Nigerian bourse probes Oando’s record loss

05 Nov 2015
Chibuike Oguh

Summary

The stock exchange says it is reviewing the delayed filings of Oando’s audited financial statements.

Oscar Onyema, CEO, Nigerian Stock Exchange

The Nigerian Stock Exchange has launched an investigation into the massive losses posted by Oando Plc, the Nigerian oil and gas exploration and distribution company.

The stock exchange says it is reviewing the delayed filings of Oando’s audited financial statements for the 2014 full year and the first three quarters of 2015, according to a statement posted on the website of the stock exchange.

In October, Oando reported that it lost N184 billion in the 2014 full year and N48 billion in the nine months ending on September 30, this year. Oando attributed its losses in 2014 to upstream impairments (N36.4 billion), write-downs (N130.2 billion), and currency devaluation (N7.3 billion). The company’s stock has declined by up to 40 percent since the results were announced.  

The stock exchange says it has invited Oando’s audit committee and external auditors as part of its investigations into the late filings and reported losses. The bourse also says it has reported Oando’s case to the Securities and Exchange Commission. “The Exchange will mete out appropriate sanctions pursuant to its rule,” the statement says.

Chibuike Oguh is Financial Nigeria's Frontier Markets Analyst




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