| Tue 9 Jun 2009, 11:00 | | OAO - Oando - Audited results for the full year ended 31 December 2008 |
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OAO
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OAO - Oando - Audited results for the full year ended 31 December 2008
Oando Plc
(Incorporated in Nigeria and registered as an external company in South Africa)
Registration number: RC 6474
(External company registration number: 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
("Oando" or "the Company" or "the Group")
Audited results for the full year ended 31 December 2008
Highlights
- Turnover of $2.69bn
- Gross profit of $326.11m
- Operating profit of $138.59m
- Profit after tax of $74.27m
- Attributable profit after tax of $74.23m
- Earnings per share of 8.20c
- Strong growth in revenue
- Marked improvement in gross margin
- Significant contribution from upstream operations
- Acquisition of additional rig
- Completion of Lagos Phase Three Project of gas distribution network
Review of results
Oando, which has a primary listing on the Nigerian Stock Exchange ("NSE") and a
secondary listing on the JSE Limited ("JSE"), reports profit after tax ("PAT")
for the full year ended 31 December 2008 of $74.27m.
Income statement analysis
Our performance for the year ended 2008 was a marked improvement over prior
year. These results demonstrate our deep and unalloyed commitment towards
achieving our strategic goal of becoming the leading energy solutions provider.
The performance, anchored on superior operating efficiency was driven by all our
business divisions. The report is a further reflection and affirmation of our
unflinching bias towards increasing shareholders` wealth through strong
performance and commitment to best ethical business practice.
Our Corporate drive for 2008 was centered on operational excellence with
customer service as a pivotal platform for all our activities. This initiative
brought about improved performance supported by relative political and economic
stability. Indeed except for the unfortunate depreciation in exchange rate
towards the end of last year with attendant implication for import finance and
related trade transactions, our performance would have been better than what is
being reported now .
Our full year performance continues the recent trend recorded in the last three
quarters. Overall, consolidated turnover increased by 79% from $1.50bn in
December 2007 to $2.69bn in December 2008. This is attributable to the
following: increased business activities especially our Supply & Trading and
marketing divisions; improvement in our supply chain management; on-time
delivery across the businesses; stability in the business environment;
significant contribution from our upstream operation and improved product
availability during the year.
The positive growth in turnover coupled with marked improvement in margin
efficiency led to an 88% increase in gross profit of the Group from $173.28m
recorded in 2007 to $326.11m in 2008.
Significant progress recorded in operational efficiency ensured a modest 37%
growth in marketing and selling expense against 79% recorded at turnover level.
Administrative expense increased by 71% compared to prior period largely on
account of provision and amortization recognised on intangible assets used in
the upstream and energy service divisions. The Company`s effective cost
containment effort resulted in an overall 59% increase in operating expense for
the year culminating in 116% growth in operating profit of the Company to
$138.59m from $64.13m recorded earlier in 2007.
Finance cost increased during the year. This was largely due to the spike in
local lending rates, increased borrowing attributable to delay in government
settlement of Petroleum Subsidy Fund (PSF) receivables and bridging claim
allowances and in meeting transaction obligations (following the deterioration
of the Naira against major currency of US Dollar). Management will continue to
seek avenues to minimise the company`s exposure to such volatility in future.
Consolidated profit after taxation increased by 49% from $49.8m to $74.3m in
2008. This growth is, as highlighted earlier, attributable to increased trading
activities, strong margin recovery and modest growth in operating expenses.
Profit after taxation attributable to ordinary shareholders rose by 69% to
$74.3m from $43.9m while adjusted earnings per share increased by 27% from 6.94c
to 8.82c.
Balance sheet analysis
Our fixed assets increased significantly by 53% last year due to acquisition of
value-adding assets within the upstream and energy service divisions. The
Company concluded on the purchase of the initial two rigs while an additional
rig was bought during the year. In addition, for the sum of US$189m the company
acquired a 15% stake in OML 125 and 134 being part of the stake previously owned
by Shell. Within the gas and power division, the ongoing 124km pipeline
construction for our East Horizon gas pipeline project and the captive power
plant brought about the increase in our long term receivables. Management
believes these projects once completed, in addition to the upstream and energy
service assets that are now in operation will together drive future
profitability and sustainability of our Group company.
As a result of the significant increase in business operation, delay in
government settlement of PSF receivables and bridging claim allowances, Group
wide borrowing including import finance facilities increased to $1,407.56m. Most
of these facilities are taken to support our expanded trading activities and are
efficiently priced with our bankers.
