Okomu Oil Plc has had a year of extraordinary growth, and shareholders are now poised to reap the rewards of the company’s remarkable performance.
For the nine months ending September 2025, Okomu posted a profit of N60.33 billion, surpassing the full-year 2024 profit by 50%, and marking the highest profit in the past five years.
Revenue rose sharply to N174 billion, up 63% year-on-year, outpacing even the company’s full-year revenue in 2024 and establishing a new benchmark for the past half-decade.
Earnings per share (EPS) tell a similar story of growth and resilience.
- At N63.25 per share, EPS is up 113% YoY, the highest in five years, and has been growing at a compound annual growth rate (CAGR) of 90% over the same period.
- Yet, while EPS and profit have surged, dividends have historically lagged, growing a CAGR of 50%, reflecting a conservative payout strategy.
Investors who have been loyal to the stock know that Okomu tends to retain earnings to fund operational growth rather than over-distribute profits.
2025 interim dividends signal a shift
However, 2025 shows a clear shift in the company’s approach to rewarding shareholders.
The H1 2025 interim dividend of N30 per share is nearly four times the N8 per share paid in H1 2024, and the 9-month interim dividend of N10 represents a five-fold increase from the N2 per share recorded for the same period last year.
Combined, shareholders have already received N40 per share, equating to approximately N38.16 billion in cash payouts, or 63% of the nine-month profit.
Projecting the 2025 final dividend
Using historical payout patterns and the growth in interim dividends, a projected final dividend of N44 per share is reasonable and achievable.
In 2024, the final dividend was N26 per share, and scaling for the exceptional interim dividends paid in 2025 supports a total dividend of N84 per share for the full year.
This would mark a significant step in aligning shareholder returns with the company’s operational performance and cash flow strength.
Over the past five years, Okomu has generated N137.5 billion from operating activities, spent N54.4 billion on capital expenditure, and accumulated N83 billion in free cash flow, with retained earnings rising to N60.87 billion as of September 2025, ample evidence of the capacity to support higher dividends.
Share price momentum and investor gains
The company’s stock has mirrored its operational success.
From N444 at the start of 2025, Okomu’s share price climbed to N1,020, delivering 130% year-to-date gains for investors.
Those who took a position in December 2024 have enjoyed substantial capital gains in addition to interim dividends.
The upcoming N10 dividend payable on November 14, 2025, for shareholders on record as of October 31 further reinforces the wealth creation narrative.
Looking ahead, the company’s strong fundamentals, profitability, and free cash flow underpin a six-month price target of N1,200–N1,300, supported by the projected N84 final dividend in April 2026.
By paying a robust final dividend, Okomu not only rewards investors for their loyalty but also strengthens confidence in the stock.
Okomu Oil’s story in 2025 is one of sustained growth, operational excellence, and strategic value creation. Profitability, cash generation, and capital allocation have never been stronger.
Yet, it is the shareholders who have carried the stock through past years of steady growth who deserve a proportionate reward.
- A final dividend of N44 per share, bringing the total payout to N84, would not only recognize this loyalty but also set a precedent for a more shareholder-friendly approach in the years ahead.
In a year of record profits and market-beating returns, Okomu Oil Plc demonstrates that strong corporate performance and shareholder reward need not be mutually exclusive.
Investors who have supported the company are now in line to see that support reflected not only in capital appreciation but in a dividend payout that matches the boom.
