The Nation Newspaper

Category: Equities

  • Moniepoint renews onboarding with referrals

    Moniepoint renews onboarding with referrals

    Moniepoint Microfinance Bank (Moniepoint MFB) has relaunched its personal banking referral programme as part of efforts to drive onboarding of new customers.

    Moniepoint MFB had paused onboarding as the Central Bank of Nigeria (CBN) scrutinised and tightened loopholes in the financial technology (fintech) services sector.

    The referral programme is designed to reward users every time their friends or family perform a transaction on Moniepoint after signing up with their referral link. Through this, millions of people will earn well over N100,000 from referrals alone.

    Moniepoint’s technology has powered over three million businesses across Nigeria, and with its reliable infrastructure now in the hands of personal users, it now enables seamless payments for many across the country.

    Read Also: Moniepoint ranked Africa’s top tier fintech in second year

    With referrals linked to transfers, a leading payment method for many in Nigeria, this referral program will provide extra income for many of its users.

    Managing Director, Moniepoint MfB, Babatunde Olofin, said the customer-centric referral programme supports the bank’s focus on driving financial inclusion while helping to accelerate its vision of creating a society where everyone experiences financial happiness. 

    “We know how important seamless financial transactions are, and we’ve seen first-hand the power of peer to peer recommendations and how word-of-mouth referrals can grow a customer base and increase revenue. Given our strong customer obsession and the strings of commendations which we have received that validate the work we do in providing peerless financial services, we want to provide our customers with rewards even as they continue to share these positive experiences with the Moniepoint brand,” Olofin said.

  • Senate confirms SEC management

    Senate confirms SEC management

    The Senate has confirmed Dr. Emomotimi Agama as the Director General of the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator.

     The Senate also approved the appointment of Frana Chukwuogor as Executive Commissioner, Legal and Enforcement; Mr Bola Ajomale as Executive Commissioner, Operations and Mrs. Samiya Usman as Executive Commissioner, Corporate Services.

    The confirmation of the appointments followed the presentation of the report of the Committee on Capital Markets chaired by Senator Osita Izunaso, representing Imo West (Orlu) constituency of Imo State.

    Izunaso told the Senate that the nominees met the requirements to be appointed by President Bola Tinubu.

    “That they were eminently qualified for the positions. They passed all security checks and answered relevant questions during the screening,” Izunaso said.

    After his presentation, the Senate voted and confirmed the nominees.

    Deputy Senate President,   Barau Jibrin, who presided at the confirmation, charged the appointees to carry out their jobs diligently for the betterment of the country.

    “They should do their work in the best way they can to turn around the economy of Nigeria. They should try not to let Mr President down or the nation. They should do their best to use that institution to promote the wellbeing of this country,” Jibrin said.

    Tinubu  on April 19  appointed Agama to take over from Lamido Yuguda.

    Agama’s appointment has been hailed by capital market stakeholders who described him as a technocrat that would boost the birthing of the Tinubu administration’s $1 trillion economy.

    Speaking shortly after his clearance by the Committee last week, Agama, said he will accelerate the development of the capital market in a manner that would boost wealth creation, attract investments and create jobs for Nigerians.

    Read Also: Senate urges Fed Govt to review strategies to curb rising insecurity

    According to him, the new team was appointed by Tinubu to change the narrative of the capital market and reposition it to the path that would boost economic growth.

    “We are bringing on board innovation, development. We are going to change the narrative of the Nigerian capital market. We are going to turn it around. That is the essence of our appointed by Mr. President. With this team, we assure Nigerians that we’re going to do the best that the President has the desire to do.

    “So, we should all wait to see what is going to happen. Our desire is to move this market forward. And to help in achieving the President’s $1trillion economy in the shortest possible time,” Agama said.

    He described the capital market as the barometer of the economy, noting that the Commission would implement innovative polices and programmes that will create world-class companies in such a way that will ensure redistribution of wealth.

    “You must understand that the capital market is actually the barometer of any economy. And without a strong capital market, then, of course, the economy will not do very well. The intention of this management is to make sure that we mainstream the capital market in the Nigerian economy.

    “And in doing that, we’re going to be able to provide employment, change the narrative, and create companies that are going to be top world-class companies in such a way that there will be what we call redistribution of wealth.

    “The President has an intention to change the lives of Nigerians. And the capital market is one of the vehicles that the President intends to use to achieve that. That is why the President has set up a team like this to be able to do that,” Agama said.

