Annual reports
Consolidated and separate financial statements 31 December 2021
Oando PLC
Annual reports and consolidated financial statements
For the year ended 31 December 2021
TABLE OF CONTENTS | |||||
Page | Note | Page | |||
Directors and professional advisers | 3 | 9 | Other operating income | 60 | |
Directors' report | 4 | 10 | Expenses by nature of operating profit | 61 | |
Corporate responsibility for financial reports | 7 | 11 | Employees benefit expenses | 61 | |
Statement of directors' responsibilities | 8 | 12 | Finance costs, net | 62 | |
Report of the Audit Committee | 9 | 13 | Income tax expense | 62 | |
Report of the independent auditors | 10-15 | 14 | Basic and diluted profit/(loss) per share | 63 | |
15 | Property, plant and equipment | 64 | |||
Consolidated and separate financial statements: | 16 | Intangible assets | 65 | ||
Statement of profit or loss | 16 | 17 | Right-of-use assets | 67 | |
Statement of other comprehensive income | 17 | 18 | Investment properties | 67 | |
Statement of financial position | 18 | 19 | Investment in associates accounted for | 68 | |
using the equity method | |||||
Statement of changes in equity | 20 | 20 | Deferred income tax liabilities and | 71 | |
deferred income tax assets | |||||
Statement of cash flows | 22 | 21 | Derivative financial assets | 72 | |
Note | 22 | Finance lease receivables | 73 | ||
23 | Non-current receivables | 74 | |||
1 | General information | 23 | 24 | Inventories | 75 |
2 | Basis of preparation | 24 | 25 | Trade, other receivables and contract | |
assets | 75 | ||||
3 | Changes in accounting policies and disclosures | 24 | 26 | Deposit for shares |
4 | Basis of consolidation | 25 | 27 | Prepayments |
5 | Other significant accounting policies | 28 | Financial assets at fair value through | |
profit or loss |
75
76
76
(a) Segment reporting | 28 | 29 | Investment in subsidiaries | 76 | |
(b) Revenue from contracts with customers | 28 | 30 | Short term investments | 77 | |
(c) Property, plant and equipment | 30 | 31 | Cash and bank balances | 77 | |
(d) Intangible assets | 30 | 32 | Discontinued operations and disposal | 77 | |
groups held for sale | |||||
(e) Impairment of non-financial assets | 31 | 33 | Share capital and share premium | 77 | |
(f) Financial instruments | 31 | 34 | Other reserves | 78 | |
(g) Accounting for leases | 33 | 35 | Borrowings | 78 | |
(h) Inventories | 34 | 36 | Decommissioning provisions | 80 | |
(i) Share capital | 34 | 37 | Lease liabilities | 80 | |
(j) Cash and cash equivalents | 34 | 38 | Retirement benefit obligations | 80 | |
(k) Employee benefits | 35 | 39 | Trade and other payables | 81 | |
(l) Provisions | 35 | 40 | Dividend payable | 82 | |
(m) Current income and deferred tax | 36 | 41 | Supplementary cash flows information | 83 | |
(n) Dividend | 36 | 42 | Business acquisition | 84 | |
(o) Upstream activities | 36 | 43 | Related party transactions | 84 | |
(p) Impairment | 37 | 44 | Commitments | 88 | |
(q) Non-current | 37 | 45 | Events after the reporting period | 88 | |
(r) Production underlift and overlift | 37 | 46 | Contingent liabilities | 90 | |
(s) Fair value | 37 | 47 | Subsidiaries' information | 92 | |
(t) Offshore processing arrangements | 38 | 48 | Financial instruments by category | 93 | |
(u) Investment properties | 38 | 49 | Upstream activities | 95 | |
(v) Contingent liabilities | 38 | 50 | Going concern | 96 | |
(w) Contingent assets | 39 | Other National Disclosures: | |||
6 Significant accounting judgements, estimates and | 39 | (i) Value Added Statement | 98 | ||
7 | Financial risk | 42 | (ii) Five-Year Financial Summary (2017 - | ||
management | 2021) | 99-100 | |||
8 | Segment information | 57 |
Page 2 of 100
Oando PLC
Directors and Professional Advisers
For the year ended 31 December 2021
Directors | HRM. Oba Adedotun Gbadebo, CFR | (Chairman, Non-Executive Director) |
Mr. Jubril Adewale Tinubu | (Group Chief Executive) | |
Mr. Omamofe Boyo | (Deputy Group Chief Executive) | |
Mr. Olufemi Adeyemo | (Group Chief Financial Officer; Executive Director, Resigned February 18, 2022) | |
Mr. Muntari Zubairu | (Group Chief Corporate Services & Operations Officer; Executive Director, Resigned December 23, | |
2021) | ||
Dr. Ainojie Alex Irune | (Group Executive Director- Appointed August 9, 2019) | |
