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. 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.
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.
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Snapshot: 4/2024
#3 - MIXTEL- MIX- Added 2023-12-28 - 86.44% Gain since added
#4 - HARMONY - HAR- Added 2023-11-16 - 70.15% Gain since added
Full list available to PDSnet subscribers only.