Oando PLC’s shares experienced a significant boost in the third week of January 2025, rising by over 14% from an opening price of ₦62.50 to close at ₦71.80. This positive performance followed the company’s impressive third-quarter earnings report, which highlighted substantial profit growth and robust revenue figures.
Earnings Highlights
For the third quarter of 2024, Oando posted a post-tax profit of ₦13.6 billion ($17.2 million), a remarkable 510.48% increase compared to the ₦2.2 billion loss ($2.78 million) recorded during the same period in 2023.
Over the first nine months of 2024, Oando recorded a cumulative post-tax profit of ₦76.2 billion ($96.3 million), signaling a strong recovery and a solid financial position.
Revenue Performance
1.Third Quarter: Revenue stood at ₦1.1 trillion ($1.39 billion), representing a 15.7% year-on-year increase.
2.Nine-Month Period: Total revenue reached an impressive ₦3.1 trillion ($3.91 billion), with ₦2.9 trillion ($3.66 billion) coming from the supply and trading of crude oil and other petroleum products.
Oando also saw a 13.7% increase in its main operating income, totaling ₦39 billion ($49.3 million), attributed to continued exploration and production activities in Nigeria and São Tomé and Príncipe. Additionally, other operating income rose by 42.1% to ₦28.5 billion ($36 million), largely driven by foreign exchange gains.
Market Trends and Stock Performance
In 2024, Oando’s stock achieved a year-to-date performance of 528.57%, making it the leading stock in Nigeria’s oil and gas sector.
Key milestones in the stock’s journey include:
•January 2024: The stock began at ₦10.50 ($13.45).
•August 2024: A significant surge of over 200% occurred.
•October 2024: The stock peaked at ₦85 ($108.90) before retracing to ₦64.95 ($83.11) in November.
•January 2025: The stock rebounded, closing at ₦71.80 ($91.85) with indications of a potential upward correction.
Drivers of the Bullish Trend
Several factors contributed to the positive momentum:
1.Earnings Recovery: Oando’s Q3 2024 profit of ₦13.6 billion ($17.2 million) and cumulative nine-month profit of ₦76.2 billion ($96.3 million) demonstrated significant financial recovery.
2.Revenue Growth: A 15.7% increase in Q3 revenue and a total of ₦3.1 trillion ($3.91 billion) for nine months showed the company’s robust operating efficiency.
3.Foreign Exchange Gains: Over 90% of Oando’s other operating income stemmed from foreign exchange gains, boosting investor confidence.
4.Sector Leadership: Oando’s strong position in the oil and gas industry continues to attract investors.
Management Commentary
Wale Tinubu, CON, Group Chief Executive of Oando PLC, expressed optimism about the company’s trajectory:
“Our performance for the nine months ending September 30, 2024, underscores our resilience and steadfast commitment to providing value, even in a challenging operating landscape. With this solid foundation and a definitive growth roadmap, we are optimistic about our potential to deliver long-term, sustainable value to all our stakeholders.”
Oando PLC’s strong earnings and stock performance reinforce its position as a dominant player in Nigeria’s oil and gas sector. As investors respond to the company’s financial recovery and growth prospects, Oando’s stock continues to exhibit resilience and potential for further gains in 2025.
