Oando Soars Amidst Earnings Anticipation, Oil Spill Notice
Indigenous energy company Oando Plc’s market value soared by about 21% on the Nigerian Exchange (NGX) in a fresh rally, reversing sell pressure experienced in the local bourse.
In an action propelled by positive sentiment on the indigenous energy stock, investors were seen taking positions in Oando shares in anticipation of the company’s earnings release. Sell pressure on the oil-price-linked energy stocks appears to have reduced.
Last week, Oando dropped a hint that the energy company recorded four oil spills between Oct 2024 to date and hinted that it has completed damaged pipeline repairs. The market weighed the company’s quick and positive response while investors continue to anticipate the release of Oando’s missed regulatory filing.
Transaction details in the Nigerian bourse revealed that equity investors actively traded Oando shares in the local bourse, and the increased activity nudged the company’s share price to N52 from N43.1 at the beginning of the week. Trading volumes handled on the exchange over the five trading sessions were heavy with a one-time bump.
According to data obtained from the Nigerian Exchange, the indigenous energy company’s market value increased by 20.64% week on week to close at N646.433 billion. Oando is expected to release its audited financial statement for 2024 and first quarter of 2025 earnings scorecard.
Management informed the stock market authority the report will be delayed due to accounting for the Nigeria Agip Oil Company acquisition and expanded internal controls over financial reporting (ICFR) requirements.
Oando Plc has recently disclosed that it has recorded four operational oil spill incidents between October 2024 and the present date. It hinted that it undertaken a sectional replacement of parts of the pipeline that were identified as dilapidated, aiming to prevent future occurrences.
Upon identification of each incident, the company said it swiftly activated emergency response protocols in line with company policy, including the immediate shut-in of the affected wells and cessation of crude oil delivery through the pipeline.”
Oando’s disclosure of multiple oil spill incidents underscores the ongoing challenges associated with oil pipeline infrastructure in the Niger Delta region. The company’s swift response in activating emergency protocols and completing repairs is seen as a positive step. #Oando Soars Amidst Earnings Anticipation, Oil Spill Notice CBN Rejects N1.6trn from Investors, Cuts Treasury Bills Rates