Mr. Tanimu Yakubu | (Non-Executive Director) | |
Mr. Ike Osakwe | (Non-Executive Director) | |
Mr. Ademola Akinrele, SAN | (Non-Executive Director) | |
Alhaji Bukar Goni Aji | (Non-Executive Director, Resigned December 23, 2021) | |
Mrs. Ronke Sokefun | (Non-Executive Director, Appointed December 23, 2021) | |
Mrs. Fatima Mede | (Non-Executive Director, Appointed December 23, 2021) | |
Company Secretary and | Ayotola Jagun (Ms) | |
Chief Compliance Officer | ||
Registrars | First Registrars and Investor Services Limited | |
Registered Office | 17a The Wings Complex, Ozumba Mbadiwe Avenue | |
Victoria Island, Lagos | ||
Auditors | BDO Professional Services | |
(Chartered Accountants) | ||
ADOL House | ||
15, CIPM Avenue Central Business District, | ||
Alausa, Ikeja | ||
Lagos, Nigeria. | ||
Bankers | Access Bank PLC | |
The Access Bank UK Limited | ||
AfreximBank | ||
Bank of Montreal Canada | ||
Ecobank Nigeria PLC |
Ecobank Sao Tome e Principe
Emirates NBD
Fidelity Bank Plc
First Bank Nigeria Limited
First City Monument Bank Plc (FCMB)
Globus Bank Limited
Guaranty Trust Bank Plc
Heritage Bank PLC
ING Bank
Investec Bank
Keystone Bank Limited
The Mauritius Commercial Bank Limited
National Bank of Fujairah (NBF)
Providus Bank Plc
Stanbic IBTC Holdings PLC
Standard Bank of South Africa Ltd
Sterling Bank Plc
Suntrust Bank Nigeria limited
Union Bank of Nigeria PLC
United Bank for Africa PLC
United Bank for Africa, New York
Zenith Bank PLC
Page 3 of 100
Oando PLC
Directors' report
For the year ended 31 December 2021
The directors submit their Report together with the audited consolidated and separate financial statements for the year ended 31 December 2021, which disclose the state of affairs of the Group and Company.
1 Principal Activity
The principal activity of Oando PLC ("the Company") locally and internationally is to have strategic investments in energy companies in addition to supply of oil and gas products to customers. The Company was involved in the following business activities during the year reviewed:
- Exploration and production (E & P) - Oando Energy Resources Inc., Canada, engaged in production operations and other E & P companies operating within the Gulf of Guinea; and
- Supply and trading of petroleum products - Oando Trading Dubai, Oando Trading Bermuda and Oando PLC.
The Company's registered address is 17a The Wings Office Complex, Ozumba Mbadiwe Avenue, Victoria Island, Lagos, Nigeria.
2 Results
The Group's net profit for the year of N35.8 billion and Company's net loss of N28.1 billion attributable to owners of equity have been transferred to retained earnings.
Group | Company | |||
31-Dec-21 | 31-Dec-20 | 31-Dec-21 | 31-Dec-20 | |
N'000 | N'000 | N'000 | N'000 | |
Revenue | 803,460,186 | 477,070,471 | 714,455,776 | 320,702,465 |
Profit/(loss) before income tax from operations | 44,474,275 | (134,282,770) | (26,282,712) | (44,507,463) |
Income tax expense | (11,615,476) | (6,391,693) | (1,841,684) | (801,756) |
Profit/(loss) for the year from operations | 32,858,799 | (140,674,463) | (28,124,396) | (45,309,219) |
Profit/(loss) attributable to owners of the parent | 35,817,370 | (118,149,391) | (28,124,396) | (45,309,219) |
- Dividend
The directors do not propose dividend for the year ended 31 December 2021 (2020: nil).- Directors
- The names of the present directors and those that served during the year are listed on page 3.
- According to the Register of Directors' Shareholding, the interests of directors in the issued share capital of the Company for the purposes of section 30 part 1 of schedule 5 of the Companies and Allied Matters Act, 2020, are as follows:
Direct | Indirect | |
HRM. Oba A. Gbadebo, CFR | 437,500 | Nil |
Mr. Jubril Adewale Tinubu* | Nil | 3,670,995 |
Mr. Omamofe Boyo* | Nil | 2,354,713 |
Mr. O. Adeyemo | 1,723,898 | Nil |
Mr. Muntari Zubairu** | 1,000,000 | Nil |
Dr. Ainojie Alex Irune | Nil | Nil |
Alhaji Bukar Goni Aji ** | Nil | Nil |
Mr. Ademola Akinrele | 96,510 | Nil |
Mr. Ike Osakwe | 139,343 | Nil |
Mr. Tanimu Yakubu | 5,999,947 | 5,998,700 |
*Additional shares: Ocean and Oil Investments Limited (OOIL) owns approximately 75,000,000 (0.61% of total number of shares) shares in the Company. Mr. Jubril Adewale Tinubu and Mr. Omamofe Boyo own 0.34% and 0.13% respectively in the Company through OOIL.
