KarlTom:
I don't think they are going to decommission any of NAOC assets.

The provisions are meant to provide required funds for the eventual decommissioning of the assets in future, even if in 20 years time from now.
It is an industry requirement or standard that players in the upstream sector must comply with, because the decommissioning costs can be very huge and it is better they make adequate provisions long before the actual time/year the costs are incurred or expended

KarlTom:
I don't think they are going to decommission any of NAOC assets.

The decommissioning (and abandonment) provision of the PIA 2021 provides for funds to be ‘reserved’ for that purpose in the future at the end of the asset life, not to be decommissioned immediately. All the divesting entities Mobil, Shell, Agip have old and aging assets like QIT terminal in Eket, Bonny terminal, and Brass terminal, which is why the regulator is insisting before approving.

mikeapollo:


The provisions are meant to provide required funds for the eventual decommissioning of the assets in future, even if in 20 years time from now.
It is an industry requirement or standard that players in the upstream sector must comply with, because the decommissioning costs can be very huge and it is better they make adequate provisions long before the actual time/year the costs are incurred or expended

Couldn’t have said it better, thank you!

Tpharell:

While I have not seen anything empirical that shows Oando was favored against Seplat and Renaissance in the ongoing divestment, and nothing shows president Tinubu has any direct interest in Oando which was founded even before he became governor in 1999, you cannot pretend or discount the reality of how Nigeria works. People own companies by proxy in a manner that the ‘veil cannot be lifted’. It will be downright and gravely delusional to not consider that Wale Tinubu who has direct access to the president (a blood relative) can very easily call in a favor for Oando and the weak regulatory bodies will read the body language coming out of the villa and do the needful.

Fair comment.

Please let us continue with the education on happenings in the energy sector (not only about Oando and Seplat).
I am learning a lot.
Kudos to all the contributors.

KarlTom:
I don't think they are going to decommission any of NAOC assets.

All assets will be decommissioned at the end of their service life. The provisions are just setting aside money for this when they occur in future. So that assets will not pose danger to people when they are no more in use for operations.

yMcy56:

Mega, check your mail and reply....
You asked one question here but I replied thru mail, seems you didn't check it.

Already checked
Can't see it. Maybe you resend it

mikeapollo:


The provisions are meant to provide required funds for the eventual decommissioning of the assets in future, even if in 20 years time from now.
It is an industry requirement or standard that players in the upstream sector must comply with, because the decommissioning costs can be very huge and it is better they make adequate provisions long before the actual time/year the costs are incurred or expended

meaning its not cash outflow yet? (please correct me if i am wrong). Hence it just an accounting treating like depreciation, which is only expended (becomes an outflow) when the actual event (decommissioning) happened, but it is yearly charged against profit?

BabsO2:




On your quoted Investopedia picture, I don't think (I am not sure as I rely only on their published financial statements - perhaps another media hype) the plc is insolvent as it still meets its payments to lenders. Also, it generated a positive cashflow from operations in the unaudited 2023 FY published. Infact its cash balance grew in 2023 after cashflow payments to lenders and cashflow out for investment activities, suggesting a turnaround has commenced. Looking closely at the make-up of liabilities a sizeable amount is provision for expected settlements that arose in 2023 plus also provisions for decommissioning activities. If one looks at quarter on quarter perhaps one will have a better clue at that provision to see if there is possibility for the final amount coming out higher or smaller. Also, Oando appears prudent for putting provisions for decommissioning activities in its liabilities. It is worth cross-checking if other local oil production companies like SEPLAT and ARADEL have provisions for decommissioning activities and to understand what exactly the provisions are for.

This is not a warning or Sell or Buy recommendation. But a discuss. Oando may fall or rise in price.

My point isn't even about the price movement of oando. They should release the results instead of always rushing to the media for PR or MEDIA HYPE

I don't even check their price as what is more important is their financials being a public institution. The public needs to know

Tpharell:

While I have not seen anything empirical that shows Oando was favored against Seplat and Renaissance in the ongoing divestment, and nothing shows president Tinubu has any direct interest in Oando which was founded even before he became governor in 1999, you cannot pretend or discount the reality of how Nigeria works. People own companies by proxy in a manner that the ‘veil cannot be lifted’. It will be downright and gravely delusional to not consider that Wale Tinubu who has direct access to the president (a blood relative) can very easily call in a favor for Oando and the weak regulatory bodies will read the body language coming out of the villa and do the needful.

Let me also add that Oando had an advantage over the other divesting entities that could have played into their sealing their deal before others.
Being already a participant in the JV with 20% acquired from ConocoPhillips a decade ago, they added Agip’s 20% state in the JV and became the operator. So the JV was already familiar terrain for them even before the divestment, unlike Seplat who has never participated in the Mobil JV they seek to acquire now

megawealth01:
Already checked
Can't see it. Maybe you resend it

You asked and i replied since 23rd Aug.
Check again.

mikeapollo:


I suspect FBNH will be coming to raise capital.
Expect UBA soon after FBNH

A power play is still ongoing in FBNH, difficult to forecast timing of their capital raise. However, I forecast they'll wait till next year especially UBA.
it's better they wait for a year while dishing out better dividends to excite investors, while proving they have gone up a notch in financial strength. They can only prove this through increased dividend payments. This will then make the market adjust their valuations up.

