The Nigerian Stock Exchange has invited
Oando Plc’s audit committee and its external auditors as part of the
review of the delayed filing of the audited financial statements of the
firm for the year ended December 31, 2014 as well as its results for the
first and second quarters of 2015.
In a notice on the “review of the
situation of Oando Plc,” the NSE said the company had been sanctioned
for violations of its post-listing obligations in accordance with
applicable rules of the Exchange.
“Should the Exchange’s continuing review
reveal that Oando committed other infractions, the Exchange will mete
out appropriate sanctions pursuant to its rules,” it said, adding that
it had reported the situation to the Securities and Exchange Commission
and would involve other stakeholders as appropriate.
The review comes at a tough time for
Oando, which recently reported a record N184bn loss after tax for the
2014 financial year, triggering a massive fall in its share price. As of
Friday, five trading days after the release of the results, the
company’s share price had declined by 39.65 per cent, with its market
capitalisation falling by N47.536bn to N72.328bn from N119.864bn.
The oil and gas firm had filed its
audited results for 2014 as well as its results for the first and second
quarters of 2015 until October 23, long after the regulatory due date.
It also reported significant losses in the first three quarters of this
year.
The Exchange, which said it was greatly
concerned about the delayed filings and the significant losses reported
by the company, explained that “Oando’s filing of its audited financial
statements followed several engagements with the Exchange, both before
and after the due dates for these filings.”
As part of the engagements, Oando’s top
management, based on the directive of the Exchange, met with the dealing
clerks on the trading floor of the Exchange on October 23, 2015 and
held a ‘facts behind the figures’ session on October 26, where it
explained the reasons for the losses.
The oil and gas company attributed the
2014 loss to upstream impairments (N36.4bn), writedowns (N130.2bn); and
currency devaluation (N7.3bn).
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