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Energia, Oando JV Deliver Multibillion Naira Infrastructural Projects to Host Communities in Delta State

Oando Energy Resources, (a subsidiary of Oando PLC) one of Nigeria’s leading indigenous oil producers and Energia Limited, the Operator of their Joint Venture – Ebendo/Obodeti Marginal Field (OML 56), on Monday December 3, 2018, commissioned and handed over multi-billion Naira infrastructural projects

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L-R: Leste Aihevba, Managing Director, Energia; George Osahon, Chairman, Board of Directors, Energia; Adaeze Moedo, Representative of Zonal Controller, Department of Petroleum Resources; Friday Ozobeme, President General, Emu Ebendo Community; Freeman Fregene, Commissioner for Oil and Gas, Delta State; and Kofo Tunji- Olagunju, General Manager, External Relations, Oando Energy Resources, during the commissioning of the Ebendo Community Modern Housing Estate, among other projects by the Energia/Oando Joint Venture in Delta State on Monday, December 3, 2018.

Oando Energy Resources, (a subsidiary of Oando PLC) one of Nigeria’s leading indigenous oil producers and Energia Limited, the Operator of their Joint Venture – Ebendo/Obodeti Marginal Field (OML 56), on Monday December 3, 2018, commissioned and handed over multi-billion Naira infrastructural projects to six host communities in Kwale, Ndokwa West Local Government Area, Delta State.

The projects include a newly built health centre; housing estate; fully furnished community town hall; two new and fully furnished palaces; an integrated drainage system and roads and rural electrification for the benefit of the communities of Ebendo, Obodougwa, Umusam, Isumpe, Umusadege and Ogbeani.

The projects are an actualisation of the promises made by the Joint Venture in an agreed Memorandum of Understanding (MoU) with the host communities for the exploration and operations of the Ebendo/Obodeti oil field. These newly commissioned projects are in addition to the 35 other social and infrastructural projects worth over N2 billion delivered over a 10 year period in line with the MoU. Projects have included the Ebendo Community Ultra-Modern Market, the Isumpe Community fully furnished Ultra-Modern Town Hall, and the provision of community buses and a robust Welfare Programme through a Trust Board for elderly community members.

Speaking at the December 3 commissioning, the Governor of Delta State, Senator Ifeanyi Okowa, represented by the Honourable Commissioner for Oil and Gas, Hon. Freeman Fregene, said; “The existence of Oando and Energia has brought rapid developments to these host communities. The performance of these companies reflects on the developmental strides of the communities and it is worth emulating at all levels”, he said.

From inception the mission of the JV partnership has been to effectively drive the rapid and sustained development of its host communities. To do this they put aside a percentage of their gross production revenue for diverse community development projects. In 2009, they established the Community Trust Fund (CTF) Board, consisting of representatives from Oando, Energia and the host communities.

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So far, the CTF has spent N2 billion on over 35 infrastructural projects across the Emu Ebendo, Oboduguwa, Umusam, Isumpe, Ogbeani and Umusadege communities. These have included 9 road and drainage projects, 7 town halls and palaces, 6 educational facilities, 5 electrification projects, 4 elders’ welfare projects, 3 youth and women empowerment projects, healthcare facilities, markets, housing estates, transportation systems, security and landscaping projects.

Commenting, the Chairman, Energia Limited, Mr. Geroge Osahon, said, “The implementation of the Memorandum of Understanding based on mutual agreement on the initiation and implementation of projects has brought meaningful and measurable development to the communities and in turn a peaceful environment for operations for the Joint Venture”.

Also commenting the General Manager, Government Relations, Oando Energy Resources, Kofo Tunji-Olagunju stated; “At Oando, we believe it is our corporate social responsibility as a proudly Nigerian company, to give back to our host communities and promote sustainable development.

