Get started
OANDO PLCOANDO PLCOANDO PLC

OANDO PLC

No trades
See on Supercharts
Overview Financials News
Ideas
Discussions Technicals Seasonals

OANDO trade ideas

Our opinion on the current state of OANDO(OAO)Oando (OAO) is an oil and gas company located primarily in Nigeria. It has listings on both the JSE and the Nigerian Stock Exchange. The problem with a share like this from a private investor's perspective is that it is highly risky. Firstly, it is a commodity share whose fortunes are determined by the international price of oil. Secondly, its business is located in Nigeria, which tends to be politically unstable. Oando's shares are also very thinly traded. On 31st May 2024, the company published its results for the 12 months to 31st December 2023, reporting a 71% increase in turnover and an after-tax profit of 74.4 billion naira. Borrowings fell 23% to $488.9 million. On 3rd April 2024, the company announced that trade in its shares had been suspended by the JSE pending the publication of its year-end results for 2022 and its interim results for 2023. The share price is now 9c, but it remains suspended.
JSE:OAO
by PDSnetSA
Our opinion on the current state of OANDO(OAO)Oando PLC (OAO) is an oil and gas company with significant operations in Nigeria and listings on both the Johannesburg Stock Exchange (JSE) and the Nigerian Stock Exchange. The company's shares present a high-risk investment profile for several reasons that are intrinsic to its operational context and the nature of its industry. **1. Commodity Price Volatility:** As an oil and gas company, Oando's financial performance is heavily dependent on the fluctuating international prices of oil. This exposes the company to global market trends and economic cycles over which it has little control. **2. Political and Economic Instability:** Operating primarily in Nigeria adds another layer of risk due to the country's political instability and economic fluctuations. This environment can affect operations and profitability through changes in regulation, fiscal policies, and other governmental actions that could impact the business. **3. Thinly Traded Shares:** Oando’s shares are thinly traded, which can result in liquidity issues for investors. This means buying or selling shares without affecting the price can be difficult, potentially complicating entry and exit strategies for private investors. **Recent Financial Performance:** - **For the year ending 31st December 2020:** Oando reported a substantial after-tax loss of 141 billion naira, indicating a downturn in business performance with a 17% drop in turnover. - **For the year ending 1st December 2021:** The company saw a reversal in fortunes, albeit on a much smaller scale, reporting a profit of 34.7 million naira. - **For the year ending 31st December 2022:** The company returned to a loss, posting an 81.2 million naira deficit. **Regulatory and Trading Issues:** - On 3rd April 2024, Oando’s share trading was suspended on the JSE, pending the publication of its year-end results for 2022 and interim results for 2023, reflecting regulatory concerns and potentially significant issues in financial reporting or operational performance. - Trading remains suspended as of the latest updates, with the share price last recorded at 9 cents. Given these circumstances, Oando represents a highly speculative investment. The combination of high operational risks, political and economic instability in its primary region of operations, commodity price dependence, and recent financial performance makes it a precarious choice for private investors seeking stable returns. Investors should exercise extreme caution, considering both the macroeconomic factors affecting the oil and gas sector and the specific challenges facing Oando. It is advisable to closely monitor developments related to the company’s regulatory issues, financial health, and the broader Nigerian political and economic environment before considering an investment in such a volatile entity.
JSE:OAO
by PDSnetSA
Our opinion on the current state of OANDO(OAO)Oando (OAO) is a Nigerian oil and gas company that operates both within Nigeria and internationally, with listings on the Johannesburg Stock Exchange (JSE) and the Nigerian Stock Exchange. The company’s shares embody high risk for several reasons, primary among them being its exposure to the volatile oil market and the political instability in Nigeria. Historically, Oando has faced significant challenges, including regulatory scrutiny and allegations of financial misconduct. In April 2018, trading of Oando's shares was suspended by the Nigerian Securities and Exchange Commission to allow for a forensic audit into allegations of corruption and insider trading. The outcomes of these proceedings