zendi:

But first factor in the Oando power plants of equal MW capacity with transpower which has just reported 37b Q2 PAT, in case you want to say that power plants don't make money.

* Seplat and Oando have roughly equal crude oil capacity.
* Both are heavily indebted, but Oando's debts are heavier.
* On the other hand Oando has power plant and Seplat hasn't.

Total asset minus total liabilities will give you the net asset.


The banks and other financiers have the first claim to the reported power plants and reserves.

The net asset gives a better picture of business

BullBearMkt:

What do you mean by, he's Wale's boy from time?

I just want to say thank you @BullBearMkt

emmanuelewumi:



Total asset minus total liabilities will give you the net asset.


The banks and other financiers have the first claim to the reported power plants and reserves.

The net asset gives a better picture of business

Manie, this bolded remark is same of Dangote Refinery, Seplat and others. What do you think the banks were invented for?
All heavy business operations run on bank funding. Nobody funds acquisitions/businesses on this scale out of pocket.

161 Nigerian Students Fail UK Border Checks, Denied Entrance

https://punchng.com/161-nigerian-students-fail-uk-border-checks-denied-entry/

zendi:

Manie, this bolded remark is same of Dangote Refinery, Seplat and others. What do you think the banks were invented for?
All heavy business operations run on bank funding. Nobody funds acquisitions/businesses on this scale out of pocket.

Half truth

megawealth01:
161 Nigerian Students Fail UK Border Checks, Denied Entrance

https://punchng.com/161-nigerian-students-fail-uk-border-checks-denied-entry/

Is there any stock that are into travels in Nigeria especially students' focused?

megawealth01:
161 Nigerian Students Fail UK Border Checks, Denied Entrance

https://punchng.com/161-nigerian-students-fail-uk-border-checks-denied-entry/

After wasting millions

Agbalowomeri:


After wasting millions

Some sold their investments to fund the trip... Well they will appeal it sha using a good immigration attorney

zendi:

Manie, this bolded remark is same of Dangote Refinery, Seplat and others. What do you think the banks were invented for?
All heavy business operations run on bank funding. Nobody funds acquisitions/businesses on this scale out of pocket.

That is the essence of having a positive net asset and not a negative net asset.

And net debt is not more 3 times of EBIT or operating cash flow

Streetinvestor2:
Can you share the link.What was transcorp power PAT since they have the same capacity. Is the oando power plant linked to the national grid. All my questions here are for sincere purposes because I don't have idea about them

These things are info freely available in the public domain, especially transpower H1 report released a few weeks ago with interim dividend. Pls use your Google.

More money down the drain...

megawealth01:


Some sold their investments to fund the trip... Well they will appeal it sha using a good immigration attorney

emmanuelewumi:



Total asset minus total liabilities will give you the net asset.


The banks and other financiers have the first claim to the reported power plants and reserves.

The net asset gives a better picture of business

The banks and financiers cannot do anything to the power plants and reserves of Oando once Oando is able to repay the loans with interests according to the terms of the agreement. What matters is to generate the revenue and earnings to be able to pay back, and that will come from the power plants and oil production from the reserves.
It is the same principle for all companies including, Seplat.
Most companies doing very well on the NGX also have huge debts but once they meet their loan obligations, no problem.

megawealth01:


The name UNITY will be retained as for the restructuring Mr Time will attend to that...

CBN will most likely have a strict oversight of the bank which is a huge plus for the shareholders and stakeholders

That's interesting because providus seem to be the highest contributor financially amongst the duo so I wonder why unity brand name will be maintained

Know this about real estate investment in Lagos.


https://www.youtube.com/watch?v=32amnAIE7NA?si=rvyPmxJ6BdTEB-ak

ololufemi:


I also strongly feel that the sheeps amongst us are usually the ones with major capital to invest. They have no time for analysis paralysis and just need to engaged to pull the trigger to reap bountiful results.

I know one sheep who was engaged by Meshpip to buy Tesla during Covid-19 irrespective of the bricks and mud thrown during that time. He bought about NGN1,000,000.00 worth of Tesla then and it is worth over NGN500,000,000.00 when you consider the exchange rate changes, stock splits, etc that has happened over the years.

