Oando Shares Surge Over 14% Following Strong Earnings Report

Oando PLC’s shares surged by over 14% in the third week of January, climbing from an opening price of N62.50 to close at N71.80.

The company reported a post-tax profit of N13.6 billion for the third quarter of 2024, marking a 510.48% increase from the previous year. This brought the total post-tax profit for the nine months ending September 30 to N76.2 billion.

For the third quarter, revenue reached N1.1 trillion, a 15.7% increase from the previous year, while total revenue for the nine-month period was N3.1 trillion.

A significant portion of this revenue, N2.9 trillion, came from the supply and trading of crude oil, along with refined and unrefined petroleum products.

Following the earnings release in mid-December 2024, Oando’s stock dipped slightly, reaching N62.50 on January 10, 2025.

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However, in the third week of January 2025, the stock rebounded, rising over 14% for the week.

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Wale Tinubu CON, Group Chief Executive of Oando PLC, shared insights on the company’s recent results:

“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.”

He further emphasized, “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 recorded an impressive year-to-date performance of 528.57% in 2024, establishing itself as the leading stock in the oil and gas sector.

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The year began with the stock price at N10.50, followed by a period of stagnation in the first quarter. However, the second quarter saw positive price movement.

The upward trend gained momentum in the third quarter, particularly in August when the stock surged by over 200%.

By October, it had surpassed N85 but later retraced to N64.95 in November. As of mid-January 2025, there are signs of a potential upward correction in the stock’s trajectory.

Oando’s latest earnings report for the third quarter has likely drawn attention from investors.

The company posted a post-tax profit of N13.6 billion for Q3 2024, a significant recovery from the N2.2 billion loss recorded in the same period last year.

This represents a 510.48% year-on-year increase, resulting in a total post-tax profit of N76.2 billion for the first nine months of the year. In terms of revenue, Oando reported N1.1 trillion for the third quarter, a 15.7% increase from the previous year.

Total revenue for the nine-month period reached N3.1 trillion. Main operating income increased by 13.7% to N39 billion, largely due to ongoing exploration and production activities in oil blocks on the Nigerian continental shelf, deep offshore, and in São Tomé and Príncipe.

Additionally, other operating income grew by 42.1% to N28.5 billion, primarily driven by foreign exchange gains, which accounted for over 90% of this figure, bringing the nine-month total to N308.7 billion. These results have likely piqued investor interest, leading some to consider buying in at a low of N65 as they navigate the current market conditions.