Oando Sinks Below N500bn Amidst Petrol Business Threat
Oando Plc is in a tailspin after more than a 500% gain in 2024. Market value of Oando Plc’s 12.431 billion shares outstanding fell to N497.256 billion at the close of the trading session on Friday amidst threatened business fundamentals.
The oil company’s share price fell to N40, a sharp price depreciation from its highest valuation in 52-weeks. With the growing business risks, investors in oil-linked stocks exited their positions.
The massive sell-offs plunged Oando shares, with market value settling below N500 billion, for a company that had surpassed N1 trillion.
Trading volume of Oando in the Nigerian market showed investors were rotating positions, and the volume were huge. The oil stock fell each day throughout trading sessions, from N48.05 at the beginning to N40 on Friday when 3.763 million units valued at N151.45 million were executed.
The fallen angel was valued at N820 billion in the first trading session in 2025 after recording 508% price appreciation in 2024. While the group maintained its expansion drive, Dangote Refinery operation has roughened its edges in the downstream sector.
Oando said it suspended petrol importation into the country as the commencement of domestic fuel supply by the Dangote Refinery continues to disrupt Nigeria’s downstream market.
The Dangote refinery began production in 2024 with a capacity of 650,000 barrels per day and now supplies much of the nation’s petrol and diesel needs, significantly cutting the country’s dependence on imported products.
Suspension of petrol motor spirit has affected Oando revenue, and profitability in the third quarter, according to unaudited financial statements released on Nigerian Exchange.
The energy company trading segment face headwinds that exerted pressure on its earnings as Premium Motor Spirit imports reduced sharply.
In response to the changing environment, the energy company diversified crude offtake sources, optimised trade flows, and expanded into new commodities like liquefied natural gas to cushion the impact of lost PMS volumes.
“With the refinery now fulfilling its intended role in supporting national product availability, Oando has redirected its focus towards higher-margin crude and gas trading opportunities, while continuing to evaluate re-entry into the refined-product segment as market dynamics stabilise.
Looking ahead, Oando said it would focus on strengthening crude trade flows and expanding into gas and metals.
The focus going forward is on deepening operational resilience and optimising existing crude trade flows, supported by the development of offtake-linked financing structures to unlock incremental volumes and strengthen margins.
In parallel, the division is advancing plans to diversify into gas and metals trading, aligning with the group’s broader strategy to build a balanced, future-ready energy portfolio and deliver sustained long-term value, according to a report.
Last week, the Federal Government introduced a 15 per cent import duty on petrol and diesel to discourage cheap fuel imports and protect local refineries. The policy is aimed at consolidating domestic refining gains and stabilising the market amid Dangote’s rapid scale-up. GCR Keeps FBNQuest Merchant Bank Outlook on Rating Watch Negative
