Oando Plc, fueled by strong investor interest following its acquisition of Nigerian Agip Oil Company (NAOC), is gaining momentum on the Nigerian Exchange (NGX). On August 30, the company’s stock price soared to N76.90 per share, hitting a record high on the NGX.
This surge follows a significant drop earlier in the year, when the stock fell to a 52-week low of N5.30 per share. Since then, it has experienced a remarkable recovery. The stock has risen by N66.60 per share, or 646.6%, from N10.30 per share at the end of 2023, driven by sustained buying activity.
This increase has boosted Oando’s market value by N827.9 billion year-to-date, with 93,856,895 shares traded on August 30 at the price of N76.90 per share. As of the end of August, Oando’s market capitalization stands at N955.98 billion.
Oando’s acquisition of NAOC, valued at $783 million and finalized in August 2024, represents a significant milestone for Nigeria’s energy sector. The deal, completed in a signing ceremony in London, highlights the growing role of local players in the industry. This acquisition follows Oando’s 2013 purchase of ConocoPhillips’ Nigerian assets for $1.8 billion, which dramatically increased its oil output from 4,500 to 50,000 barrels per day.
Analysts view Oando’s recent acquisition as a bold move in the oil and gas sector. Oando Group Chief Executive, Wale Tinubu, emphasized that this achievement reflects a decade of vision and dedication, marking a significant moment for both Oando and the broader indigenous energy sector in Nigeria.
In its unaudited financial results for 2023, Oando reported a 78.9% revenue increase, rising from N1.99 trillion in 2022 to N3.5 trillion. This growth was driven by higher sales volumes and favorable foreign exchange gains related to crude oil. The company also reported a profit after tax of N74.7 billion, reversing the N81.2 billion loss from the previous year.
The timely release of these results is crucial for meeting regulatory requirements and building investor confidence. Oando aims to align its reporting with industry standards by the end of the year, further strengthening trust in its current performance and future prospects.
