OANDO Plc has disclosed that it was focusing on aggressive debt reduction and recapitalisation drive to optimise its balance sheet.
According to its Group Chief Executive Officer, Mr. Wale Tinubu, the company had successfully restructured its existing debt through a N94.6 billion medium-term note with a local consortium with lower interest rates and a renewed five-year tenor.
He said the company’s debt has been substantially reduced from over N500 billion in 2014 to N303 billion in the first quarter(Q1) of 2016 and is targeting to bring it down to N100 billion by September 2016.
The company’s Q1 result was welcomed with disappointment by investors and shareholders alike, following the dismal 2015 financial performance, which was significantly impacted by impairments and foreign exchange pressures.
Commenting on the performance, the Oando boss highlighted the company’s drive to ensure profitability going forward.
He said: “This first quarter of 2016 demonstrates our dedication to return our business to profitability by the end of the year. We have implemented constructive corporate initiatives, which are driving forces for our business in this new global reality of economic restraint and lower oil prices in our industry.
“The successful and ongoing implementation of these initiatives reiterates our strategy of growth, deliverables and a return to profitability by the end of 2016.”