  • FMDQ Exchange lists Eat & Go Finance’s N1.15b bond

    FMDQ Exchange lists Eat & Go Finance’s N1.15b bond

    FMDQ Securities Exchange (FMDQ Exchange)  has approved the listing of Eat & Go Finance SPV Plc’d N1.15 billion Series 1 Fixed Rate Bond.

    The bond is the first tranche under a  N35 billion bond issuance programme established by Eat & Go Finance SPV Plc, a special purpose funding vehicle established by Eat ‘N’ Go Limited (Eat ‘N’ Go) to raise finance from the debt markets through the listing of debt securities.

    Eat ‘N’ Go is a master franchisee for Domino’s Pizza, Cold Stone Creamery and Pinkberry Gourmet Frozen Yoghurt brands.

    Read Also: FMDQ appoints CBN deputy governor, Dattijo, as board chairman

    The company has more than 175 stores across Nigeria and Kenya, presenting significant growth opportunities.

    The proceeds generated from the Eat & Go SPV PLC Series 1 Bond will be used by to offset existing debts, fund working capital requirements, and enhance sales infrastructure across the country.

    FMDQ Exchange reiterated its commitment to drive transformative changes in the Nigerian debt markets and the broader economy through steady innovation and efficiency.

    “By offering prompt and cost-effective securities admission services, FMDQ Exchange facilitates seamless access to capital and investment assets for issuers and investors respectively, within the Nigerian debt markets, bolstered by a comprehensive suite of financial solutions,” FMDQ Exchange stated.

  • Interswitch, ACI Worldwide plan customer engagements

    Interswitch, ACI Worldwide plan customer engagements

    Interswitch, one of Africa’s leading integrated payments and digital commerce companies, and ACI Worldwide, a global leader in real-time payments software, are set to host engagement sessions for their customers and key stakeholders in Nigeria and Kenya, with the aim of deepening digital payment and driving sustainable growth across Africa.

    The events, themed “Modernizing Digital Payment Infrastructure for Innovation, Growth & Commercial Advantage,” are slated for June 11 in Lagos, and June 14, 2024, at the Radisson Blu, Upper Hill Nairobi, Kenya.

    Africa is a high-potential region for real-time payments, with 8.2 billion real-time payment transactions in 2023, projected to hit 21.7 billion by 2028, a 2023-2028 CAGR of 21.2 per cent, according to the 2024 Prime Time for Real-time published by ACI Worldwide in partnership with GlobalData, a leading data and analytics company.

    Read Also: Interswitch boosts Reps Committee members’ digital, e-banking skills

    ACI Worldwide and Interswitch, whose alliance spans over 20 years, recently extended their long-term partnership to enable Interswitch to offer new innovative products and services in Nigeria and 31 other markets across Sub-Saharan Africa.

    Interswitch will incorporate the full range of payment solutions that form part of the ACI Enterprise Payments Platform into its technology stack, enabling banks and other financial institutions across these markets to transform and modernize their payment infrastructure. Interswitch and ACI are committed to providing innovative digital payment solutions that simplify and enhance payment processes for businesses across the continent.

    Conversations during the events will spotlight topical issues and trends, such as cross-border payments, modernization of core payment infrastructure for banks, open banking, card and non-card payment schemes, and securing transactions with next-generation technology stack, among other issues that are shaping the payment ecosystem across the continent.

  • Dangote, others lead equities to N13.3tr gain

    Dangote, others lead equities to N13.3tr gain

    Investors in Dangote Cement Plc have seen a double in the value of their portfolios over the past five months.

    Dangote Cement, a large-cap stock and leader in cement sector, highlighted the bullish trading that had seen Nigerian equities gaining N13.28 trillion in five months.

    Benchmark index at the Nigerian Exchange (NGX) indicated average return of 32.8 per cent for the five-month period, equivalent to net capital gain of N13.28 trillion.

    Dangote Cement’s share price meanwhile rose by 105.28 per cent to close May 2024 at N656.70 per share as against its opening price of N319.9 per share for the year.

    The performance of Dangote Cement drove the NGX Industrial Index, which also tracks cement companies, to a five-month return of 73.08 per cent, the highest by any sector. The sectoral index closed at 4,694.42 basis points in May 2024.

    Consumer goods and oil and gas companies were also major gainers during the period. The NGX Consumer Goods Index appreciated by 39.5 per cent to close at 1,564.19 basis points. The NGX Oil and Gas Index gained 24.07 per cent to close at  1,294.16 basis points. Also, the NGX Insurance Index rose by 14.17 per cent to close at 367.23 basis points.