Tpharell:

Let me also add that Oando had an advantage over the other divesting entities that could have played into their sealing their deal before others.
Being already a participant in the JV with 20% acquired from ConocoPhillips a decade ago, they added Agip’s 20% state in the JV and became the operator. So the JV was already familiar terrain for them even before the divestment, unlike Seplat who has never participated in the Mobil JV they seek to acquire now

True.

TRANSPOWER
What are these guys actually up to?

Kereokwu:
@yMcy56 kindly help, I want a second brokerage account with competitive charges/commission like morgan

Try Atlas's Portfolios Limited
Or
APEL Alpha ......

But I dont know if APEL has real time data but I know of Atlas's
Both has low brokerage fees and other things you might be looking for.

mikeapollo:


I suspect FBNH will be coming to raise capital.
Expect UBA soon after FBNH

May not happen this year as the people inside fbnh are powerful enough to fund anything

yMcy56:

Mega, check your mail and reply....
You asked one question here but I replied thru mail, seems you didn't check it.

I've seen it. Thanks for your understanding

So as I’m hearing it off the phone now. I think the transaction WILL affect HONEY.

megawealth01:


Please do. I want to check something

godlyguy:


My point isn't even about the price movement of oando. They should release the results instead of always rushing to the media for PR or MEDIA HYPE

I don't even check their price as what is more important is their financials being a public institution. The public needs to know

A news portal goes to publish an old news about a company, and you are blaming the company for media hype?
The news item in question is not a recent press conference or press release by Oando.
It is a news portal reporting a story that is more than a year old. It would have been different if it is Oando doing a press release and repeating the same news again and again.
Don't you know that some news portals sometimes recycle stories to fill in spaces?

NASCON has moved...

Zegra:


The stock will likely still close flat as there is no news to move it northward now.

Tpharell:

Not “sounding like”, already is a broken record of pain, regret, frustration and sadism here on account of missing out on a once in a lifetime

You are feeling you can speak English now.If he decides to go to the gutters with you.This thread will be derailed .Is all that trash necessary

Interesting. Zenith mark down today by N1 for dividend payment does not look obvious because of the N38 closing price on Friday So buying today means I am not entitled to dividend. Making the PO offer a discount of 50 kobo today for one interested in loading up through PO route, while getting a N1 discount if one still has rights not yet taken.

We are still waiting for the penny stock oooo..

I never see street break light today, someone should find his trouble na, I want to check something..

Sunrisepebble:
So as I’m hearing it off the phone now. I think the transaction WILL affect HONEY.

Thanks for letting sunlight into the WELL 😂

I suspected as much after the FMN hint and it’s been on full bid since morning

N950/litre Dangote Petrol May Justify More Importation -marketers

https://punchng.com/N950/litre-dangote-petrol-may-justify-more-importation-marketers

crownprince2017:
We are still waiting for the penny stock oooo..

I never see street break light today, someone should find his trouble na, I want to check something..

Lol.he said < #5.

I am now reformed born again which I don't even know what it means. I nobi gentle man.That is another name for mugu on the street whr we live.If dey slap you.Remove the head so that fight will end quickly but make sure nobi look for trouble first

The way ELLAHLAKES is trading volumes these days....hope nothing

The yeye people way buy international energy. If you guys don't have money to pay us the school fees that has been seriously been reduced. Then free the stock now so that we could collect our school fees in full.This is witch craft oh

So it is still rumor but with the equity related transaction that concerns FMN and what I’m hearing they’re planning to do at completion of the exercise, it will definitely affect HONEY due to the significant stake. They are doing a consolidation. FMN had a predetermined price of about #70, but with recent share price appreciation and activity I believe that will now be revised upwards, to the displeasure of the people at FMN. With regards a target price for HONEY I am still unaware of the happenings there. Will drop more info as it becomes available

Panadee:


Thanks for letting sunlight into the WELL 😂

I suspected as much after the FMN hint and it’s been on full bid since morning

UBA interim. Any ideas on the date.

Sunrisepebble:
So it is still rumor but with the equity related transaction that concerns FMN and what I’m hearing they’re planning to do at completion of the exercise, it will definitely affect HONEY due to the significant stake. They are doing a consolidation. FMN had a predetermined price of about #70, but with recent share price appreciation and activity I believe that will now be revised upwards, to the displeasure of the people at FMN. With regards a target price for HONEY I am still unaware of the happenings there. Will drop more info as it becomes available

What is FMN?

GEREGU has moved

N1,050 ********

designking:


What is FMN?

Flour Mill Nigeria PLC