Oando Plc's shares have experienced a significant surge on the Nigerian Exchange, climbing over 39% in early June 2025. This robust upward momentum reflects a renewed wave of investor confidence in the integrated energy solutions provider.
The impressive rally comes on the heels of two key developments: the public release of the company's full-year 2024 financial results, which appear to have been well-received by the market, and a substantial expansion of its reserve-based lending facility. These combined factors suggest that investors are optimistic about Oando's financial health and its future growth prospects.
Strong Financial Performance Fuels Optimism
On June 4, Oando published its long-awaited audited financial statements, revealing a substantial improvement in its bottom line. The company reported a pre-tax profit of ₦383.8 billion, marking a remarkable 272.72% increase compared to the previous year.
The jump in profitability was underpinned by a surge in oil revenues. Total revenue rose from ₦2.84 trillion to ₦4.08 trillion, reflecting a 43.61% year-on-year growth. Crude oil sales remained the dominant revenue driver, bolstered by increased demand and favorable pricing in international markets.
Regional revenue performance also showed a strong skew toward international operations, which contributed ₦3.6 trillion, while Nigerian operations added ₦755.3 million.
In addition, the company’s total assets rose to ₦6.4 trillion, representing a 140.43% increase. A key contributor to this growth was the completion of Oando’s acquisition of Nigerian Agip Oil Company Limited—a strategic move that strengthened its upstream portfolio. The acquisition was facilitated through financing support from Afreximbank.
Loan Upsize Signals Growth Ambitions
Complementing its strong earnings release, Oando also announced the upsizing of its Reserve-Based Lending Facility (RBL2) to $375 million. The facility, backed by Afreximbank and energy trading giant Mercuria, is aimed at improving liquidity, enhancing asset development, and providing operational flexibility.
Commenting on the development, Group Chief Executive Wale Tinubu highlighted the strategic significance of the loan facility:
“We are pleased to have completed this upsizing, a strategic milestone that will maximize value and expand our asset portfolio. Our Joint Venture holds extensive reserves with the potential to generate $11 billion in net cash flow to Oando over the asset’s life.”
The twin announcements appear to have reassured investors, driving significant demand for Oando shares. By June 11, the stock had climbed to ₦63.10, with trading volumes exceeding 50 million shares, suggesting strong market interest in the company’s prospects.
Stock Recovers from Multi-Month Slump
Oando’s stock performance in 2025 has been marked by volatility. The company opened the year at ₦68.40, attempting a recovery after losses that began in late 2024. Despite a brief rally in early January, bearish sentiment dominated the first quarter, with the stock falling to a low of ₦42.05 by March.
Market sentiment began to shift in late May as oil prices firmed and investor interest in energy stocks revived. This modest uptick set the stage for the early June rally, which has pushed Oando’s share price above the ₦55 resistance level and firmly into bullish territory.
What’s Driving the Rally?
While the full spectrum of market forces behind the stock’s surge remains complex, several key fundamentals are evident:
- Earnings growth: The company’s sharp rise in profitability and revenue signals improved operational efficiency and market positioning.
- Asset expansion: The Agip Oil acquisition significantly boosts Oando’s reserves and production capabilities.
- Enhanced financing: The $375 million upsized RBL2 facility provides financial headroom and underlines confidence from international lenders.
These factors combined have positioned Oando as one of the best-performing energy stocks on the Nigerian Exchange in Q2 2025.
Outlook: Sustaining Momentum
As the oil and gas sector continues to rebound, investors will be watching how Oando executes its growth strategy, particularly in integrating the Agip acquisition and deploying its new capital efficiently. Market analysts also suggest that continued transparency in reporting and delivery on strategic milestones could help sustain investor enthusiasm.
With its fundamentals strengthened and investor confidence renewed, Oando Plc appears poised for a pivotal second half of the year.