Nairametrics| Wale Tinubu CEO of Oando Plc, said the company was considering raising N40 billion in fresh capital. He made this statement yesterday at the company’s facts behind the figures event at the Nigerian Stock Exchange (NSE). Oando had also signed a Memorandum of Understanding (MOU) with the federal government to run, operate and maintain the Port Harcourt refinery. Minister of state for petroleum Ibe Kachikwu had earlier this week stated that Agip was involved in the repairing of the Port Harcourt refinery, and had plans to construct a new one in Port Harcourt or Brass.
The Port Harcourt refinery was established in 1965 at Eleme with an initial capacity of 60,000 barrels per day, and an extension was built in 1985 with a capacity of 150,000 barrels per day. The combined capacity of 210,000 barrels per day has made it the largest refinery in the country. Age and poor maintenance have led to a drop of both the Port Harcourt refinery and the two other refineries owned by the federal government. Data from the monthly operational and financial report by the NNPC showed the Port Harcourt refinery had a 38.5% capacity utilization rate In January 2017.
The news may have been responsible of the recent rally in the company’s shares on the Nigerian Stock Exchange (NSE). Year to date, Oando shares have risen over a 30% outperforming the Nigerian Stock Exchange (NSE) All Share Index which is up 5.75%. First quarter 2017 results by Oando saw a 116% increase in turnover from N63.9 billion in 2016 to N138.4 billion in 2017. Profit before tax increased 207% from a loss of N461 million in 2016 to a profit of N494 million in 2017.