Yaoundé - 25 January 2020 -

Cameroon: London-based YF Finance raises shares in Victoria Oil and Gas

Cameroon: London-based YF Finance raises shares in Victoria Oil and Gas
  • Comments   -   Thursday, 07 March 2019 13:27

(Business in Cameroon) - London-based investment firm YF Finance pumps an additional £5.85 million ($7.7 million) in the equity of AIM-quoted Victoria Oil and Gas (VOG), the parent company of Gas du Cameroon.

If approved, this investment will enable YF Finance which is already VOG’s largest shareholder (6.5%) to increase shares. As a reminder, the operation falls in line with a strategy to raise equity through the issue of new shares that saw the company mobilize, in aggregate, £13.6 million ($17.7 million).

The entire sum will be used to strengthen cash flow since VOG faced difficulties throughout 2018; difficulties mainly caused by the suspension of contract with Cameroon’s power utility Eneo. Also, VOG had to restructure debt to maintain liquidity.  

The equity increase is another good news for the company which resumed contract with Eneo in late 2018. However the company planned a number of measures to limit spending. These include a reduction by 53% in the salaries of senior executives, -50% for the Board Chairman and -33% for the Managing Director. According to its yet to be audited books, VOG ended 2018 with a turnover of $10.6 million, 50% down that of 2017. $3.6 million cash flow was far below the $11.4 million in 2017 and net debt was $17.3 million.

Meanwhile, the company will pursue the development of its projects in Cameroon, especially the Matanda project.

Idriss Linge

In a briefing note signed on January 23, Louis Paul Motaze (photo), Cameroon’s Minister of Finance (Minfi), encouraged the business community to maintain...
During the cabinet meeting held January 23 in Yaoundé, the Minister of Finance, Louis Paul Motaze, produced an update on Cameroon's membership in...
Pamol Plantations PLC and Cameroon Development Corporation (CDC), the two agro-industrial units which have been paying the heaviest price for the ongoing...
In Cameroon, stock farmers of the Far-north just received 2,000 small ruminants in the framework of Prodel, an animal husbandry development programme...

Mags frontpage

Business in Cameroon n82-83: December 2019-January 2020

CFA: The debate is open in the CEMAC

Cameroon becomes CEMAC’s financial center

Investir au Cameroun n92-93: Decembre 2019-Janvier 2020

Franc CFA : le débat est ouvert en zone CEMAC

Le Cameroun devient la place financière de la CEMAC