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Our mantra is that we must leave all our host communities better off than we met them. In this light, we have earmarked more impactful projects to further upgrade the quality of living in the communities. Plans are in advance planning stage for the upgrade of Kwale General Hospital into a fully functional referral hospital which will provide improved health care delivery services to the communities within the Ndokwa West Local Government Area.”

NM Partners represent articles published in paid partnerships with corporate organisations. They include press releases, targeted content, and other forms of corporate communications on behalf of our Paid Partners.

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Companies

Fidelity Bank to raise N50 billion in bonds in Q4 to refinance existing debts

The new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.

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Fidelity Bank Plc ,CEO Nnamdi Okonkwo, Fidelity Bank Plc growth plan, SMEs funding

One of Nigeria’s second-tier commercial banks, Fidelity Bank Plc, has concluded plans to issue up to N50 billion ($131.3 million) in local bonds by the fourth quarter of 2020, in order to refinance existing debts as the yields drop.

The disclosure was made by the Chief Operations and Information Officer, Gbolahan Joshua, during an analyst call on Tuesday, September 8, 2020.

The crash of crude oil price globally, which was triggered by the novel coronavirus pandemic, has led to a decline in bond yields on the local debt market. This has made foreign investors to dump their local assets, leaving excess liquidity in the money market. This has also put a lot of pressure on the foreign exchange market as they look for dollars to repatriate their funds.

READ: Guinness Nigeria finding it hard to refinance its loans due to dollar scarcity

The Fidelity Bank top executive disclosed that the new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.

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The global economic situation has seen yields in the debt market drop from as high as 18% about 3 years ago to less than 5% for the one-year treasury bill.

READ: GTBank, Zenith Bank, UBA record losses, investors down by N12.2 billion

Fidelity Bank had revealed that it expected to see a 15% drop in profit this year when compared to 2019 result due to the coronavirus pandemic. Its profit after tax increased by 21.9% to N12 billion for the half-year 2020.

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The second-tier bank also disclosed that its income declined in the second quarter due to a downward review of lending rates on loans as a result of the economic downturn.

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Companies

Heineken buys more units of Nigerian Breweries Plc

The Dutch firm has invested N276 million in NB since August, to increase its stake in the Brewer by 0.10%.

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Heineken scoops more Nigerian Breweries shares in insider disclosure

The major shareholder of the largest brewer in Nigeria, Heineken Brouwerijen B.V, has increased its stake in Nigerian Breweries, with the purchase of 233,110 additional units of Nigerian Breweries shares. This was disclosed by the company in a notification sent to the Nigerian Stock Exchange, which was seen by Nairametrics.

According to the notification, which was signed by the Company’s Secretary, Uaboi G. Agbebaku, the purchase was made on the bourse over two transactions on the 2nd and 3rd of September.

This disclosure is a regulatory requirement that must be reported to the Nigerian Stock Exchange, especially when a major shareholder or director of a publicly quoted company purchases shares in the company they own.

READ: GTBank revenue for H1, 2020 rises to N225.14 billion

The analysis of these transactions indicates that the purchase consideration for the 233,110 additional units of Nigeria Breweries shares at an average price of N39.94 is put at N9.3 million.

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This purchase and previous purchases further cement Heineken Brouwerijen B.V’s status as a major shareholder; the company has accumulated a total of 7,720,236 since 30th June.

READ: Vitafoam’s 2020 oncourse to make light–work of 2019

As of June 30th, when Nigerian Breweries released its Half-year financial results and reviewed its shareholding pattern, the company had exactly 7,996,902,051 outstanding shares, with Heineken Brouwerijen B.V being the majority shareholder with 3,019,363,804 units, which amount to 37.76% of the total shares of the company outstanding. 

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Hence, with the current purchase of 233,110 additional units, and previous purchases in August and September 1, which amount to 7,487,126 units, Heineken’s ownership percentage of Nigeria Breweries is now put at 37.85%.

Insider transactions, both sales and purchases, are often an indication of how shareholders perceive a company’s valuation. It could also mean a possible capital raise or that the majority shareholders are strengthening their existing holdings.

