Oando’s profits soar to ₦104.1B, igniting investor frenzy
In a remarkable turnaround, Oando Plc, the indigenous energy provider, has stunned the Nigerian stock market with a staggering pre-tax profit of N104.1 billion for the year ended December 31, 2023. This monumental feat marks a significant departure from recent struggles, sending ripples of excitement through the investor community.
The release of Oando’s latest financial and operational reports has set off a frenzy among investors, with its share price skyrocketing and buy orders flooding in. Despite the prevailing market downturn, Oando’s resilience shines through as it emerges as a major contrarian stock.
A Triumph Against the Odds
At the onset of the week’s trading, Oando’s shares surged by a staggering 9.75 percent, settling at N12.95 per share. This surge continued unabated, with yesterday’s closing reflecting yet another impressive gain of 9.65 percent, closing at N14.20 per share. This bullish run stands in stark contrast to the overall market sentiment, which witnessed a slight decline.
Investors are rushing to capitalize on Oando’s remarkable performance, eagerly staking their claims as the company edges closer to regulatory compliance with its reporting obligations. The company’s audacious move to acquire Eni’s shares in one of its Nigerian subsidiaries, Nigeria Agip Oil Company Limited (NAOC), has only fueled optimism further.
Driving Growth with Resilience
Key extracts from Oando’s interim report for the 12-month period underscore its robust growth trajectory. Turnover surged by a staggering 71 percent, soaring from N1.9 trillion in 2022 to N3.4 trillion in 2023. This remarkable surge propelled the company from a net loss of N81.2 billion in 2022 to a net profit of N74.7 billion in 2023, with pre-tax profits hitting a monumental N104.1 billion.
The company’s strategic initiatives have borne fruit, with significant reductions in upstream borrowings and substantial improvements across major business categories. Trading operations witnessed a 50 percent rise, with traded crude oil volumes and production showing commendable increases.
Paving the Path to Prosperity
Oando’s journey to prosperity hasn’t been without its challenges, particularly in the face of persistent pipeline vandalism across the Niger Delta. Despite these adversities, the company’s relentless pursuit of growth has yielded promising results. The signing of a Sale and Purchase Agreement with Eni to acquire NAOC Ltd represents a watershed moment, poised to unlock substantial synergies in the near future.
Group Chief Executive of Oando Plc, Mr. Wale Tinubu, lauded the company’s resilience, affirming its commitment to future growth. Tinubu emphasized the pivotal role of strategic global partnerships and the company’s foray into clean energy in driving profitability and sustainability.
Shareholders Rejoice, Optimism Abounds
Shareholders, buoyed by Oando’s stellar performance, have expressed unbridled optimism for the company’s future. Moses Igbrude of the Independent Shareholders Association of Nigeria hailed the latest earnings report as “cheering news,” emphasizing the importance of sustaining such performance.
Bisi Bakare of the Pragmatic Shareholders Association of Nigeria echoed similar sentiments, expressing delight at the positive turnaround in the company’s fortunes. Eric Akinduro of the Ibadan Zone Shareholders Association added that Oando’s resurgence heralds better returns for investors, underscoring the collective anticipation for sustained growth and appreciation in share value.