People like Femi Ote$, Alison Dangote, Atedo Peterside, Tony Elumelu, Alhaji Rabiu, etc do not crunch numbers because of their personal deficiencies but they turn out to be like the C and D students in classrooms who create corporations that employ the A and B students.

Let's be able to disagree with others respectfully towards agreeing on the same concept which is to benefit all on this forum. Some potential billionaires dey this forum and na just one single update fit turn am for them.

Ultimately, na all of us go enjoy am and we should remember say nobody don carry all him or her loot go the afterlife o! It is meant to be shared with friends, families, acquaintances and good people with blessed hearts. 🙏🏽

Unless the person was trading (selling high and buying low) I don't see how 1m naira worth Tesla will be 500m naira now. The lowest Tesla sold during COVID was at an average of around 15usd, exchange rate in 2019(covid started in 2019) was around 380. Price of Tesla later peaked at 400usd+. So it should not be worth more than 110m now.
Irrespective it's sad how bad Naija economy and exchange rate has become within just 4 years!!!

Mankind2024:
From a historical perspective, every government in power has tended to devalue the Naira. It would be a miracle or the eighth wonder of the world if the next government after Bola Ahmed Tinubu (BAT) does not devalue the Naira. This is largely due to Nigerians' insatiable appetite for foreign goods, which puts constant pressure on the currency.

This is a simplistic way of looking at it in my opinion.
Nigerias import bill is a speck compared to the import bill of the UK
yet GBP carries more weight than NGN...

it's more than that
the weak productivity and bad culture in Nigeria / Africa is to blame primarily for the currency slide
add short sightedness (not building a proper SWF over the 4 decades plus of economic rent from hydrocarbons beneath our feet)

Imagine how much the naira will stabilise IF we can increase overall economic productivity by 25% in Nigeria

ojeysky:


Unless the person was trading (selling high and buying low) I don't see how 1m naira worth Tesla will be 500m naira now. The lowest Tesla sold during COVID was at an average of around 15usd, exchange rate in 2019(covid started in 2019) was around 380. Price of Tesla later peaked at 400usd+. So it should not be worth more than 110m now.
Irrespective it's sad how bad Naija economy and exchange rate has become within just 4 years!!!

I hope you know there was a shares split in between which later spiked? Just pointing this out.

Mankind2024:
When I mention a paper loss, it doesn't mean I've lost my invested capital. Rather, it's a decline in unbooked profits. A 0.5% to 1% decline in the following stocks typically has a noticeable impact on my portfolio: Transcorp, Transpower, Transhotel, UBA, Afriprudential, and Zenith. This is due to my significant holding position in these stocks.

Noted sir...

My reply was just to highlight to you that the fact that Mr Buffett has observed that most people in today's world treat the market like a casino does not mean he agrees with them or is advising people to do the same... He only highlighted a trend he noticed to be rampant in the market.

This was the point of my reply...

The truth is that the Buffett style of investing does not suit everyone as we all have various backgrounds, sources of income, risk tolerance and various experiences with money.

For some people, the casino approach is ideal for them while the Buffett approach is ideal for others and it is perfectly okay. There are multiple roads that lead into every market...

Jonwest:


I just want to say thank you @BullBearMkt

Thank you too @Jonwest and Happy New Month!

zendi:

Manie, this bolded remark is same of Dangote Refinery, Seplat and others. What do you think the banks were invented for?
All heavy business operations run on bank funding. Nobody funds acquisitions/businesses on this scale out of pocket.

Share prices of all Dangote companies are battered at the moment almost close to 52 week low and have not witnessed major rally but no doubt from next year when the refinery is optimally operational and is listed on NGX, the rally that will be triggered on all Dangotes companies will be unprecedented.

mikeapollo:


The banks and financiers cannot do anything to the power plants and reserves of Oando once Oando is able to repay the loans with interests according to the terms of the agreement. What matters is to generate the revenue and earnings to be able to pay back, and that will come from the power plants and oil production from the reserves.
It is the same principle for all companies including, Seplat.
Most companies doing very well on the NGX also have huge debts but once they meet their loan obligations, no problem.