Continuous and efficient working capital management ensured the Company
maintained a robust cash and bank balance of $374.64m, a $226.67m jump over the
prior year position. Our stock level is efficiently managed and is consistent
with the growth in turnover while our volume of trade debtor and other non-trade
balances has grown on the back of delay in government settlement of Petroleum
Subsidy Fund(PSF) receivables. In 2008, there has been significant deterioration
in petroleum subsidy fund settlement by the Government culminating in PSF
receivables in excess of $340m by the end of the year. This placed huge
constraint on our working capital management as the Company had to resort to
borrowing to meet obligation as and when due.
Prospects for the Future
The Group during the period under review continued its expansion drive, which
includes diversification from the lower margin segments, progressing to higher
value areas of the energy value chain like Upstream Exploration & Production,
high margin-based services and rigs drilling system; a strategy which we believe
will yield significant returns in the near future.
Our upstream division buoyed by the recent acquisition of part of Shell`s stake
in OML 125 &134 is expected to contribute significantly to the bottom-line.
Aggressive effort is also in place to bring other non-producing assets within
the portfolio to production in 2009. Strategic alliances formed with major
producers is expected to aid rapid "time to production" of these assets.
Our energy service business is poised to deliver strong performance following
the commencement of drilling operations by two of our rigs. The Company been
awarded drilling contracts valued at US$150m by Agip Exploration. We expect to
get the other rigs into contact in the shortest possible time.
Following the completion of the Greater Lagos II Gas project and commencement of
gas supply, we expect a substantial increase in contribution to our margin from
our Gas and power division as more customers are connected to the supply grid in
2009. Eastern Horizon, our 124km pipeline project is expected to become
operational by the end of the third quarter of 2009 while the Lagos State Water
Works captive power plant, a pioneering effort of the Gas and Power division is
also expected to be commissioned for use before the end of this year.
The uncertainties surrounding the deregulation of the downstream sector
notwithstanding, our marketing division is poised to sustain its current upward
trend in profitability. Turnover levels witnessed during 2008 is expected to
continue well into 2009. Management will continue its pursuit of maximum value
extraction from the downstream division while effort will be made to sustain the
gain recorded in 2008. Non-fuel revenue drive will be sustained and improved
upon while cost curtailment drive will permeate every facet of the division`s
operation. We also expect significant improvement in government settlement of
PSF receivables and bridging claims allowances.
Our Supply & Trading business`s quest to dominate the West African market is
gradually yielding results with the Company`s strategic alliances with major
marketers within the axis. As the largest private importer of petroleum products
into Nigeria, the Company is expected to leverage on the market acceptability
and niche that it has created to deliver strong performance before year-end and
guarantee its sustainable growth in the coming years. The strategic alliances
formed with the Group`s upstream operations amongst other partners appear
brighter with the attainment of "first Oil".
Consolidated Balance Sheet
As at 31 December 2008
2008 2007
ASSETS $`million $`million
Non-current assets
Property Plant & Equipment 693.12 284.35
Intangible Assets 175.04 259.58
Available for sale financial assets 0.00 0.09
Long Term Receivables 114.18 97.76
982.34 641.78
Current assets
Inventories 122.93 212.64
Trade & Other Receivables 727.49 401.10
Cash & Cash Equivalents 374.64 147.97
1,225.05 761.71
Total assets 2,207.39 1,403.49
Equity
Capital & Reserves attributable to equity
holders
Share Capital 3.49 2.90
Share Premium 227.28 232.91
Revaluation Reserve 47.35 56.95
Exchange Difference 6.15 28.25
Retained Earnings 57.15 53.74
341.42 374.74
Minority Interest 1.160 1.61
Total equity 342.58 376.35
Liabilities
Non-Current Liabilities
Borrowing 318.86 152.45
Deferred income tax liabilities 57.27 42.60
Retired benefit obligation 0.00 2.70
Provisions 9.46 3.66
385.59 201.41
Current Liabilities
Trade & Other Payables 364.86 361.90
Current Income Tax Liabilities 25.67 11.29
Borrowings 1,088.70 452.58
1,479.22 825.73
Total Liabilities 1,864.81 1,027.13
Total Equity & Liabilities 2,207.39 1,403.49
Consolidated Income Statement
for the full year ended 31 December 2008
2008 2007
$`million $`million
Sales 2,686.54 1,501.79
Cost of Sales (2,360.44) (1,328.51)
Gross Profit 326.11 173.28
Selling & Marketing Costs (63.11) (46.23)
Administrative Expenses (141.75) (82.89)
Other Operating Income 15.35 19.96
Operating Profit 138.59 64.13
Shares of Profit of Associates - -
Finance Costs (47.13) (3.44)
Profit Before Taxation 91.46 60.69
Income Tax Expense (17.19) (10.89)
Profit After Expense 74.27 49.80
Attributable to:
Non-Controlling Shareholders 0.04 5.86
Equity Holders of the Company 74.23 43.94
74.27 49.80
The Group company is organised into four main business divisions:
- Exploration and production of oil and gas (E&P) - involved in the
exploration for and production of oil and gas through the acquisition of
rights in oil blocks on the Nigerian continental shelf and deep offshore
- Refining and marketing of petroleum products - involved in the refining of
crude and the marketing and sale of petroleum products. Over the years,
the Group had focused primarily on the marketing of petroleum products.
