Oando Plc has been selling off assets in the last two years as it embarks on a massive restructuring of its operations and cash flows. Gone are the days where grandiose spending was tolerated especially by Oil companies splurging on the back of higher crude oil prices.
In its 2018 First Quarter results, Oando reported that it has sold its 2009 Bombardier model BD-100-1A10 (Challenger 300) aircraft for $6.6 billion. Unconfirmed reports suggest the Jet was once thought to be used frequently by President Buhari during the 2015 election campaign.
Here is an excerpt of the disclosure as reported in its interim results.
On Feb 27, 2018, a subsidiary of Oando PLC, Churchill Finance C300-0462 Limited, sold its 2009 Bombardier model BD-100-1A10 (Challenger 300) aircraft with Registration number T7-GOB to Genmark Ventures, LLC for a consideration less cost to sell of $6.6bn. The transaction, which has been accounted for as a sale of PPE, gave rise to a loss of N412mn. The loss has been recognised in these unaudited consolidated financial statements.
Here is a picture image just in case you are wondering if there was a typo from Nairametrics.
Is the amount correct?
We believe they meant to write $6.6 million and thus attribute this to a typo as they probably meant to write “million” instead of “billion”. To be sure, we fact-checked the price of the aircraft and it sells on average of $6.8 million.
Jesus said take my yoke and I will refresh you. I have to be careful of rumour monger.
A company which tolerates such a heinous mistake on their Financial Statements ought to be avoided with a 10 foot long stick 😀
Companies like this can go to any length to cover their mess, I think it’s better to stay far off. It’s criminally