    However, investors were cautious with banking stocks, as the recapitalisation exercise and many reforms in the sector unfold. The NGX Banking Index dropped by 11.13 per cent to close May 2024 at 797.37 points

    The All Share Index (ASI)- the value based common index that tracks all share prices at the NGX, rallied to 99,300.38 basis points by May 2024 from its year’s opening index of 74,773.77 points, representing average return of about 32.8 per cent for the period.

    Aggregate market value of all quoted equities closed May 2024 at N56.172 trillion, representing an increase of N15.25 trillion or 37.28 per cent from N40.917 trillion recorded as opening  value for the year.

    Read Also: Dangote’s businesses total revenue to surpass $30b by December

    The difference between the ASI and market value was largely due to residual increase from primary listings during the period. The ASI is weighted to neutralise distortions from primary activities and keep it as accurate gauge of secondary market. Market value runs on direct addition and subtraction of values, and as such, susceptible to immediate effect of primary market activities. Overtime, both indices narrow to a single trend as the market absorbs the effect of any primary activity.

    With average return of 32.8 per cent growth, the Nigerian market maintains its position as the best- performing market in Africa.

    Capital market analysts attributed the market’s performance to a substantially positive corporate earnings, macroeconomic reforms and gradual return of foreign investors among others.

    Managing Director, HighCap Securities Limited, Mr. David Adonri, said the market performance reflected investors’ sentiment.

    He noted that the emergence of President Bola Tinubu has energised the stock market as investors appeared to have confidence in his ability to rejig the economy and implement economy-friendly policies.

    He was optimistic that the stock market might maintain its positive momentum in the second quarter of 2024, against the backdrop of banking sector recapitalisation that is expected to trigger investors buying rights issues from listed banks.

  • Nigeria gets additional $925m disbursement from Afreximbank, NNPCL’s $3.3b crude oil deal

    Nigeria gets additional $925m disbursement from Afreximbank, NNPCL’s $3.3b crude oil deal

    Nigeria has received additional disbursement of $925 million under a syndicated $3.3 billion crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited.

    The latest disbursement brought total current funded facility size to $ 3.175 billion, after initial funded commitments of $2.25 million in December 2023.

    Arranged and coordinated by African Export-Import Bank (Afreximbank) the accordion arrangement saw the raising of a combined total of $925 million from a consortium of crude oil off-taker lenders including Oando Group and Sahara Energy Resource Limited among others.

    The transaction is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts.

    President, African Export Import Bank (Afreximbank), Prof. Benedict Oramah said the milestone achieved thus far, on the $3.3 billion facility, demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa.

    “It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities,” Oramah said.

    Read Also: Afreximbank grows net interest income by 32% in Q1

    He noted that the facility was ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.

    He said the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.

    Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC) Limited, Mallam Mele Kyari commended Afreximbank for its investment philosophy and active interest in co-creation of prosperity.

    “The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations,” Kyari said.

    He further assured Afreximbank and all investing communities of NNPCL’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally.

  • VFD Group to sell 30% equity stake in Abbey Mortgage Bank

    VFD Group to sell 30% equity stake in Abbey Mortgage Bank

    • N30b capital raising underway

    VFD Group Plc plans to sell 30 per cent equity stake in Abbey Mortgage Bank Plc and raise additional N30 billion as part of a strategic growth project aimed at boosting shareholders’ value.

    Directors of the investment group extensively discussed and approved the strategic decisions at their latest meeting.

    Group Managing Director, VFD Group Plc, Nonso Okpala, said the company remains dedicated to maintaining a robust capital base to effectively navigate evolving market conditions.

    To support this commitment, the group plans to raise an additional N30 billion, pending approval from shareholders at the upcoming annual general meeting (AGM).

    While the specific form of this capital raise, whether through debt or equity, are yet to be finalized, the significant infusion will undoubtedly strengthen the company’s financial position and support future initiatives, acquisitions, and the growth capital required for investee companies’ expansion.

    The board also approved the strategic sale of up to 75 per cent of the group’s stake in Abbey Mortgage Bank Plc, representing up to 30 per cent of the bank’s outstanding shares.

    Okpala said the decisions reflect the group’s ongoing commitment to sustainable growth, prudent financial management, and maximizing shareholder value.

    According to him, the decision aligns with ongoing strategy to optimize portfolio in response to market conditions.

    “By taking this step, we aim to unlock significant value for our shareholders and strengthen our investment strategy. After careful analysis of market dynamics, we believe this move will enhance our ability to capitalize on future opportunities,” Okpala said.

