Odu’a Investment’s performance drew applause from Governors OluwarotimiAkeredolu (Ondo) and Dapo Abiodun (Ogun), who personally attended the 40th Annual General Meeting of the company in Lagos. Sulaimon Olanrewaju reports.
Odu’a Investment Company Limited (OICL) dazzled its shareholders at its 40th Annual General Meeting (AGM) held last Wednesday in Lagos as it posted Profit Before Tax of N9.37billion for the 2021 financial year, which was quite higher than the N3.75billion reported in 2020.
In his report at the AGM attended personally by the governors of Ondo and Ogun states, ArakunrinOluwarotimiAkeredolu and Prince DapoAbiodun respectively; as well as the representatives of the governors of Ekiti, Oyo and Osun states, DrSegunAina, who served as the board chairman till the tail end of the meeting, said the growth recorded by the company was driven by the increased focus on the different areas of the business and gains in investment properties.
He added, “Our earnings per share also improved to N15.9 for 2021 compared to N5.1 in 2020. Delivering shareholder value remains a core commitment of this board as seen by our progressive dividend payments in spite of the significant cash requirements of our growth strategy.”
The board then recommended dividend pay-out of N418.4 million, which is 15 per cent higher than N364m paid in 2021.
DrAina further said that the sterling performance of the company was made possible by the right foundations for continuous growth built by the current board and management.
He said, “In 2021, we celebrated 45 years since the Group commenced operations, and as part of the celebrations we set up the Odu’a Investment Foundation, established to positively influence the next generation of our youth. The rich heritage and history of Odu’a Investment and its subsidiaries will be further highlighted in 2022 as Lagos Airport Hotel Limited and Wemabod Limited turn 80 and 60 years old respectively. The relevance of our mission ‘to deliver sustainable returns for all stakeholders; enhancing the legacy for future generations’ is not lost on us and is constantly affirmed in our engagements with stakeholders across the region.
“We remain convinced that our SRC 2025 Strategy, and its five main pillars of Governance and Reporting, People and Culture, Profitability and Efficiency, Investment Excellence, and Growth & Expansion hold the key to realising the value we seek to deliver. Our strategy continues to be to build on the legacy that was inherited; as we SWEAT existing businesses, seek to REVIVE some of our existing businesses, and look for opportunities to CREATE new businesses that will recreate the successes of the past.”
While giving further clarifications on the company’s performance, the GMD said the Profit Before Tax figure for the year under review included revaluation gains of N7.11 billion from her investment properties portfolio which was N2.63 billion in 2020.
He added, “If this Accounting gains are stripped off, the normalised Profit Before Tax for 2021 will be N2.26 billion and N1.12 billion for 2020 representing a 102 per cent increase.”
In his report on each segment of the conglomerate’s operation, MrRaji said, “In 2020, the hospitality sector was one of the worst hit by the impact of Covid-19 pandemic. Our hotels have however begun to see some recovery as we continue to make minimal improvements to our facilities and intensify business development activities. The Board and Management are happy to inform you that investors are beginning to show interest in the redevelopment of our hotels to global standard and world class leisure, entertainment, conferencing and banqueting destinations on a joint venture basis. Any major breakthrough in this respect will be brought to the attention of shareholders.”
The GMD reported that the real estate business of the Group in conjunction with its joint venture partners performed very well despite the hike in the prices of construction materials.
He stated, “Westlink Clinton’s Court, a 16-unit four-Bedroom Terrace medium-density estate, next to the Oyo State Magistrate Court at Iyaganku GRA, Ibadan is expected to be completed in 2022. Our largest ongoing property development project is Westlink Iconic Villa, a multi-billion Naira real estate JV development with Chapter 4 Estates Ltd next to Nigerian Breweries at Alakia, Ibadan made steady progress. The Phase 1 made up of 67 residential units of three-bedroom apartments, four-bedroom duplexes and five-bedroom duplexes will be commissioned this year having experienced one year delay due to COVID-19. We however believe that the challenges experienced in the Phase 1 of the project have been comprehensively addressed and we expect Phase 2 to be delivered on time.”
