Oando climbs 10% as Company plans to release 2023 audited report

Onome Amuge

In a boost for OANDO Energy Plc, the company’s market capitalisation swelled 10 percent as investors raised their stakes in anticipation of the company’s third quarter earnings release and the 2023 audited financial statement.

With the announcement of the planned release of the audited report for financial year 2023 on October 23, 2024, investors’ sentiments and confidence in the company increased significantly, leading to a surge in bets and a corresponding rise in the company’s market value.

OANDO Energy Plc’s share price is on a rebound as investors’ valuation of the company’s growth strategy prompts renewed optimism.

According to analysts, the surge in the oil stock’s price was strengthened by the acquisition of Nigerian Agip Oil Company’s oil asset from Eni, a move that solidified the company’s position in the market and served as a boon for investors seeking long-term growth.

Oando Plc solidified its growth plan with the successful acquisition of Nigerian Agip Oil Company’s assets, valued at $783 million.

It is believed that the strategic move increased the company’s stake in multiple joint venture assets and bolstered its position in the industry.

In its continuing quest for expansion, Oando Plc was recently shortlisted by the Trinidadian government as one of three final contenders to acquire the state-owned refinery, Petrotrin, a development that further fueled investor interest in the energy company’s shares.

The potential acquisition of Petrotrin, a state-owned oil company in Trinidad and Tobago, presents an opportunity for Oando Plc to further expand its portfolio.

The refinery, which is located in Pointe-a-Pierre, Trinidad, was shut down in 2018 due to significant losses, with the country’s Prime Minister, Keith Rowley, noting that it was incurring annual losses of up to $2 billion.

Analysts have expressed confidence in Oando Plc’s chances of securing the deal for Petrotrin, a move that could prove beneficial for the company’s capacity and earnings.

The renewed confidence in Oando Plc’s prospects has resulted in a surge in its share price, from N70 to N77 within a week, boosting Oando Energy Plc’s market capitalisation to a N957.218 billion

While Oando Plc’s current share price of N77 reflects a commendable rebound, it still falls short of its 52-week high of N98.4 per share, reached before sell-side investor activity triggered a decline in the company’s valuation.

Despite the price pullback, Oando Plc’s commitment to growth and expansion, as evidenced by its recent acquisition of Nigerian Agip Oil Company and bid for Petrotrin, has reaffirmed investors’ belief in the energy company’s long-term potential.

In a recent disclosure to both the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE), Oando Plc, an indigenous energy group listed on both stock exchanges, announced a further delay in the completion of its 2023 audit.

Oando Plc, in its communication to market regulators and shareholders, explained that the recent acquisition of Nigerian Agip Oil Company on August 22, 2024, had contributed to the delay in the completion of its 2023 Audited Financial Statements (AFS).

Oando Plc has notified market regulators that, owing to the approval of an extension by the Nigerian Exchange Limited (NGX), the company is now targeting to submit its 2023 audited financial statement no later than Wednesday, October 23, 2024.

The new timeline, however, remains subject to receiving the requisite approval from the Financial Reporting Council of Nigeria (FRCN), the statutory body responsible for ensuring compliance with accounting and reporting standards in the country