Investors’ attention has been drawn to Oando Energy Plc, one of Africa’s top providers of energy solutions, on account of the group’s acquisition taste, which began in 2014 with ConocoPhillips.
In a latest rally, Oando Plc gained about 451% in the third quarter of 2024 due to investors’ healthy sentiment in the stock market, CardinalStone Securities Limited dropped the hint in a note.
“On a quarter-on-quarter basis, the all-share index lost 1.50%…OANDO gained +450.67% and led the gainers’ list, the firm stated. Trading data showed that the indigenous oil company share price rose to N82.6 on the Nigerian Exchange (NGX) due to sustained demand for oil stocks.
The price surge followed key events that improved the energy company’s earnings fundamentals and triggered valuation adjustments. Investment banking experts told MarketForces Africa that the Oando Energy Plc acquisition taste will keep the company’s market value uptrend.
The market has increase the market value of Oando’s 12.431 billion shares outstanding on the Nigerian Exchange to N1.026 trillion, according to trading data obtained from the local bourse.
Investors have been betting large on Oando Energy on the expectation that the company’s oil asset growth would generate more income, boost earnings per share and perhaps lead to improved dividend payments to shareholders.
Analysts believe that if deployed properly, the oil asset from its latest acquisition would drive earnings higher. For the company, a major event that bolstered earnings expectations was the completion of its acquisition of Nigeria Agip Oil Company from Eni.
In July, Eni secured the Nigerian Upstream Petroleum Regulatory Commission’s formal consent for the planned sale of its Nigerian Agip Oil Co., or NAOC, unit to energy services company Oando.
The Italian energy company announced the approvals and then proceeded with the completion of the transaction, which was first announced in September 2023. Afreximbank syndicated loans for the successful acquisition of the company, which raised the Oando oil asset significantly.
Eni noted that it will retain the 5% participating interest in the Shell Production Development Co joint venture with Shell, TotalEnergies, and Nigerian National Petroleum Corp.
Recall that Oando acquired ConocoPhillips’ Nigerian asset in 2014 to transform itself from a petrol retailer to an oil producer. #Oando Jumps by 451% in Q3-2024 on Successful Acquisition Jaiz Bank Value Increases by 11.2% to N86 Billion
-By Julius Alagbe