[Nigeria] Oando announces earnings guidance for H2 2016

Oando expects to report materially lower earnings for the second quarter of 2016 due to the impact of the Naira devaluation against the US dollar (“USD”), resulting in unrealized foreign exchange losses. This announcement is based on the unaudited financial statements for the period ended 30th June 2016.

The impact of the Naira devaluation by the Central Bank of Nigeria (“CBN”) is expected to amount to an unrealized foreign exchange loss arising from USD denominated liabilities, outstanding bank trade facilities as well as vendor payables. As at the time of the devaluation the company had USD denominated borrowings of ~$261 Million in Naira dominated earnings businesses, consisting of ~$68 Million in core loans, $89 Million in bank trade facilities, ~$83 Million in Asset Financing and $21 Million in other payables. A circa 40% devaluation in the value of the Naira against the US dollar from the bank rate of N199.00:$1.00 to N280.00:$1.00, has effectively resulted in these significant foreign exchange losses which have been prudently booked into its financial statements.

Despite the challenging operating landscape in 2016, Oando reiterates its focus of returning the Group to profitability by growing its dollar earning higher margin upstream and export trading businesses, which will not be impacted by the volatility of Foreign Exchange rates to the Naira. Oando remains confident in its diversified business model and the long-term prospects for growth in Nigeria and beyond.

Further details of the Group’s financial performance will be disclosed when the Half Year unaudited financial results are announced and during the subsequent results conference call.

www.oandoplc.com