Oando Highlights Important of Dividend Payment Out

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GCEO, Oando Plc, Wale Tinubu Logo
Group Chief Executive Officer, Oando Plc, Wale Tinubu, said he has learnt lesson of dividend payments regularly, therefore, promised investors of high dividend payout going forward as the rights issue to rake in N54.6 billion.
Speaking during the Facts-Behind-the-Figures presentation to the management of the Nigerian Stock Exchange (NSE) and stock market community in Lagos, Monday, the company’s cash flow would improve going forward and would lead to higher dividend payout, Tinubu said.
He said, management had a strategy in place to enhance value for shareholders through a balance sheet optimism that would lead to a reduction in debt and improvement in earnings.
“The major mistake that shareholders did not receive dividends for 2011 instead of terminates a management service agreement with Ocean and Oil and retained money in the company acct to pay cash dividends to shareholders”.
Tinubu with his usual character swivel out sympathetic words, as he put it “I have realized that by not paying a dividend, as market is unforgiving, we were punished, which affected our share price. But going forward, our forecast will base on first line charge of our earnings as dividends. He admonished investors to take advantage of our share price which is grossly undervalued. Our downstream assets would begin to yield significant earnings and this will impact our performance going forward,”
GCEO revealed that the proceeds from the rights issue would assist the company to executive its growth strategy which may comes from sell off some business units.
Market community embraced Oando plc the Facts-Behind-the-Figures presentation at NSE floor of exchange with a lot of promises of bright future as share price jumped to close at N14.20 per share from N14.00 per share on previous day before the event.


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