*Ocean and Oil Development Partners Limited (OODP) owns 7,131,736,673 shares (representing 57.37% of the total number of shares) in the Company. OODP is ultimately owned 66.67% by the Group Chief Executive and 33.33% by the Deputy Chief Executive of the Company at year-end.
**Alhaji Bukar Goni Aji and Mr. Muntari Zubairu represented the interest of Alhaji Dahiru Bara'u Mangal. Alhaji Dahiru Bara'u Mangal owned 15.92% of Oando PLC before the investment was acquired by Leaf investment effective October 2021.
Page 4 of 100
Oando PLC
Directors' report (cont'd)
For the year ended 31 December 2021
-
Contracts
In accordance with section 303 of the Companies and Allied Matters Act, 2020 and Article 115 of the Company's Articles of Association, directors who had interest in contracts during the year had notified and declared their interest to the Company to the effect that they were members or held shareholding of companies which could be regarded as having an interest in the contract. Such directors' interests are noted in the respective minutes of board meetings. - Directors' Responsibilities
The directors are responsible for the preparation of annual consolidated financial statements, which have been prepared using appropriate accounting policies, supported by reasonable and prudent judgements and estimates, in conformity with International Financial Reporting Standards issued by the International Accounting Standards Board, Companies and Allied Matters Act, 2020 and the Financial Reporting Council of Nigeria Act No 6, 2011. In doing so, the directors have the responsibilities as described on page 8 of these consolidated financial statements. - Shareholdings
As of 31 December 2021, the range of shareholdings of the Company was as follows:
No of | ||||||||||||
Range of Shareholding | Shareholders | % of | No of shares | % of | ||||||||
Within Range | Holders | Within Range | Shareholding | |||||||||
1 | - | 1,000 | 168,614 | 62.55 | 61,397,663 | 0.49 | ||||||
1,001 | - | 5,000 | 71,151 | 26.40 | 148,489,453 | 1.19 | ||||||
5,001 | - | 10,000 | 11,820 | 4.39 | 85,413,747 | 0.69 | ||||||
10,001 | - | 50,000 | 12,585 | 4.67 | 277,082,867 | 2.23 | ||||||
50,001 | - | 100,000 | 2,219 | 0.82 | 160,326,469 | 1.29 | ||||||
100,001 | - | 500,000 | 2,386 | 0.89 | 506,660,582 | 4.08 | ||||||
500,001 | - | 1,000,000 | 368 | 0.14 | 266,121,515 | 2.14 | ||||||
1,000,001 | - | 5,000,000 | 334 | 0.12 | 657,831,396 | 5.29 | ||||||
5,000,001 | - | 10,000,000 | 43 | 0.02 | 291,370,453 | 2.34 | ||||||
10,000,001 | - | 50,000,000 | 25 | 0.01 | 530,125,719 | 4.26 | ||||||
50,000,001 | - | 100,000,000 | 3 | 0.00 | 239,827,594 | 1.93 | ||||||
100,000,001 | - | 12,431,412,481 | 4 | 0.00 | 9,206,765,023 | 74.07 | ||||||
269,552 | 100.00 | 12,431,412,481 | 100.00 |
- Property, Plant and Equipment
Changes in the value of property, plant and equipment (PPE) were mainly due to additions, depreciation, disposals and exchange differences as shown in Note 15 to these consolidated financial statements. In the opinion of the directors, the market value of the Group's property, plant and equipment is not lower than the value shown in these consolidated financial statements. - Donations/charitable gifts
The Company through its subsidiary, Oando Foundation, made most of the following donations during the year under review:
Description | Amount | |
N | ||
I | Scholarship award for 195 pupils across 22 states and the FCT | 8,410,000 |
II | Environmental & recycling education awareness project tagged 'Clean Our World' in 12 public primary schools | 25,166,087 |
III | Distribution of food relief materials to 1,065 households across vulnerable communities in Lagos State | 16,961,970 |
IV | Donation - PSAG Website Domain renewal | 60,033 |
V | Sponsorship of Interpol Week Conference | 3,500,000 |
VI | Sponsorship of the 15th Annual International Business Law Conference of the Nigerian Bar Association Section on | |
Business Law | 1,000,000 | |
55,098,090 |
Page 5 of 100
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Oando plc published this content on 18 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 September 2023 09:39:05 UTC.