Oando Plc is driving momentum in the oil and gas segment of the Nigerian Exchange (NGX) as investors continue to show interest in the company that recently completed the acquisition of NAOC.
Stock price of the integrated oil and gas service rose to N76.90 per share on last trading day August 30, to bring its price to an all-time high on the floor of the NGX.
The stock price this year reached a 52-week low of N5.30 per share and has witnessed revival amid posting impressive earnings.
Due to sustained buying interest in the shares, the stock price of Oando between January and August 2024 has appreciated by N66.60 per share or 646.6 per cent from N10.30 per share when it closed in 2023.
This brings its market value Year-till-Date (YtD) gain to N827.9billion. According to THISDAY investigation, the stock price reached N76.90 per share August 30, 2024, influenced by 93,856,895.00 volume of transactions on NGX.
The company's market capitalisation has increased to N955.98 billion as of August ending trading activities.
Oando towards ending of August 2024 successfully completed its acquisition of Eni's Nigerian subsidiary, Nigerian Agip Oil Company (NAOC), in a landmark deal valued at $783 million.
The agreement, finalised in a signing ceremony in London, represents a transformative moment for Nigeria's energy sector and highlights the growing prominence of indigenous players in the industry.
The acquisition, first announced in September 2023, comes precisely a decade after Oando's landmark $1.8 billion purchase of ConocoPhillips' Nigerian assets. That previous transaction had significantly boosted Oando's oil production from approximately 4,500 barrels per day to 50,000 barrels per day.
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Analysts told THISDAY that Oando acquisition taste is daring and one of its kind in the oil and gas industry.
Group Chief Executive of Oando, Mr. Wale Tinubu in a statement said, "Today's announcement marks the culmination of a decade of determination, resilience, and vision.
"This achievement is not just a triumph for Oando but for every indigenous energy company as we redefine our role in the Nigerian energy sector.
"Our focus now shifts to maximising the potential of these assets while supporting the nation's production goals and exploring new opportunities in clean energy, agriculture, infrastructure, and mining."
Oando had announced its unaudited 2023 full-year results, showing a 78.9per cent growth in revenues to N3.5 trillion from N1.99 trillion reported in 2022.
This substantial revenue increase was driven by higher sales volumes, while the bottom line benefited significantly from foreign exchange gains related to crude oil earnings.
The company posted a profit after tax of N74.7 billion, a stark contrast to the loss of N81.2 billion recorded in the previous year.
The release of the company's unaudited 2023 results is a crucial step toward meeting regulatory requirements for all listed companies.
This progress suggests that by the end of this year, the company will align with its peers in timely reporting, thereby bolstering confidence among shareholders and investors regarding its current status and prospects.
