Oando Begins Fresh Uptrend after New Win
Oando Plc. market value cracked further, albeit, slightly as the indigenous energy company struggle to keep the momentum. However, the last two days strong price upticks suggest the company could be starting a fresh momentum that would drive its market value higher in the new week.
Oando experienced last minutes rally on Thursday, and Friday following a new win to lease refinery in Trinidad and Tobago. Hence, investors re-entered positions in the oil, Energy Company in anticipation of better earnings potential. Data from the Nigerian Exchange (NGX) trading platform showed the indigenous oil company’s market value fell to N721.643 billion week on week as sell outweigh buy orders.
On Friday, the oil stock rose to N58.05 as more than 9 million units of Oando valued at N520.790 million were traded in the equities market. This marked second price uptick with the first rally happened on Thursday when its price surged from N48 to N52.80 on strong bargain hunting.
Oando Plc emerged as the preferred bidder to lease the Guaracara refinery in Trinidad and Tobago. In a statement on Thursday, Trinidad and Tobago’s acting Minister of Energy, Stuart Young, said Oando won the bid primarily based on its strong financial track record, emphasising its $1.5bn acquisition of ConocoPhillips’ assets in Nigeria in 2014.
Mr Young said, “Today Cabinet agreed to inform Trinidad Petroleum Holdings Limited (TPHL) of its non-objection to the pursuit of discussions with energy company Oando to negotiate the lease of the Guaracara refinery.’’
The minister noted Oando’s proposal aligned with the government’s goals of reducing the state’s burden and creating flexibility for the future operation of the refinery. According to the evaluation committee, Oando defeated companies such as the CRO Consortium given its ability to secure substantial financing in the upstream oil sector.
Mr Young further stressed the need to protect Paria Fuel Trading Company’s assets, stating that it was crucial to ensuring the continued supply of domestic fuel in the country.
“We have to protect the assets of Paria to always ensure that we can provide domestic fuel to our population,” Mr Young added, stressing that potential bidders must be committed to restarting the refinery and not just acquiring Paria’s assets only for bunkering purposes.
This development came weeks after Oando announced its upstream subsidiary, Oando Energy Resources (OER), secured a bid to operate an oil block in Angola. #Oando Begins Fresh Uptrend after New Win #Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