Presently, the Group is in the process of acquiring and developing a
refinery business. The activities of the trading companies are reported
under this segment.
- Gas and power - involved in the distribution of natural gas through its
subsidiaries Gaslink and Eastern Horizon (incorporated during the year).
The Group also incorporated a Power company to serve a niche in Nigeria`s
power sector, by providing reliable power to industrial customers. The
company is however yet to commence operations.
- Energy services- involved in the provision of services such as drilling
and completion fluid; oil-well cementing and other services to upstream
companies.
Below is the Group performance on a divisional basis for the full year ended 31
December 2008:
Exploration Refining & Gas & power Energy Total
& marketing services &
production Group
office
US$`000 US$`000 US$`000 US$`000 US$`000
Gross segment 106,240 4,304,425 55,524 35,018 4,501,207
revenue
Inter-segment - (1,814,663) - - (1,814,663)
revenue
Revenue 106,240 2,489,762 55,524 35,018 2,686,544
Operating 40,274 101,439 5,908 (9,030)1 138,591
(loss)/profit
Finance costs (11,171) (36,308) (1,141) 1,488 (47,132)
- net
Profit before 91,459
income tax
Income tax (17,191)
expenses
Profit for 74,268
the year
Below is the Group performance on a divisional basis for the full year ended 31
December 2007:
Exploration Refining & Gas & power Energy Total
& marketing services &
production Group
office
US$`000 US$`000 US$`000 US$`000 US$`000
Gross segment - 1,384,624 35,456 84,332 1,504,412
revenue
Inter-segment - (2,618) - - (2,618)
revenue
Revenue - 1,382,006 35,456 84,332 1,501,794
Operating (1,345) 58,925 5,340 1,209 64,129
(loss)/profit
Finance costs - (3,084) 1,917 (2,270) (3,437)
- net
Profit before 60,692
income tax
Income tax (17,191)
expenses
Profit for 43,501
the year
Consolidated Statement of changes in Shareholder`s Equity Attributable to equity
holders of the Company For the full year ended 31 December 2008:
Share Share Revaluation Cumulative
Capital Premium reserve translation
adjustment
US$m US$m US$m US$m
Balance as at 31 December 2007 2.90 232.91 56.96 28.25
Retained profit for the period
Bonus issue of shares 0.59 (0.59)
Dividend paid
Exchange difference (6.29) (22.10)
Reversal of revaluation surplus (4.61)
Deferred tax on revaluation 1.38
surplus
Share Issue Cost (5.04
Balance as at 31 December 2008 3.49 227.28 47.50 6.15
Retained Minority Total
earnings interest equity
US$m US$m US$m
Balance as at 31 December 2007 53.74 1.61 376.35
Retained profit for the period 0.03 74.27
74.23
Bonus issue of shares
Dividend paid (70.82) (0.48) (71.30)
Exchange Difference (28.40)
Reversal of revaluation surplus (4.61)
Deferred tax on revaluation surplus 1.38
Share Issue Cost (5.04)
Balance as at 31 December 2008 57.15 1.16 342.58
Share Share Revaluation Cumulative
Capital Premium reserve translation
adjustment
US$m US$m US$m US$m
Balance as at 31 December 2006 2.16 120.74 11.37 7.11
Revaluation surplus on property 66.31
plant and equipment
Deferred tax effect of residual (20.55)
value restatement
Issue of shares/Disposal of 0.74 112.16
minority Interest
Fair value gain/loss on (0.173)
available for sale investments
Currency Translation adjustment 21.14
Balance as at 31 December 2007 2.90 232.91 56.96 28.25
Retained Minority Total
earnings interest equity
US$m US$m US$m
Balance as at 31 December 2006 28.03 14.65 184.05
Revaluation surplus on property plant and 66.31
equipment
Deferred tax effect of residual value (20.55)
restatement
Issue of shares/Disposal of Minority interest (13.23) 99.67
Fair value gain/loss on available for sale (0.173)
investments
Currency Translation adjustment 21.14
Profit for the year 43.94 0.19 44.14
Final Dividend for 2006 (18.23) (18.23)
Balance as at 31 December 2007 53.74 1.61 376.35
Notes to reviewed results
1. General information
Oando (formerly Unipetrol Nigeria Plc) was registered by a special resolution as
a result of the acquisition of the shareholding of Esso Africa Incorporated
(principal shareholder of Esso Standard Nigeria Limited) by the Federal
Government of Nigeria. The Company was partially privatised in 1991. It was
however fully privatised in the year 2000 consequent upon the sale of Federal
Government`s 40% shareholding in the Company. 30% was sold to core investors
(Ocean and Oil Investments Limited) and the remaining 10% to the Nigerian
public. In December 2002, the Company merged with Agip Nigeria Plc following its
acquisition of 60% Agip Petroli`s stake of Agip Nigeria Plc in August of the
same year. The Company formally changed its name from Unipetrol Nigeria Plc to
Oando Plc in December 2003.
