Oando's Stock Price Reaches Record High, Market Capitalization Now at N827.9 Billion

Olufemi Adeyemi 

Oando Plc is gaining traction in the oil and gas sector of the Nigerian Exchange (NGX), attracting significant investor interest following its recent acquisition of NAOC.

On the last trading day of August 30, the stock price of this integrated oil and gas service surged to N76.90 per share, marking a new peak on the NGX.

Earlier this year, the stock had hit a 52-week low of N5.30 per share but has since rebounded, driven by strong earnings reports.

The sustained demand for shares has led to an impressive increase in Oando's stock price, which rose by N66.60 per share, or 646.6 percent, from N10.30 per share at the close of 2023.

This performance has resulted in a Year-to-Date (YtD) market value gain of N827.9 billion.

An investigation disclosed that the stock price attained N76.90 per share on August 30, 2024, bolstered by a transaction volume of 93,856,895.00 on the NGX.

As of the end of August trading, the company's market capitalization has risen to N955.98 billion.

At the end of August 2024, Oando successfully finalized its acquisition of Eni’s Nigerian subsidiary, the Nigerian Agip Oil Company (NAOC), in a significant transaction valued at $783 million.

The agreement, which was formalized during a signing ceremony in London, marks a pivotal development for Nigeria’s energy sector and underscores the increasing influence of local companies within the industry.

This acquisition, initially announced in September 2023, occurs exactly ten years after Oando's notable $1.8 billion acquisition of ConocoPhillips’ Nigerian assets, which had dramatically increased Oando’s oil production from around 4,500 barrels per day to 50,000 barrels per day.

Analysts have described Oando's acquisition as bold and unprecedented in the oil and gas sector.

Mr. Wale Tinubu, Group Chief Executive of Oando, stated, “Today’s announcement signifies the culmination of a decade filled with determination, resilience, and vision.

This achievement is not merely a victory for Oando but for all indigenous energy companies as we reshape our role in the Nigerian energy landscape.

Our attention will now turn to optimizing these assets while contributing to the nation’s production objectives and seeking new ventures in clean energy, agriculture, infrastructure, and mining.”

Oando has released its unaudited full-year results for 2023, revealing a remarkable 78.9% increase in revenues, which rose to N3.5 trillion from N1.99 trillion in 2022.

This significant growth in revenue was primarily fueled by increased sales volumes, while the company's net income was positively impacted by foreign exchange gains associated with crude oil revenues.

The firm reported a profit after tax of N74.7 billion, a notable improvement compared to the loss of N81.2 billion experienced in the prior year.

The release of these unaudited financial statements represents a significant step forward in meeting regulatory requirements for all publicly traded companies.

This progress indicates that Oando is on track to achieve alignment with industry standards in terms of timely financial reporting by the end of the year, thereby bolstering shareholder and investor confidence in the company's current performance and future prospects.