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Auditors Question Nigeria Oil Driller’s Ability to Stay Afloat

  • Liabilities exceeded assets by 63 billion naira as at Dec. 30
  • Energy company also under investigation by Nigerian regulator
A man rides a motorcycle past a closed Oando Plc gas station in Port Harcourt, Nigeria.
A man rides a motorcycle past a closed Oando Plc gas station in Port Harcourt, Nigeria.Photographer: George Osodi
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Ernst & Young, auditors for Nigeria’s Oando Plc, said there was material uncertainty about the energy company’s ability to continue as a going concern, even as it reported increased profit in the past financial year.

While profit after tax rose 46 percent to 28.8 billion naira ($80 million), “the company recorded comprehensive losses for the year of 18.3 billion naira and, as that date, current liabilities exceeded current assets by 63 billion naira,” the auditors said in their report accompanying the financial statements.