The principal activity of the Company locally and internationally is to have
strategic investments in energy companies across West Africa. The Group is
involved in the following business activities via its subsidiary companies:
- Marketing of petroleum products, manufacturing and blending of lubricants
- Oando Marketing Limited
- Distribution of natural gas for industrial customers - Gaslink Nigeria
Limited
- Supply and distribution of petroleum products - Oando Supply and Trading,
Nigeria; and Oando Trading, Bermuda
- Energy services to upstream companies - Oando Energy Services
- Exploration and Production - Oando Exploration and Production.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these
consolidated financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements of Oando have been prepared in accordance
with International Financial Reporting Standards (IFRS). The consolidated
financial statements have been prepared under the historical cost convention, as
modified by the revaluation of land and buildings, and financial assets and
financial liabilities at fair value through profit or loss.
The preparation of financial statements in accordance with IFRS requires the use
of certain critical accounting estimates. It also requires management to
exercise judgement in the process of applying the Group`s accounting policies.
Early adoption of standards
In 2004, the Group early adopted the IFRS below, which are relevant to its
operations. These have been consistently applied in this Audited financial
report for the full year of 2008.
IAS 2 (revised 2003) Inventories
IAS 8 (revised 2003) Accounting Policies, Changes in Accounting Estimates and
Errors
IAS 10 (revised 2003) Events after the Balance Sheet Date
IAS 16 (revised 2003) Property, Plant and Equipment
IAS 17 (revised 2003) Leases
IAS 21 (revised 2003) The Effects of Changes in Foreign Exchange Rates
IAS 24 (revised 2003) Related Party Disclosures
IAS 27 (revised 2003) Consolidated and Separate Financial Statements
IAS 28 (revised 2003) Investments in Associates
IAS 32 (revised 2003) Financial Instruments: Disclosure and Presentation
IAS 33 (revised 2003) Earnings per share
IAS 36 (revised 2004) Impairment of Assets
IAS 38 (revised 2004) Intangible Assets
IAS 39 (revised 2003) financial instruments: Recognition and measurement
IFRS 2 (issued 2004) Share-based payments
IFRS 3 (issued 2004) Business Combinations
IFRS 5 (issued 2004) Non-current Assets Held for Sale and Discontinued IFRIC 10
(Issued 2006) Interim Financial Reporting and Impairment.
- The early adoption of IAS 10 has resulted in a change in the accounting
policy for dividends. Proposed dividends, which were previously
recognised in the year prior to the declaration, have been adjusted in
accordance with IAS 10 and 37 respectively.
- The application IAS 16 has affected the accounting for fair value
reserve relating to revalued land and buildings upon disposal.
- Under previous GAAP, the revaluation surplus included in equity in
respect of an item of property, plant and equipment were transferred to
the income, when the asset is disposed of, to determine profit on
disposal. Adjustments have been passed to transfer the related amounts
directly to retained earnings in accordance with IAS 16. Also, early
adoption of IAS 16 (revised 2004) has necessitated the disclosure of
prior year comparatives for all movements in property plant and
equipment.