    Read Also: VFD Group posts N2.62b profit in Q1

    Also, the board discussed the establishment of a capital market holding group, anchored by Anchoria Capital Group Limited. This strategic consolidation will encompass the group’s interests in Anchoria Asset Management Limited, Anchoria Investment & Securities Limited, and Kairos Capital Limited.

    According to the group, the synergies within this group are expected to enhance operational efficiency, improve service delivery, and position us for sustained growth in the capital market space.

    The board has approved a bonus issue of four new shares for every one share held as of June 14, 2024.

    The group noted that the bonus issue underscored the group’s confidence in the company’s prospects and aligns with its unwavering commitment to shareholder value creation, as stated by Group Chairman, Olatunde Busari.

    “We wish to affirm that our decisions are guided by a long-term vision to create enduring value for our stakeholders. We remain steadfast in our commitment to transparency, accountability, and excellence in all our endeavours,” the group stated.

  • NETCO grows operating profit by 137%

    NETCO grows operating profit by 137%

    The Nigerian National Petroleum Company Limited (NNPCL) Engineering and Technical Company (NETCO), a subsidiary of the NNPCL, recorded 137 per cent increase in operating profit in  2023.

    This was disclosed by the Chairman of the company’s Board of Directors and Executive Vice President, Downstream, NNPC Limited, Adedapo Segun, at the company’s 34th annual general meeting (AGM) in Lagos.

    Segun explained that NETCO recorded a 101 per cent revenue increase in the year 2023, reflecting a turnaround in operating results, which rose by 137 per cent reversing the previous year’s deficit.  He also noted that there was a 145 per cent rise in the company’s gross profit compared to the previous year.

    Also speaking at the AGM, Managing Director of NETCO, Dr. Tonye Alagba, said the company is focused on growing its business portfolio in 2024 and beyond.

    “To achieve this, the company is working strategically to expand its service offerings within the oil and gas industry in 2024, invest in the development of human and other resources, reduce direct and overhead resources and minimise risks,” Alagba stated.

    Read Also: NETCO posts 137% in operating profit for 2023

    He further explained that the company aims to increase its market share by at least five per cent through participation in mainstream Engineering, Procurement and Construction (EPC) projects, stressing that the company will bid for a minimum of 32 Tenders with a target of securing at least 15 contracts.

    He listed other targets to include: a 21-day invoicing cycle; a minimum of 85 per cent debt collection efficiency; a minimum customer satisfaction rate of 71 per cent; acquisition of critical assets such as fabrication yards and offshore logistics support base; and development of exclusive collaborations with key technical partners like KBR and Petrofac, amongst others.

    NETCO is a subsidiary of NNPC Limited with the mandate of delivering qualitative, integrated and cost-effective Engineering, Procurement & Construction Management (EPCM) services for Nigeria’s Oil & Gas industry and beyond.

  • Fidelity Bank launches N127.1b combined rights, public offer

    Fidelity Bank launches N127.1b combined rights, public offer

    • Recapitalisation’s first offers debut

    Fidelity Bank Plc yesterday completed all arrangements to raise N127.2 billion through a combined rights and public offer, in the first capital raising under the banking recapitalisation exercise mandated by the Central Bank of Nigeria (CBN).  

    Directors and professional advisers to Fidelity Bank signed off the offer documents at a signing ceremony at the bank’s headquarter yesterday in Lagos.

    The signing ceremony followed approvals from all regulators and shareholders and marked the end of all pre-offer processes, paving the way for the offers to open for public subscription.

    Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank will also simultaneously be offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

    The acceptance and application lists for the rights issue and public offer are expected to open on Thursday, June 20, 2024 and close on Monday, July 29, 2024.

    The rights circular for the issue, which contains a provisional allotment letter and the participation form, will be mailed directly to shareholders of the bank. Printed copies of the public offer prospectus can be obtained at the offices of Fidelity Bank and the issuing houses during the public offer application period.

    The combined offer is a part of the bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the CBN on March 28, 2024.

    The bank expects that the additional equity capital to support its efforts to drive sustained growth and diversification of earnings base.

    The bank’s shareholders had already approved the rights issue and public offer at the extra-ordinary general meeting held in August 2023.

    Read Also: Fidelity Bank outperforms banks, stock market with 507% gain in five years

    Managing Director, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, yesterday said the net proceeds of the combined offer would be applied towards investment in information technology infrastructure, business and regional expansion, and investment in product distribution channels.