One of the new ventures of Odu’a Investment Company Limited is oil and gas. In his report at the AGM, the GMD said, “I am delighted to report that following our successful participation in the Federal Government bid for BITA Marginal Field located in OML 95 within the territorial waters of Ondo State, Bita Exploration & Production Ltd (BEPL) has been incorporated with our Field Partner – Pioneer Global Energy Resources Ltd. All the required documentation by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) formerly the Department of Petroleum Resources (DPR), have been submitted and a Farm Out Agreement Letter request has been forwarded to Chevron Nigeria. OICL’s holding in BEPL is 48.76 per cent of which ABUAD Management Services Company owns one-third. We are poised to work closely with Chevron Nigeria to achieve our target oil and gas production volumes as soon as possible based on enhanced Competent Persons Report (CPR) and Field Development Plan (FDP) documents that BEPL will be commissioning.”
According to Raji, the conglomerate’s agric investment subsidiary, South West Agriculture Company (SWAGCO Ltd), has begun to make significant effort in investing in agriculture opportunities meant to drive capacity development for a new generation of commercial farmers and entrepreneurs, adding that the company had committed a large portion of its land bank to growing cassava, maize, paddy rice and dairy.
Raji also spoke about the plan of the Group to transition the management of OICL properties to Wemabod Limited, thus creating a single operating entity that will manage the entire Odu’a Group properties and that of third-party properties.
He added, “They will also engage in wholesome property development and facility management activities. Going forward, OICL will focus on driving the growth and expansion of its subsidiaries and associate companies, ensuring investment excellence across its portfolio of assets and seeking for new partnerships for growth within the context of its five Years SRC – 2025 strategic thrust.”
In his speech at the AGM, Akeredolu, who is also Chairman of South West Governors’ Forum, commended the board under the leadership DrAina, for changing the narratives of the company and shareholders, adding that a lot of strategies had been put in place. The governor charged the board to strive more towards repositioning the company for the economic prosperity of the South West region and its people.
Akeredolu called on Odu’a Investment to do more in Ondo State by inaugurating life-changing projects especially in agriculture.
Similarly, Ogun State governor, Prince Abiodun, expressed satisfaction with the performance of the company since the inauguration of the current board. He assured the company of his administration’s support in creating an enabling environment for the company to thrive.
He said, “We in Ogun State are deeply committed to the cause of Odu’a and to what Odu’a was established to achieve. We will continue to give the needed support so that economic and financial objectives of Odu’a are realised.”
In accordance with the established principle of rotation of position of chairman among shareholder states every four years as enshrined in the shareholders agreement, DrAina, stepped down as chairman at the end of the AGM, though he remained on the board.
While announcing this to the shareholders, he said, “My tenure as chairman will come to an end after this Annual General Meeting. Consequently, the board and shareholders have approved that Otunba Bimbo Ashiru will take over as the new chairman of the board of directors at the end of this AGM.”
In giving an account of his stewardship, he said, “It has been a great privilege and rare honour to have been given the opportunity by shareholders to be the chairman of this great institution from May 7, 2020 to June 22, 2022. I came on board with my colleagues at a very challenging period in the life of this company, a situation that was compounded with the onset of the Covid-19 pandemic. Our board was charged with the responsibility to stabilise the organization, make fundamental corporate governance changes and chart a path for the future. With the support of our shareholders, the huge cooperation of directors and management, and indeed all stakeholders, the company was able to wade through the challenging times and witnessed enduring transformation in all facets leading to the growth and increased relevance we are reporting today.
“I want to urge all stakeholders to give an even higher level of support and cooperation to my successor in office, Otunba Bimbo Ashiru. He has served with me on the board since our inauguration on 7th May 2020, and has shown exemplary commitment and sagacity as a director, and as chairman of the company’s Investment Committee. He comes with a great pedigree, a blend of a rich track record in banking and public governance and he will no doubt steer the company into greater level of growth and prominence in accordance with the shareholders’ transformation mandate.”
In his acceptance speech, Ashiru, who was a commissioner for Commerce and Industry in Ogun State, thanked DrAina for his contribution to the growth of the company, while promising to steer the ship of the company on the path of continued progress.
Over the past few years, the performance of OICL has been on the upswing. This is a pointer that it is conforming to the dream of its founding fathers. The companies that constitute OICL were established to serve as a vehicle for expanding the economy of the South West region and creating wealth for the people. So, by posting a positive result, the Group is fulfilling the essence of its establishment.
In the same vein, with its performance, OICL achieved the target set for it by its current handlers. At the 45th anniversary of the conglomerate last year in Lagos, the board and management gave themselves the task of turning OICL into a regional economic powerhouse as part of its SRC 2025 target. The 2021 financial year result was indicative of the company’s determination to achieve its self-assigned task.
Therefore, as OICL continues its SRC 2025 journey, the results can only get better by the year.
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