- IAS 21 (revised 2003) has affected the translation of foreign entities`
income statements, on which closing rates were previously applied but
now amended and translated at average rates. The functional currency of
each of the consolidated entities has also been re-evaluated based on
the guidance to the revised standard. All the Group entities have the
same functional currency as their presentation currency. These
financial statements have been presented in a currency other than the
Company`s functional currency, being US Dollars, to meet the filing
requirements of the JSE.
- IAS 24 (revised 2003) has affected the identification of related
parties and some other related-party disclosures.
- IAS 27 (revised 2004) has affected the consolidation of subsidiaries.
Certain subsidiaries, which were not included in the consolidation
under previous GAAP have now been consolidated.
- The early adoption of IAS 33 has resulted in a change in the
computation of earnings per share. Earnings per share, which were
previously computed on the basis of the number of shares in issue at
the end of the reporting period, have been adjusted on the basis of the
weighted average number of shares in accordance with IAS 33.
- The early adoption of IAS 39 has resulted in a change in accounting for
financial assets and liabilities.
- The Group obtained approval for its share option scheme from the
regulatory authority in February 2009. Accordingly all shared-based
payment in operation has been subjected to and accounted for under IFRS
2 for the first time in 2008.
- The early adoption of IFRS 5 has resulted in a change in the accounting
for non-current assets held for sale and discontinued operations as
qualifying assets have been reclassified accordingly.
- The early adoption of IFRS 3, IAS 36 (revised 2004) and IAS 38 (revised
2004) resulted in a change in the accounting -policy for goodwill.
Until 31 December 2002, goodwill was:
- Amortised on a straight line basis over a period ranging from 5 to
20 years; and
- Assessed for an indication of impairment at each balance sheet
date.
- In accordance with the provisions of IFRS 3:
- The Group ceased amortisation of goodwill from 1 January 2003;
- Accumulated amortisation as at 31 December 2002 has been eliminated
with a corresponding decrease in the cost of goodwill;
- Goodwill was tested for impairment at 1 January 2003, the transition
date. Also, from the year ended 31 December 2003 onwards, goodwill is
tested annually for impairment, as well as when there are indications
of impairment. The Group has also reassessed the useful lives of its
intangible assets in accordance with the provisions of IAS 38. No
adjustment resulted from this reassessment.
All changes in the accounting policies have been made in accordance with the
transition provisions in the respective standards.
The early adoption of IAS 1, 2, 8, 17 28, and 32 (all revised 2003) did not
result in substantial changes to the Group`s accounting policies.
In summary:
- IAS 1, 2, 28 and 32 had no material effect on the Group`s policies.
- IAS 8 (revised 2004) has resulted in the disclosure of the impact of new
standards
2.2 Consolidation
(a) Subsidiaries
Subsidiaries include all entities (including special purpose entities) over
which the Group has the power to govern the financial and operating policies
generally accompanying a shareholding of more than one half of the voting
rights. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether the Group
controls another entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are deconsolidated from the date
that control ceases.
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The cost of the acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities incurred or
assumed and the date of plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair values at the
acquisition date irrespective of the extent of any minority interest. The excess
of the cost of acquisition over the fair value of the Group`s share of the
identifiable net assets acquired is recorded as goodwill. If the cost of
acquisition is less than the fair value of the net assets of the subsidiary
acquired, the difference is recognised directly in the income statement. All
balances and unrealised surpluses and deficits on transactions between group
companies have been eliminated. Where necessary, accounting policies for
subsidiaries have been changed to be consistent with the policies adopted by the
Company, Separate disclosure (in equity) is made of Minority Interests.
(b) Associates
Associates are all entities over which the Group has significant influence but
not control, generally accompanying a shareholding of between 20% and 50% of the
voting rights. Investments in associates are accounted for by the equity method
of accounting and are initially recognised at cost. The Group`s investment in
associates includes goodwill (net of any accumulated impairment loss) identified
on acquisition. The Group`s share of its associates` post-acquisition profits or
losses is recognised in the income statement, and its share of post acquisition
movements in reserves is recognised in reserves. The cumulative post-acquisition
movements are adjusted against the carrying amount of the investment.
When the Group`s share of losses in an associate equals or exceeds its interest
in the associate, including any other unsecured receivables, the Group does not
recognise further losses, unless it has incurred obligations or made payments on
behalf of the associate. Unrealised gains on transactions between the Group and
its associates are eliminated to the extent of the Group`s interest in the
associates. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. The accounting
policies of the associates are consistent with the policies adopted by the
Group.
Goodwill included in the carrying amount of an investment is neither amortised
nor tested for impairment separately by applying the requirements for impairment
testing goodwill in IAS 36, Impairment of Assets. Instead, the entire carrying
amount of the investment is tested under IAS 36 for impairment.