They have the first claim to the asset of the business.



The bone of contention is assuming the total asset of a business belongs to the business without considering the banks and other financiers who have input to the totsl asset, what belongs to the business is the net asset which you will get after subtracting the total liabilities

Streetinvestor2:
Can you share the link.What was transcorp power PAT since they have the same capacity. Is the oando power plant linked to the national grid. All my questions here are for sincere purposes because I don't have idea about them

This is a very interesting point. It does not seem like their power plants are linked to the national grid, based on my experience while I was at Ebocha.

The surrounding community was using free electricity; nobody paid a dime. The power supply was steady. Also, the gas plant in Omoku was used to power the Ebocha Oil Center operations. As far as I know, these power generating plants are not commercial but used to run the in-house operations and neighboring communities.

If Oando decides to commercialize this power, then it will be a big issue between them and the surrounding communities.

My conclusion is to take the power generating plants out of the equation, as they are not for commercial purposes like those of Geregu and Transcorp.

Don't take my word for it; verify and verify again.

ositadima1:



This is a very interesting point. It does not seem like their power plants are linked to the national grid, based on my experience while I was at Ebocha.

The surrounding community was using free electricity; nobody paid a dime. The power supply was steady. Also, the gas plant in Omoku was used to power the Ebocha Oil Center operations. As far as I know, these power generating plants are not commercial but used to run the in-house operations and neighboring communities.

If Oando decides to commercialize this power, then it will be a big issue between them and the surrounding communities.

So Oando is really buying a liability here. They will soon learn why Eni had to leave. I hope they did their DD well.

Raider76:


So Oando is really buying a liability here. They will soon learn why Eni had to leave. I hope they did their DD well.

I don't know if it's a liability, but I have seen so many people talking about the revenue that will come from power generation alone, throwing numbers around.

They should first check if this generation capacity was generating revenue as an independent entity or if it was just a component of operations.

People have been recommending a stock without revenue for the past 1 year. Their hope is hinged on that if presco or okomuoil could rally that far, the company would rally in no distance time ,since they are all in the same sector. No body was attacked, I even bought into the idea. Oando has revenue and it has prospect too, but some people no gree people wey dey inside drink water and drop their cup in peace. Note, I don't have Oando right now, but the stock has been disappointing naysayers. Every investment is based on hope cos every business comes with uncertainty. E+R=O

Okpai and kwale can't use over 500MW of electricity as they are a small community. I don't know about the installed capacity at the Ebocha center.

ositadima1:



This is a very interesting point. It does not seem like their power plants are linked to the national grid, based on my experience while I was at Ebocha.

The surrounding community was using free electricity; nobody paid a dime. The power supply was steady. Also, the gas plant in Omoku was used to power the Ebocha Oil Center operations. As far as I know, these power generating plants are not commercial but used to run the in-house operations and neighboring communities.

If Oando decides to commercialize this power, then it will be a big issue between them and the surrounding communities.

debeey87:
Okpai and kwale can't use over 500MW of electricity as they are a small community. I don't know about the installed capacity at the Ebocha center.

How much of it is utilized by operations? Here, I mean the surrounding oil processing plants owned by the company.

Nigerialabalaba:

Una don dump Eterna and Tantalizer on people.
I pity d people wey dey follow una bad belle people. If u dey hia and u like no hear word, las las na u dem go chop as breakfast and lunch.

Na so una go dey cast one by one.

After dumping eterna and Tantalizer for ur head, na prestige and cutix dem dey plan to dump for ur head again.

Igi pawpaw oni wo pawa o.

There's no need for emotional outbursts. I'm just contributing my own opinion, since Oando covers more than 70% of every page here.

Unless you don't want me to comment again.

ojeysky:


That's interesting because providus seem to be the highest contributor financially amongst the duo so I wonder why unity brand name will be maintained

Use STB and UBA as case study... Tony was STB you know?