    Chief Executive, Stanbic IBTC Capital, Oladele Sotubo, the lead issuing house to the offer, commended the bank’s management team for their commitment towards executing the combined offer.

    He noted that the bank’s efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks were commendable.

    He expressed confidence that the offer would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.

    Stanbic IBTC Capital is the lead issuing house to the combined offer. The joint issuing houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited.

    A recent review had shown that Fidelity Bank outperformed all major market indices for measuring returns at the Nigerian stock market, with the bank’s average annual return over the past five years twice the average return by the overall market and almost four times of average return in the banking sector.

    A review of official trading reports at the Nigerian stock market showed that investors in Fidelity Bank have earned more than 507 per cent in capital gains over the past five years, between May 31, 2019 and May 31, 2024

    Fidelity Bank’s share price rose by 507.14 per cent over the period, representing average annual capital gain of 101.43 per cent. This significantly exceeds all other major return benchmarks, including the banking sector.

    With 507 per cent capital gain in five years and average annual gain of more than 100 per cent, the return analysis implies that investment in Fidelity Bank is more attractive than other class of assets, including fixed-income securities such as government and corporate bonds; real estate investment and mutual funds among others.

    These returns underscore Fidelity Bank’s immense value as a stock for all times, helping investors to hedge against inflation while preserving significant long-term value.

    The high divisible nature of shares investment and high free float of Fidelity Bank, which makes the bank’s shares easily available, underline the bank as a most attractive investment option for all cadres of investors- small, medium and high networth; retail and institutional investors.  

    The All Share Index (ASI) – the common, value-based index that tracks all share prices at the Nigerian Exchange (NGX), which is widely regarded as Nigeria’s benchmark for equities market, recorded a five-year return of 219.61 per cent, an average annual return of 43.9 per cent.

    Contrary to the significantly above average performance of Fidelity Bank, the NGX Banking Index-which tracks the banking sector, doubled by 120.53 per cent over the five-year period, representing average annual return of 24.11 per cent, more than 77 percentage points below Fidelity Bank’s average return.

    Two other major price indices- the NGX 30 Index and NGX Main Board Index, recorded five-year cumulative return of 185.73 per cent and 265.6 per cent respectively, representing average annual gain of 37.15 per cent and 53.1 per cent respectively.

    The NGX 30 Index tracks share prices of the 30 largest companies at the stock market while the NGX Main Board Index represents the largest and most diversified group of listed companies at the stock exchange. Fidelity Bank is quoted on the main board, like most other major banks and companies at the stock market.

    The average annual return of 101.43 per cent underlines that Fidelity Bank provides substantial return for investors, even where such investors had borrowed money at the ruling interest rate and the invested fund was adjusted for impact of inflation rate.

    Nigeria’s inflation rate peaked at a high of 33.69 per cent in April 2024 while the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) recently increased the Monetary Policy Rate (MPR), otherwise known as benchmark interest rate, to 26.25 per cent.

    Fidelity Bank’s share price, which closed May 31, 2019 at N1.68 per share, rose successively to N10.20 per share by the end of May 2024. The ASI had, during the period, rose from its opening index of 31,069.37 points to close weekend at 99,300.38 points. The NGX Banking Index rose from 361.57 points to 797.37 points. The NGX 30 Index, which opened the period at 1,286.68 points, closed the period at 3,676.44 points. The NGX Main Board Index appreciated from 1,267.54 points to close weekend at 4,634.31 points.

  • Oando’s N104.1b profit rallies investors

    Oando’s N104.1b profit rallies investors

    Oando Plc has recorded nearly the highest possible gain at the Nigerian stock market since the release of its latest financial and operational reports.

    Investors have shown strong positive response to the latest earnings reports , which showed a major recovery for the indigenous energy provider.

    Oando had at the weekend released its results for the year ended December 31, 2023 showing a pre-tax profit of N104.1 billion, in a major turnaround from recent streak of losses.

    Despite the negative overall market situation, Oando has been a major contrarian stock. In the week’s opening trading session, Oando’s share price recorded the second highest gain of 9.75 per cent to close at N12.95 per share.

    Yesterday, Oando also closed with the third highest gain of 9.65 per cent to close at N14.20 per share.

    The All Share Index (ASI)- the benchmark index that tracks share prices at the Nigerian Exchange (NGX), had indicated average decline of 0.11 per cent for the entire market on Monday. It dropped further by 0.07 per cent yesterday.

