Top Performer: OANDO Spikes by 61% over Acquisition Taste
Indigenous oil company with strong asset acquisitions from IOCs. Oando, is now worth half a trillion Naira after gaining 60.5% last week in the local bourse.
Oando Plc’s popularity has increased in the equity market. market, gaining about 61% over the week as investors queue behind the indigenous oil company shares in anticipation for better return.
The company has recently developed a strong taste for acquiring oil assets from international oil companies that are in divestment mode.
Oando plans to release its financial statements backlog as part of efforts to boost investors’ confidence. The company with dual listing on the Nigerian Exchange and Johannesburg Stock Exchange was restricted to trade in South Africa lately.
The restriction was later lifted as the oil company perfected its regulatory demand with plan to release up-to-date earnings scorecard.
Last week, the company’s market valuation skyrocketed to about N505 billion due to strong buying momentum in the market last week.
Its share price climbed from N25.3 at the beginning of the week to N40.6 on Friday following huge volume traded, most of which came from the buy side.
Investors’ strong interest in the oil stock has been supported by expectations of an improved earnings performance due to momentum in the global commodity market.
In the last seven trading sessions on the Nigerian equities market, Oando Plc has gained about 77%. The oil company recently announced plan to release backlogs of unaudited and unaudited financial statements.
Oando recently acquired 100 per cent stake in Nigerian Agip Oil Company Limited (NAOC Ltd), a move analysts’ would significantly reshape the industry going forward.
The deal, which started since September 2023, finally came to fruition with regulatory approval. This is expected to raise Oando Plc’s output from 25,000 barrels per day to 50,000 barrels per day.
Nigeria’s upstream regulator approve divestment deals by Eni and Equinor, allowing local players Oando and Chappal Energies, respectively, to acquire their oil-producing assets.
Eni’s deal with Oando, estimated at $500 million, includes the major’s interests in four onshore oil licenses, OMLs 60, 61, 62 and 63, as well as stakes in the Brass terminal, onshore exploration concessions and power plants.
The Italian company currently holds a 20% operating stake in the joint venture, alongside Oando with 20% and state-owned Nigerian National Petroleum Company with 60%.
Eni first announced the sale of its Nigerian unit to Oando in September 2023, but the deal stalled after state-owned Nigerian National Petroleum Company, which holds 60% equity in the blocks, floated the idea of exercising its right of first refusal on the licenses. #Top Performer: OANDO Spikes by 61% over Acquisition Taste
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