Oando Dives, Trades at 57% Discount to 52-Week High
Indigenous energy company, Oando Plc, lost an additional 13.13% of its market value in the last three trading sessions to close at N522.12 billion in the equities market on Friday, according to data from the Nigerian Exchange.
Reflecting its shareholders sentiment, the group’s valuation dropped sharply, down by 16% over the last seven trading session as investors continue to exit their positions despite build up in earning generating capacity of the energy companies in the recent years.
In March, the oil and energy stock plunged by 16.7% as investors took profit in spite of the group’s expansion drive. The latest sell pressures discounted the energy company’s market value by 57% to N42 on Friday’s close from N98.4, its 52-week high on the Nigerian bourse.
Data from the stock market showed that Oando share price slumped to N42 on Friday as more than 10.667 million shares valued at N445.438 million exchanged hands in the local bourse.
After ranking among top performers in 2024, Oando Plc has seen fast and furious sell pressures in 2025 due to investors’ negative sentiments despite potential earnings growth due to expansions.
Oando said in a regulatory filing that the group failed to meet the deadline for the submission of its 2024 audited financial report. The group attributed the delay to accounting for the Nigeria Agip Oil Company (NAOC) acquisition and expanded Internal Controls over Financial Reporting (ICFR) Requirements.
Following the acquisition of Nigeria Agip Oil Company, now Oando Energy Resources Nigeria Limited, and the group said it must integrate the acquiree’s financials into its consolidated statements in compliance with IFRS 3 requirements.
“This involves aligning accounting policies, mapping charts of accounts, and integrating legacy systems (SAP and Oracle Fusion). While significant progress has been made, the process has been delayed due to pending responses from ENI regarding critical financial data,” Oando said.
The energy company said given the material impact of this integration on the group’s financials, its completion is essential before finalizing the audit.
In July 2024, the Financial Reporting Council of Nigeria (FRC) revised its ICFR guidelines, expanding the definition of Public Interest Entities (PIEs) to include government licensees and companies with an annual turnover exceeding N30 billion.
Consequently, certain Oando subsidiaries, including OERNL, now require additional scoping and testing as part of the 2024 audit.
Oando highlighted that due to the complexity of these new requirements, the ICFR process—including attestations from the Group Chief Executive (GCE), Group Chief Financial Officer (GCFO), and independent auditors— will not be fully completed until the end of March 2025.
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