Oando Issues Profit Warning, Plans to Release 2011 Earnings in May

Nigeria’s largest and most respected indigenous Oil and Gas company, Oando, has alerted stakeholders on an impending dip in net income.

The company released a statement today in which it attributed the dip in net income to one-off costs which analysts speculate are related to the termination of technical and managerial charges it is paying to Ocean and Oil.

Below is the full excerpt of the statement, “Oando hereby advises shareholders of relevant information affecting its Financial Year Ended (FYE) 2011 results. Following the preliminary review of the Group’s final accounts for the year ended 31 December 2011, the Company expects to announce a decrease in its budgeted profit forecast for the year.

The decrease is driven principally by one-off write-offs which include impairments of assets, project expenses from capital raising exercises, acquisitions, and termination of technical and managerial charges. The underlying performance indicators for the period are in line with Management’s 2011 projections and the Company’s 2011 FYE audited accounts will be released on or around 10 May, 2012.

Barring any unforeseen circumstances, Management does not anticipate any further similar exceptional items in 2012, and following these actions, affirms that the Group’s balance sheet and capital are in a robust position, providing a solid foundation for the Group’s future growth path. The Group remains focused and dedicated on delivering on its promise to shareholders on value creation, and looks forward to an improved earnings position for the year 2012, with the addition of the earnings from the newly commissioned assets.”