Nigeria’s Oando to raise fresh capital
Oil company wants to repay its debts and make more acquisitions
Lagos — Nigerian oil company Oando aims to raise fresh capital over the next two years and repay debt used to acquire Conoco Phillips’ Nigerian assets, its CEO Adewale Tinubu said . Oando has transformed itself in the past few years from a fuel retailer to oil producer and now competes with multinationals such as Shell and ExxonMobil, but its growth has been largely built on debt. It bought Conoco Phillips’ Nigerian assets for $1.5bn in 2013, but high financing costs, coupled with lower oil prices hit profit, leaving it unable to repay its debt. It has posted losses including a record $1.10bn loss in 2014. Tinubu said Oando has paid more than 77% of the acquisition debt and plans to pay off the rest in 12 months, which would allow it to resume dividend payments. He said Oando would be left with total debt of $300m. Oando’s growth plan is to continue to pursue acquisitions as multinational oil companies sell assets, Tinubu said, but added that he would take on new deals after paying ...
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