with the previous day’s N1,360.07/$1.
However, the domestic currency appreciated against the Pound Sterling in the official market during the session by N19.12 to trade at N1,805.69/£1 versus midweek’s N1,824.81/£1, and gained N12.89 on the Euro to sell at N1,565.07/€1, in contrast to the preceding day’s N1,577.96/€1.
At the GTBank FX counter, the Naira lost N1 against the Dollar to trade at N1,373/$1 versus Wednesday’s closing rate of N1,372/$1, and at the black market, it remained unchanged at N1,385/$1.
Tightness in FX liquidity continued to pressure the local currency, contributing to a decline in the official exchange rate due to rising demand for foreign payments.
Analysts also attribute the market liquidity dynamics to the lack of substantial Open Market Operation (OMO) bill positioning by foreign portfolio investors, who are key sources of hard currency inflows for the Central Bank of Nigeria (CBN).
The apex bank’s daily FX report revealed that interbank FX turnover increased to $69.918 million across 85 interbank transactions, up from $54.293 million the previous day.
As for the cryptocurrency market, Bitcoin (BTC) traded below $63,000 after losing 1.7 per cent to close at $62,742.28 on Thursday, as risk assets sold off worldwide, erasing the gains it made earlier in the week on the back of the US-Iran peace deal.
The pressure came from a wider retreat in markets as shipping through the Strait of Hormuz returned to normal under the signed US-Iran deal and eased what had been a historic supply shock.
Attention now turns to talks over Iran’s nuclear programme, with Vice President JD Vance saying a 60-day clock to settle the deal’s details has started.
During the session, Solana (SOL) crashed by 3.3 per cent to $68.68, Ripple (XRP) depreciated by 2.7 per cent to $1.13, Cardano (ADA) slid 2.4 per cent to $0.1606, Binance Coin (BNB) slumped 2.0 per cent to $576.11, Dogecoin (DOGE) slipped by 1.9 per cent to $0.0826, and Ethereum (ETH) went down by 1.7 per cent to $1,696.74.
However, TRON (TRX) improved by 0.1 per cent to $0.3204, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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