Yemisi Izuora
The Nigerian Stock Exchange (NSE) has expressed deep concerns over Oando Plc’s late submission of its 2014 financial results.
The NSE is therefore reviewing the situation and has notified the Securities and Exchange Commission (SEC) on the matter.
A statement by the Exchange noted, “The Exchange is reviewing the situation regarding the delayed filings of the Audited Financial Statements of Oando Plc for the year ended 31 December 2014 and its Q1 and H1 delayed filings.
The Exchange is greatly concerned about the delayed filings and the significant losses which were posted for the 2014 fiscal year and the first three quarters of 2015.
The NSE said it was “greatly concerned” by Oando’s late release of its’ 2014 annual results and that it was reviewing the situation and notified the SEC.
Companies listed on the bourse are meant to announce full-year numbers within 90 days of the period ending.
Oando, the biggest indigenous oil and gas producer in Nigeria also listed on Johannesburg Stock Exchange (JES), recently announced impairments of N185 billion ($938 million) for the financial year ended December 31, 2014 even as the value of its assets dropped amid plunging crude prices.
The energy company announced the wrote down of N130 billion in its exploration and production division and N36 billion in its services arm because of a decline in the value of its oil rigs, Chief Executive Officer Wale Tinubu said in a letter dated Oct. 29, which was posted on the NSE’s website on Tuesday.
Oando also took a N19 billion hit for foreign exchange losses.
“With global upstream players forced to record significant reductions in the fair value of their asset portfolios in the last 10 months, we are no exception,” Tinubu wrote in the letter.
“As we gradually exit our investment phase, we remain committed to shoring up our balance sheet, significantly reducing our interest burden, returning the company to profitability.”
Oando revealed a loss for 2014 of N181 billion last month compared with a N1.4 billion profit in 2013. The company also said it lost N13 billion between July and September this year, following losses in the first and second quarters.