have cast a long shadow over the company's reputation and operational stability. Further complicating matters, on June 3, 2019, the Nigerian SEC ordered certain board members to resign and imposed fines on the company, which Oando contested in court. This situation mirrors issues faced by other companies in Nigeria, such as MTN, indicating a pattern of contentious relations between corporate entities and regulatory bodies in the country. Financially, Oando has been under considerable pressure. In 2019, it was reported that the company's liabilities exceeded its assets, casting doubt on its ability to continue as a going concern. Although Oando reported a shift in corporate strategy to focus on dollar-earning assets, which included the sale of a significant stake in Axxela to Helios Investment Partners, its financial performance has been inconsistent. For the year ending December 2019, Oando posted a significant loss, and although there was a brief return to profitability in 2021, the company reported another substantial loss in 2022. The trading of Oando’s shares has been marked by low volume, indicating a lack of investor confidence and liquidity. This situation was exacerbated when the JSE suspended trading of its shares in April 2024, pending the publication of its overdue financial results for 2022 and interim results for 2023. When the company finally published its 2022 results, it revealed yet another loss. Given these circumstances, Oando represents a highly speculative investment with considerable risks associated with its financial instability, regulatory challenges, and the geopolitical environment within Nigeria. Potential investors should exercise extreme caution, considering the company’s history of volatility and the ongoing concerns about its financial health and regulatory compliance. The recommendation would be to avoid this stock unless one has a high tolerance for risk and a deep understanding of the Nigerian market’s complexities.
JSE:OAO
by PDSnetSA
Our opinion on the current state of OAOOando (OAO) is an oil and gas company located primarily in Nigeria. It has listings on both the JSE and the Nigerian stock exchange. The problem with a share like this from a private investor's perspective is that it is highly risky. Firstly, it is a commodity share whose fortunes are determined by the international price of oil. Secondly, its business is located in Nigeria which tends to be politically unstable. The Nigerian Securities and Exchange Commission suspended its shares for six months to conduct a forensic audit into allegations of corruption and insider trading which was lifted in April 2018 - but the report has yet to be published. On 3rd June 2019, the Nigerien Securities and Exchange Commission (SEC) issued a ruling in terms of which certain board members were to resign and the company was to pay a fine. The company said that the SEC's findings were without basis and immediately got a court order suspending the SEC's order. This process is very reminiscent of what happened to MTN in Nigeria. Oando's shares are also very thinly traded. From mid-October 2017 until April 2018, when not suspended, the share hardly traded at all and remained at its lows. The share has also fallen from its high of 1650c in May 2008 to its current level. Oando recently reported that it had repaid most of the $2,5bn debt which it incurred when acquiring oil and gas assets in 2014. On 1st April 2019, Business Day reported that Oando's auditors had warned that there was doubt that Oando could continue as a going concern because their liabilities exceeded their assets. On 22nd June 2022 the company published its results for the year to 31st December 2019. It reported a 6% increase in production with a 15% increase in turnover. The company made a loss of 207,1bn naira (the Nigerian currency) compared with a profit of 28,8bn naira in the previous period. The company said, "2019 witnessed the completion of our corporate strategy of divesting from our naira earning businesses to focus on a dollar-earning portfolio following the sale of our 25% residual stake in Axxela to Helios Investment Partners." On 29th March 2023 the company published its results for the 12 months to 31st December 2020 reporting turnover down 17% and an after-tax loss of 141bn naira. On 26th April 2023 the company published its results for the year to 1st December 2021 reporting a profit of 34,7m naira. The share price is now 13c - but it remains a very thinly traded, highly speculative investment. So our opinion is to leave this share well alone. On 3rd April 2024 the company announced that trade in its shares had been suspended by the JSE pending the publication of its year-end results for 2022 and its interim results for 2023.
JSE:OAO
by PDSnetSA