On January 31, Oando’s share price plunged 10%, closing at ₦68.40, down from ₦76 the previous day.
This sharp decline immediately caught investors’ attention, with many seeking the reason.
Data from the Nigerian Exchange (NGX) revealed that investors sold off about ₦2.22 billion worth of Oando shares, contributing to a bearish end for January.
As a result, the NGX All-Share Index dropped by 0.24%.
Oando’s 2024 financials showed a slight increase in net income, rising to ₦65.5 billion from ₦60.3 billion in 2023.
However, with a revenue of ₦4.1 trillion, the company’s profit margin remained at just 2%, and earnings per share (EPS) stayed unchanged at ₦5.
Read Also; What Nigerian E-Commerce Companies Are Doing To Stop Cybercrimes
The operating margin of only 5%, coupled with a disappointing operating profit of ₦220.2 billion, failed to meet investor’s expectations.
Oando had hoped that its acquisition of NAOC’s assets in 2024 would increase oil output and deliver stronger returns, boosting its total assets by 181%.
However, the company’s financial results didn’t live up to the high expectations set by the acquisition.
Personal finance expert, Muktar Mohammed, pointed out that unimpressive earnings often lead to sell-offs, which Oando experienced.
Although Oando’s long-term potential remains, the 2024 results have left investors questioning whether the company can fulfil its growth promises, making them cautious about its future.
