The Managing Director of Oando Plc, Wale Tinubu, on Thursday said that the company would seek approval from the Federal Government for the refurbishment of one or two refineries.
Mr. Tinubu stated this at the company’s facts behind the figures at the Nigerian Stock Exchange, NSE, in Lagos.
He said that refurbishment of the refineries would enable the country to end fuel importation.
Mr. Tinubu stated that the company would take advantage of its indigenous status by participating in the federal government’s bid.
He added that militancy activities were affecting its production in the Niger Delta.
The managing director said that 2016 was a challenging year for companies due to foreign exchange challenges.
He added that the company was besieged with liquidity constraints, devaluation of the naira and a slump in oil earnings due to low oil prices intensified by the insurgency in the Niger Delta.
According to him, the company has mapped out strategies to mitigate the foreign exchange challenges, as 90 per cent of its earnings focus will be on dollar, while 10 per cent will be in naira.
On the midstream, Mr. Tinubu said that the company would invest in acquisition of NIPP grid connected power utilities in the current financial year.
He stated that the company would commence phased development of gas distribution system in Tema industrial area Ghana in 2018.
The company for the financial year ended December 31, 2016, posted a profit after tax of N3.5 billion, this was against a loss after tax of N47.6 billion posted in the preceding period of 2015.
The result showed that the company posted a turnover of N569 billion against N380 billion recorded in the comparative period of 2015, representing an increase of 49 per cent.
Its net debt reduced by 35 per cent to N230.6 billion in contrast with N355.4 billion posted in 2015.
Mr. Tinubu attributed the performance to its proactive timely execution of its restructuring programme of growth in upstream division.
He said that some divestments embarked upon by the company during the period under review resulted in a net debt reduction of $125 billion.
He attributed the company’s return to profitability to focus on dollar denominated earnings.
Mr. Tinubu stated that 2016 saw the country plunge into a recession for the first time in over two decades.
Haruna Jalo-Waziri, NSE Executive Director, Capital Market commended the company for coming for the facts behind the figures.
Mr. Jalo-Waziri said that timely and accurate information helped investors in making the right investment decision.
He also urged the company to always comply with good corporate governance, noting that the exchange would continue to provide the needed platform for quoted companies to excel.