READ: Heineken scoops more Nigerian Breweries shares in insider disclosure

In like manners, the purchase of the shares of Nigerian Breweries by Heineken and other majority shareholder has mopped up stray volumes on the bourse, and pushed the stock price higher by 29% or N9, from N31 it closed at on the 3rd of August to its current value of N40 with 38.2x earnings.

About the company

Nigerian breweries is the largest brewing company in Nigeria. It engages in the brewing and marketing of lager beer, stout and non-alcoholic malt drinks, and the bottling of the Schweppes range of soft drinks and Crush Orange. Its brands include Star, Gulder, Legend, Heineken, Maltina, Amstel Malta, Fayrouz, Climax, Goldberg, Malta Gold, and Life. These products are mainly sold in Nigeria and other neighbouring countries.

READ: Flour Mills and its diverse challenges

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Key takes on NB’s financials

Nigerian Breweries was affected by the disruption in the global and domestic demand and supply chain, as profit after tax of the largest brewer dropped by as much as 58%, at the back of the adverse impact of the sharp contraction in economic activities.

The knock-on effect of the COVID-19 lockdown, which affected the trade segment of the business, affected the company sales and this triggered the 11% drop in revenue in the first half of the year.

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Companies

Nestle’s parent company increases stakes in Nestle Nigeria in August

The purchase consideration for the 748,047 additional shares at an average price of N1,174.74 is put at N878.8 million. 

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Nestle releases FY financial statement for 2019, proposes huge dividend, Nestlé S.A buys additional shares of Nestlé Nigeria worth N287 million

Nestle S.A, Switzerland, the parent company of Nestle Nigeria Plc and the majority shareholder of the company, has increased its stake in the Nigerian subsidiary, as it purchased about 748,047 additional shares in August.

This was disclosed by the company in a notification sent to the Nigerian Stock Exchange, which is seen by Nairametrics.

According to the document, which was signed by the Company’s Secretary, Bode Ayeku, the purchase was made on the bourse over two transactions on 20th and 26th of August. 

This disclosure is a regulatory requirement which must be reported to the Nigerian Stock Exchange, especially when a major shareholder or director of a publicly quoted company purchases shares in the company they own.

The analysis of this development shows that the purchase consideration for the 748,047 additional shares at an average price of N1,174.74 is put at N878.8 million. 

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Importantly, this purchase increases the ownership percentage of Nestle S.A, this adds significantly to the multinational’s investment in the company as the parent company now owns 66.27% of Nestle Nigeria Plc.

The 66.27% ownership share of Nestle S.A. total amounts to 525, 307, 504 ordinary shares worth N617 billion out of the 792, 656, 252 shares outstanding.

Meanwhile, insiders’ transactions both sales and purchases are often an indication of how shareholders perceive the company’s valuation. It could also mean a possible capital raise or the majority shareholders strengthening their existing holdings.

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About the company

Nestlé Nigeria PLC is one of the largest food and beverage companies in Africa. Nestlé Nigeria Plc engages in the manufacturing, marketing and distribution of food products including purified water. It also exports some of its products to other countries within Africa.

It has three product segments: Food, Beverages and seasoning. The Food segment engages in the production and sale of Cerelac, Nutrend, Nan, Lactogen and Golden Morn. The Beverages segment engages in the production and sale of Milo, Chocomilo, Nido, Nescafe and Nestlé Pure Life. While the seasoning segment engages in the sale of Maggi cubes.

Key takes on Nestle financials

Nairametrics had earlier published after perusing through the company’s half-year unaudited financial report that the increase in the cost of sales, Administrative expenses, low finance income coupled with high costs coloured the bottom line of the company as earnings per share dipped from N33.11 to N27.53.

This shows the knock-on-effect of the pandemic on a giant like Nestle, despite grappling hard to keep revenues flat year on year, the increase in key costs still ebbed earnings. 

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