Connect with us

Business

Why Johannesburg Stock Exchange Suspended Nigeria’s Oando Plc

Published

on

Johannesburg Stock Exchange Suspends Oando Plc

Oando PLC, a prominent Nigerian energy company listed on both the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE), has been suspended from the JSE as of 27 March 2024.

The suspension was enacted due to the company’s failure to publish its audited financial results for the year 2022 and the interim results for 2023 within the deadlines extended by the exchange.

The company, in its notification to the public and its shareholders, disclosed that it had sought an additional extension from the JSE to submit the required financial documents.

However, the request was denied, leading to the suspension of its securities trading on the exchange. This action prevents investors from engaging in transactions involving Oando’s shares on the JSE until the company complies with the listing requirements.

Oando has communicated that its board is expected to approve the 2022 financial accounts by 15 April 2024. Following this approval, the accounts will be submitted to the Financial Reporting Council of Nigeria for regulatory approval before being released to the market.

The company also anticipates releasing its interim results for 2023 shortly after the publication of the 2022 accounts.

The suspension will likely raise questions about Oando’s adherence to financial reporting standards and its implications for investor confidence.

The delay in publishing critical financial information is a significant concern for shareholders and potential investors, highlighting the challenges faced by companies in maintaining compliance with stock exchange regulations.

Oando however pledged to provide updates to the market and its shareholders as new information becomes available and as it works to address the current suspension.

The situation underscores the importance of timely financial reporting and transparency in the corporate governance of publicly traded companies.

Oando PLC, a prominent player in Nigeria’s energy sector, has encountered significant delays in publishing its audited financial results for the year 2022 and the interim results for 2023.

According to industry analysts and reports, these delays are attributable to a combination of regulatory challenges and internal audit complexities.

Regulatory scrutiny, often intensified for companies like Oando with listings on multiple stock exchanges, requires thorough compliance with diverse financial reporting standards.

This scrutiny is aimed at ensuring transparency, accuracy, and fairness in the presentation of financial statements to protect investors and the integrity of the financial market.

Hammed Tajudeen is a graduate of Osun State Polytechnic, Iree with Higher National Diploma (HND) in Mass Communication

Click To Get Your Order From Zeedat Fashions

Follow us on Facebook

Trending