Friday, April 1, 2016 10:41 pm
Oando Nigeria Plc on Friday hinted on a not too-good performance in 2015, but the firm is hopeful of a turnaround to profitability this year.
The big energy firm, which has already run foul of the March 31 deadline imposed by the Nigerian Stock Exchange to file its returns for 2015, said the account will be ready on or before 31 May.
It declared a record N184billion loss for 2014 last year and from all indications, it is not out of the woods yet as it gave a profit warning that 2015 full year earnings would be lower than forecast, in line with the Q3 performance.
“While we are actively restructuring the business to adapt to this difficult period, we are optimistic and steadfast in our commitment to return to profitability in 2016,” it said in a statement today.
The company said it had worked diligently with its external auditor, Ernst & Young (“EY”) to ensure a swift conclusion to the audit process.
“The management of Oando would like to advise its valued shareholders, stakeholders and the wider investor community that from available indications, iwe are unlikely to complete the 2015 audit.”
It stated that after reviewing the financials, EY indicated that the accounts may likely need to be referred to the Financial Reporting Council of Nigeria (FRC) pursuant to Rule 5 of the recently publicised FRC Rules.
“We expect the process to be concluded on or before May, 31, 2016. However, this is dependent on the completion of the external review process as referred to above,” the statement said.
It explained that the expected decline in performance was attributable to the industry’s downturn, prevalent economic headwinds, fiscal and monetary restrictions driven by challenging macro environment.
SEC had in November 2015 sanctioned the firm for delayed filing of its audited financial statements (AFS) for the year ended Dec. 31, 2014.
It was sanctioned for violating post-listing obligations in accordance with applicable rules of the Exchange.
Oando then filed its 2014 result and that of its first quarter and half year 2015 interim unaudited accounts on Oct. 23, 2015.