The Managing Director of Oando has assured investors that the company forecast a dividend payout of 50% of Profits following their just concluded rights issue. The company did not pay dividends last year, a move that saw its share price plummet.
?By not paying a dividend, we were punished, which affected our share price. Going forward, our forecast sees us paying 50 per cent of our earnings as dividends. It is therefore a wise thing for investors to take advantage of the our share price which is grossly undervalued. Our downstream assets would begin to yield significant earnings and this will impact our performance going forward,? Tinubu?
The N54.6billion rights issue which has been concluded brought in a net offer cost of N52.9billion with about N27.78 (53%) of it used for refinancing upstream assets. Oando has faced thin margins over the past years as interest payments and operating cost ate deep into revenues.