Oando Breaches N40 Support on Pre-Earnings Sell Pressure
The market value of Oando Plc, with 12.431 billion shares outstanding, declined to N476 billion in the stock market as investors continue to offload the energy company.
The oil stock movement aligned with broader market sentiment, breaching its N40 support level as uncertainties around the group’s earnings hurt investors’ sentiment.
A falling knife, Oando share price declined by 4.25% to N38.3 as 13.893 million shares valued at N536 million were traded in the local bourse, according to data from the Nigerian Exchange.
The transactions were led by sell-side actors amidst Oando missing a regulatory filing. The falling angel had a hold position above N40 per share on average, but the latest round of portfolio adjustment in line with pre-earnings transactions has turned negative.
While the first quarter of financial year 2026 earnings results have not been released, Oando indicated that the group has been repositioning its business portfolio towards a higher margin opportunity.
The strategic action dragged Oando’s revenue lower in 2025, though trading volumes surged by 24% year on year to 25.7 MMbbl last year.
The group’s revenue declined sharply by about 22% year on year to N3.2 trillion in 2025 from N4.1 trillion in the equivalent period in 2024, reflecting trading optimisation and exit from low-margin PMS activities.
Deepening its footprint in the industry, the company deployed N135.0 billion in capital expenditure in 2025, focused on high-impact upstream activity.
In its outlook for 2026, Oando set production guidance of 40,000–50,000 boepd, comprising 12,000–15,000 bopd (oil) and 160–200 MMscfd (gas).
The company also planned capital expenditure of approximately $90–100 million, focused on high-impact, short-cycle upstream activities.
Oando crude oil trading volumes are expected at 30–35 MMbbls, reflecting continued portfolio optimisation, with expansion into clean energy. The group planned the deployment of 11 additional electric buses to the fleet in 2028.
In 2025, Oando’s trading portfolio was rebalanced towards higher-margin crude and gas trading opportunities. The group said its repositioning in Nigeria improves capital efficiency, reduces exposure to low-margin, high-volume activities, and aligns the Trading Division more closely with upstream operations.
This supported a more efficient monetisation of production and improved the quality and sustainability of earnings.
Oando delivered N205 billion in profit after tax, supported by impairment reversals and tax credits. Still, the net profit was 7% below N220 billion reported in the equivalent period in 2024.
Oando has lost significantly in the stock market, trading below N500 billion for a company whose market capitalisation had surpassed N1 trillion. Oando Climbs 10% Ahead of Scheduled Earnings Release
