Annual reports Consolidated and Separate Financial ...

1 Annual reports Consolidated and Separate Financial Statements 31 December 2016 oando PLCA nnual reports and Consolidated Financial statementsFor the year ended 31 December 2016 TABLE OF CONTENTSPageNotePageDirectors and professional advisers3 Directors report47 35 Statement of directors responsibilities68 40 Report of the independent auditors79 42 10 42 11 43 Consolidated and Separate Financial statements.

2 12 43 Statement of profit or loss1313 44 Statement of other comprehensive income1414 44 Statement of Financial position1515 45 Statement of changes in equity1716 46 Statement of cash flows1917 48 18 51 Note19 52 1 General information2020 52 2 Basis of preparation2021 53 3 Changes in accounting policies and disclosures2022 Inventories 54 4 Basis of Consolidation2323 54 5 Other significant accounting policies24 55

3 (a) Segment reporting2525 55 (b) Revenue recognition2526 56 (c) Property, plant and equipment2627 59 (d) Intangible assets2628 Other reserves 59 (e) Impairment of non- Financial assets2729 Borrowings 60 (f) Financial instruments2730 62 (g) Accounting for leases2931 63 (h) Inventories2932 63 (i) Share capital2933 64 (j) Cash and cash equivalents2934 65 (k) Employees benefits3035 Dividend payable 65 (l)

4 Provisions3036 65 (m) Current income and deferred tax3137 66 (n) Exceptional items3138 68 (o) Dividend3139 68 (p) Upstream activities3140 69 (q) Impairment3141 70 (r) Government grant3142 72 (s) Non-current assets held for sale3243 73 (t) Production underlift and overlift3244 74 (u) Fair value3245 76 (v) Offshore processing arrangements32 Other National Disclosures.

5 6337778-79 Subsidiaries' information Financial instruments by category Upstream activities Reconciliation of previously published statement of profit or loss Going concern Significant accounting judgements, estimates and assumptions Value Added Statement Five-Year Financial Summary (2012 - 2016) Trade and other payables Cash generated from operations Related party transactions Commitments Events after the reporting period Contingent liabilities Discontinued operations and disposal groups held for sale Share capital & share premium Provision and other liabilities Derivative Financial liabilities Retirement benefit obligations Government grant Derivative Financial assets Finance lease receivables Non-current receivables Trade and other receivables Available-for-sale Financial assets &

6 Investment in subsidiaries Cash and cash equivalents Income tax expense Earnings and dividend per share Property, plant and equipment Intangible assets Investment in associate accounted for using the equity method Deferred tax Financial risk management Segment information Other operating income Expenses by nature Employee benefit expenses Finance costs/income Page 2 of 79 oando PLCD irectors and Professional AdvisersFor the year ended 31 December 2016 DirectorsHRM. Oba A. Gbadebo, CFR(Chairman, Non-Executive Director)Mr.

7 (Group Chief Executive)Mr. O. Boyo(Deputy Group Chief Executive)Mr. B. Osunsanya(Group Executive Director)Mr. Olufemi Adeyemo(Group Executive Director -Finance)Mr. Oghogho Akpata(Non-executive Director )Chief Sena Anthony(Non-executive Director )Ammuna Lawan Ali(Non-executive Director )- Resigned October 3, 2016Mr. Francesco Cuzzocrea(Non-executive Director )- Resigned February 19, 2016 Engr. Yusuf N'jie (Non-executive Director )- Resigned October 31, 2016Mr. Tanimu Yakubu (Non-executive Director )- Appointed June 30, 2015 Mr.

8 Ike Osakwe(Non-executive Director )- Appointed July 8, 2016Mr. Ademola Akinrele(Non-executive Director )- Appointed July 8, 2016 Company Secretary and Ayotola Jagun (Ms)Chief Compliance OfficerRegistered Office2 Ajose Adeogun StreetVictoria Island, LagosAuditorsErnst & YoungChartered Accountants10th & 13th floorUBA House57, Marina,Lagos, Bank PlcAccess Bank UKAfreximBank of Montreal CanadaBarclays BankBNPC itibank Nigeria LtdCitibank, UKClarien BankDiamond Bank PlcEcobank Nigeria PlcFederated bankFidelity bank PlcFirst Bank (UK)

9 First Bank of Nigeria PlcFirst City Monument Bank PlcFirst City Monument Bank UKGuaranty Trust Bank PlcHeritage Bank PlcHSBC BankIndustrial and Commercial Bank of China LtdING BankING Group Keystone Bank LimitedNational Bank of Fujairah (NBF)Natixis BankRand Merchant BankSociete Generale BankStanbic IBTC Bank PlcStandard Bank of South Africa LtdStandard Chartered Bank Plc., UKStandard Chartered Bank(Nig.) LtdSterling Bank PlcUnion Bank of Nigeria PlcUnited Bank for Africa PlcUnited Bank for Africa, New YorkZenith Bank (UK) LimitedZenith Bank PlcPage 3 of 79 oando PLCD irectors' reportFor the year ended 31 December 20161 PRINCIPAL ACTIVITY2 RESULTS AND DIVIDEND31-Dec-1631-Dec-1531-Dec-1631-De c-15N'000N'000N'000N'000455,746,734 203,431,526 4,858,182 8,452,665 Loss before income tax from continuing operations(63,375,512) (39,113,508) (33,729,427)

10 (56,325,673) 37,569,028 4,192,937 (146,405) (241,499) Loss for the year from continuing operations(25,806,484) (34,920,571) (33,875,832) (56,567,172) Profit/(loss) for the year from discontinued operations 29,300,521 (14,769,306) - - Profit/(loss) for the year3,494,037 (49,689,877) (33,875,832) (56,567,172) Profit/(loss) attributable to owners of the parent3,124,803 (50,434,843) (33,875,832) (56,567,172) 3 Dividend4 DirectorsDirectIndirectHRM.