Oando FY 2011 Earnings Come in At =N= 586 Billion, Profit Plummets

Oando, Nigeria’s leading indigenous Oil and Gas Company reported its audited 2011 Financial Statements to the Nigerian Stock Exchange (NSE) yesterday. Profitability metrics disappointed the company’s shareholders especially since no dividend was declared.

The multinational company reported a growth in Revenue of 54.8%, as sales topped N 586 billion; up from N 378 billion in the previous year.

However an increase in Oando’s debt by about 60% or over N180 billion led affected the company’s profitability.

Profit before tax arrived at N 15 billion, a decrease of 38.6% over the N 24 billion it made in FY 2010.

Net income following the trend, also shed  76% from N 14 billion in 2010 to N 3.4 billion at the end of last year.

Shareholders deplored the level and cost of borrowing to the company. Semiu Akindele an entrepreneur based in Lagos said, “This is a bad results. Mr Wale Tinubu has let us down ( Shareholders). Oando borrowing from Bank is too much when compared with Equity assets. The company is in high debts and highly leverage with shown any sign of reducing the level of debts. All members of Board of Directors should queried for this debts. They are just wasting our money on unprofitable projects. ”

Mr. Dibaal Oghu a researcher at Luth posed, “Why no dividend? Poor result!”