    Investors are opening up buy orders for Oando’s shares, staking at premium as high as almost the market’s maximum highest daily allowable percentage change of 10 per cent.

    Key extracts of the 12-month interim report showed significant growths across key performance indicators, strengthening optimism on the outlook of the energy group, which recently signed a deal to acquire Eni’s shares in one of its Nigerian subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    Turnover rose by 71 per cent from N1.9 trillion in 2022 to N3.4 trillion in 2023. As against net loss of N81.2 billion in 2022, the company recorded net profit of N74.7 billion in 2023. Pre-tax profit stood at N104.1 billion in 2023, compared with pre-tax loss of N61.84 billion in 2022.

    The report also highlighted significant reduction of 23 per cent in the group’s upstream borrowings from $635.6 million in 2022 to $488.9 million in 2023.

    The performance of the group was driven by considerable improvements in major business categories with trading operations rising by 50 per cent. Traded crude oil volumes rose to 32.8 million bbls in 2023 as against 21.8 million bbls in 2022. Traded refined petroleum products dropped by 15 per cent to 1.646 million MT in 2023 compared with 1.938 million MT in 2022.

    The upstream saw increase in production from 20,703 boepd in 2022 to 20,837 boepd in 2023, despite the challenges in the oil producing region. Oil production stood at 6,024bbls/day in 2023 as against 4,939bbls/day in 2022. Natural gas production stood at 14,572boe/day in 2023 compared with 15,292boe/day in 2022. NGL production was 241bbls/day in 2023 as against 472bbls/day in 2022.

    The release of the 2023 results brings the company a step closer to being in line with regulatory requirements for all listed companies.  It indicates that by the end of this year, Oando will be on track with its peers in reporting results thus giving confidence to shareholders and investors on the company’s current state and future.

    2023 has seen Oando push forward with its growth agenda, recording positive highlights, including the signing of a Sale & Purchase Agreement (SPA) with Italian oil major, Eni to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).

    In addition, its clean energy arm, Oando Clean Energy Limited (OCEL) launched its electric mass transit buses in partnership with the Lagos State government, signaling that things are beginning to look up for the indigenous giant.

    Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said the results showed that the company has weathered the storm and on track to consolidate future growth.

    According to him, despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, the profit after tax of N 74.7 billion in 2023 was largely driven by increased trading volumes due to strategic global partnerships and net foreign exchange gains on the group’s foreign currency denominated assets as against losses on foreign currency denominated liabilities.

    He noted that the milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd, marked a pivotal moment for the company as it is poised to unlock substantial synergies in the near future.

    “Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders.

    Read Also: Umahi condemns destruction of 2nd Niger bridge superstructure

    “Having weathered the storm of recent years, our latest results provide a foundation for us to consolidate and build for the future. With our planned acquisition of NAOC, we are positioned to take full operatorship and drive-up outputs, value and efficiencies.”

    “Moreover, our foray into and leadership in clean energy expand our footprint as a fit and proper integrated energy company with our feet firmly planted in today’s realities and the possibilities of the future,” Tinubu said.

    Nigeria had seen a decline in national oil output, precipitated by pipeline vandalism, oil theft and illegal refining, against this backdrop Oando’s Upstream operations saw average daily production increase marginally by one per cent to 20,837 boepd in 2023 vs 20,703 boepd in 2022.

    Reacting to the results, shareholders had earlier expressed optimism on the performance outlook of Oando Plc.

    Shareholders said the recovery, from previous streak of losses, underlined the relentless efforts of the board and management to turn around the company.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, described the latest earnings report of Oando as a “cheering news” to shareholders.

    He said sustaining such performance would bring much joy and celebration to shareholders, urging the management of the company to improve on the performance in the next quarters.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, said shareholders invest in companies to reap rewards and are always happy to see a positive turnaround in the fortunes of companies.

    “I’m very glad and excited about the news. This shows that the board and management are not relenting in turning around the company to profitability. We hope the same trend will continue for the first and second quarters of 2024. We hope the 2023 profit is sustained in many years to come.

    “The reason we invested is to get good returns on our investment, either through dividend or capital appreciation. So, we are happy and glad for Oando’s 2023 financial results,” Bakare said.

    Chairman, Ibadan Zone Shareholders Association (IBZA), Mr. Eric Akinduro, said there were all indications that Oando has gotten out of the wood and shareholders may be in for better returns.

    “It is our expectation that the trend is sustained so that the shares can appreciate for investors to enjoy capital appreciation,” Akinduro said.