I got a tweet today pointing my attention to the apparent rise in Oando’s shares. At the close of trading today the stock had gained 10% (it gained 3.69% the day before)taking it’s share price to N18, the highest in One month. Wonder why? Well it appears there was a report on Business day which indicated its subsidiary Oando Energy Resources announced that “the upstream business of Oando plc, said its average oil production for the quarter ended March 31, 2014, was 4,531 barrels per day (bpd), representing a 22 percent increase over the same period last year”.
The CEO Pade Durotoye was quoted as saying
“Our first quarter was highlighted by positive operational results that saw us increase our year-on-year oil production by 22 percent. This increase in quarterly production from the Ebendo Field was as a result of a higher production uptime experienced due to reduced shut-in’s on the Agip trunkline evacuation route.”
The article also reveled some aspects of the result;
OER earned $32.2 million in revenue for the quarter, representing a 5 percent increase from the same period last year.
The company said a net loss of $32.9 million in net income for the quarter was primarily as a result of financing expenses relating to the ConocoPhillips acquisition.
It reported $10.3 million in cash flow from operating activities, compared with cash outflow of $18.0 million from the same period last year.
This news apparently excited investors, leading to the rally in the stock. It closed at N18.28 . Get the full article here
