Mr Wale Tinubu, Group Chief Executive of Oando on Friday said that the company retained its 2011profit to ensure robust dividend to shareholders in future.
Tinubu said this at the company’s 35th annual general meeting (AGM) held in Lagos.
He said that huge investment outlay in the company’s diversification programme contributed to nonpayment of dividend for financial year.
According to him, the company’s massive investment in new hi-tech service stations, the renovation of 20 existing stations and acquisitions of other outlets would continue in 2012.
The News Agency of Nigeria (NAN) reports that the company’s inability to declare dividend for the first time since its inception followed Oando board’s decision write-down N9.6 billion debt.
Mr Sunny Nwosu, the National Coordinator Independent Shareholders Association of Nigeria (ISAN), commended the management for the efforts aimed at ensuring stable growth in spite of the national economic challenges.
Nwosu, however, urged the company to be more investor friendly by ensuring prompt release of information for investors to patronise its shares and cushion the effects of depression.
Mr Sola Aboderin, the Chairman of Ibadan Zonal Shareholders said that the company’s investment profile should be overhauled for value creation.
Aboderin said that the company should review the process of its debt write offs to ensure that shareholders were compensated for their investment.
Also speaking, Mr Boniface Okezie, the President of Progressive Shareholders Association of Nigeria (PSAN), urged the company to sustain its adherence to good corporate governance.
NAN reports that the company for the financial year ended Dec.31, 2011 posted a turnover of N586.6 billion as against N378.9 billion in 2010.
Profit after tax dropped to N3.4 billion in contrast with N14.4 billion recorded in the previous year.
The company attributed the decrease to write-downs of N9.6 billion for future growth. ?
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