Oando has been gaining momentum in the oil and gas sector on the Nigerian Exchange (NGX) as investors continue to show interest in the company, which recently completed its acquisition of NAOC.
The stock price of the incorporated oil and gas service rose to N76.90 per share on the last exchanging day August 30, to carry its cost to an unsurpassed high on the floor of the NGX.
The stock hit a 52-week low of NGN5.30 per share this year but has since recovered following impressive financial results.
Because of sustained buying interest in the offers, the stock cost of Oando between January and August 2024 was valued by N66.60 per share or 646.6 percent from N10.30 per share when it closed in 2023.
This brings the year-to-date (YTD) market capitalization increase to NGN827.9 billion. According to Journalists survey, the share price hit 76.90 naira per share on August 30, 2024, influenced by a trading volume of 93,856,895.00 on NGX.
The company’s market capitalization increased to 955.98 billion naira as of the close of trading in August.
Oando completed the acquisition of Eni’s Nigerian subsidiary, Nigeria Agip Oil Company (NAOC), in a landmark deal worth US$783 million towards the end of August 2024.
The agreement concluded at a signing ceremony in London, represents a transformative moment for Nigeria’s energy sector, highlighting the growing importance of domestic players in the industry.
The acquisition, which was first announced in September 2023, comes exactly 10 years after Oando’s landmark acquisition of ConocoPhillips’ Nigerian assets for $1.8 billion. This previous transaction significantly increased Oando’s oil production from about 4,500 barrels per day to 50,000 barrels per day.
Analysts said the Oando acquisition was a bold and unique move in the oil and gas industry.
Oando Group Chief Executive Officer Wale Tinubu said in a statement: “Today’s announcement marks the culmination of a decade of determination, resilience, and vision.
“This achievement is not just a triumph for Oando but for every indigenous energy company as we redefine our role in the Nigerian energy sector.
“Our focus now shifts to maximizing the potential of these assets while supporting the nation’s production goals and exploring new opportunities in clean energy, agriculture, infrastructure, and mining.”
Oando has released its unaudited full-year 2023 financial results, showing a 78.9% increase in sales to 3.5 trillion naira from 1.99 trillion naira in 2022. This significant increase in sales was driven by higher sales volumes, while the bottom line benefited significantly from foreign exchange gains related to crude oil revenues.
The company recorded a profit after tax of N74.7 billion, in contrast to a loss of N81.2 billion a year earlier.
The release of the company’s unaudited 2023 financial results marks an important step in meeting the regulatory requirements for all publicly listed companies.
This progress suggests that the company will be in line with its peers in terms of timely reporting by the end of this year, boosting shareholder and investor confidence in its current position and prospects.
