Shares of Oando Plc have risen more than 39% on the Nigerian stock market, following a series of positive developments in early June 2025.
On June 4th, the company published its audited financial statements, reporting a pre-tax profit of N383.8 billion, a 272.72% increase from the previous year.
The growth was largely driven by higher oil revenues, which rose to N4.08 trillion, a 43.61% increase from the prior year’s figure of N2.84 trillion.
Alongside the earnings report, Oando announced that Afreximbank and Mercuria have upsized its reserve-based loan (RBL2) to $375 million, aimed at boosting productivity and operational flexibility.
Since both announcements, the stock has gained over 39% to reach N63.10, with trading volume exceeding 50 million shares, suggesting a possible market reaction to the developments.
Market trend:
Oando Plc opened in January 2025 at N68.40, attempting to recover from a decline that began in October 2024.
Despite rallying in the first week, January ended in the red, with 150 million shares traded, and the downward trend extended into February.
- By March 2025, the stock had dropped to N42.05, marking a notable low below the N45 level.
In May, sentiment around the oil and gas sector began to improve in the final week, leading to a modest recovery in price action.
Now, in early June 2025, following favorable developments, Oando has staged a correction, climbing above N55 and reaching N63.10 on 11th June.
Factors driving the bullish surge:
While the entire factors behind the rise might not be completely known, several key fundamental developments likely contributed to increased investor confidence.
Firstly, on July 4, 2025, Oando released its awaited Audited Financial Statements for FY 2024, reporting a significant rise in profitability.
- Pre-tax profit jumped by 272.72% to N383.8 billion, driven by a 43.61% increase in revenue, which reached N4.08 trillion on the back of strong sales.
- By product line, crude oil was the primary revenue driver, with contributions from gas and energy following.
- By region, international operations led the way with N3.6 trillion in revenue, while Nigerian operations contributed N755.3 million.
Oando’s total assets also rose sharply, increasing by 140.43% to N6.4 trillion. This growth was supported by the full acquisition of Nigerian Agip Oil Company Limited — a deal backed by Afreximbank.
Shortly after the earnings release, Oando announced an upsizing of its reserve-based loan facility (RBL2), giving it access to $375 million. This reserve-based loan, facilitated by Afreximbank and Mercuria, is expected to enhance productivity and operational flexibility.
Commenting on the development, Group Chief Executive Mr. Wale Tinubu stated:
“We are pleased to have completed this upsizing, a strategic milestone that will maximize value and expand our asset portfolio.
“Our Joint Venture holds extensive reserves with the potential to generate $11 billion in net cashflow to Oando over the asset’s life.”