All subsidiaries and associates have uniform calendar year ends.
2.3 Segment reporting
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from those of other business segments. A geographical segment is engaged in
providing products or services within a particular economic environment that are
subject to risks and return that are different from those of segments operating
in other economic environments.
2.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Group`s entities are
measured using the currency of the primary economic environment in which the
entity operates (`the functional currency`). The functional currency of the
Group is the Naira. The consolidated financial statements are presented in US
dollars, which is the Company`s presentation currency for the purpose of filing
outside Nigeria.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except
when deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges.
c) Group Companies
The results and financial position of all the group entities (none of which has
the currency of a hyperinflationary economy) that have a functional currency
different from the presentation currency are translated into the presentation
currency as follows:
1 Assets and liabilities for each balance sheet presented are translated
at the closing rate at the date of that balance sheet.
2 Income and expenses for each income statement are translated at average
exchange rates; and all resulting exchange differences are recognised
as a separate component of equity.
3 On consolidation, exchange differences arising from the translation of
the net investment in foreign entities are taken to shareholders`
equity. Upon disposal of part or all of the investment, such exchange
differences are recognised in the income statement as part of the gain
or loss on sale.
3. Earnings per Share
Basic Earnings Per Share (EPS) is calculated by dividing the Profit Attributable
to the equity holders of the Company by the weighted average number of shares in
issue during the period.
2008 2007
Profit attributable to equity holders of the Company 74.23 43.94
($`m)
Average number of shares in issue (millions) 842.04 632.89
Basic Earnings Per Share (cents) 8.82 6.94
Diluted
Profit attributable to equity holders of the Company 74.23 43.94
Weighted average number of shares in issue (millions) 754.07 632.89
Adjustment for Bonus issues 150.81
Weighted average number of shares for diluted Earnings 842.04 632.89
Per Share (millions)
Diluted Earning Per Shares (cents) 8.82 6.94
Headline Earnings Per Share 8.82 6.94
Profit Attributable to equity holders of the Company 74.23 43.94
Adjusted for:
Profit on sale of buildings associated with 0 (5.14)
discontinued operations
Profit/(Loss) on sale of other assets 0 0
Loss on sales of investment in affiliate companies 0 0
Tax thereon 0 1.08
Headline Earnings Per Share attributable to earnings 8.82 6.30
basis (cents)
Headline Earnings Per Share attributable to diluted 8.82 6.30
earnings basis (cents)
Net Assets Per Share (cents) 37.86 49.91
Tangible Assets Per Share (cents) 18.52 15.49
4. Independent audit by the auditors
This condensed consolidated result has been audited by our auditors
PricewaterhouseCoopers who perform their audit in accordance with the
International Standards on Auditing. The results have been reviewed by
PricewaterhouseCoopers whose unqualified review opinion is available for
inspection at the Company`s registered office.
5. Post balance sheet events
There are no significant post balance sheet events that in the opinion of the
Directors will have a material impact on the accounts herein presented.
For and on behalf of the Board
Mr J Adewale Tinubu
Group Chief Executive
5 June 2009
Directorate:
1 Major General M. Magoro (Rtd.) OFR, Galadiman Chairman
Zuru
2 Mr. J. A. Tinubu Group CEO
3 Mr. O. Boyo Deputy Group CEO
4 Mr. B. Osunsanya Group Exec Director
5 Mr. A. Akinrele SAN Director
6 Prince F. N. Atako JP Director
7 Mr. Navaid Burney Director
8 HRM. Oba. A. Gbadebo CFR Director
9 Mr. O. Ibru Director
10 Alhaji H. Mahmud Walin Mubi Director
11 Mr Onajite Okoloko Director
12 Mr. I. Osakwe Director
Company Secretary: Mrs. Oredeji Delano
Registered office: 2, Ajose Adeogun Street, Victoria Island, Lagos, Nigeria
Auditors: PriceWaterhouseCoopers, Plot 252E Muri Okunola Street, Victoria
Island, Lagos
E-mail: info@oandoplc.com
Registered office in South Africa: 1st Floor, 32 Fricker Road, Illovo Boulevard,
Sandton, 2196, South Africa
Office of the South African registrars: Computershare Investor Services
(Proprietary) Limited (Registration number: 2004/003647/07)
70 Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown, 2107
Johannesburg
9 June 2009
Sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 09/06/2009 11:00:02 Produced by the JSE SENS Department.
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