Stock investors are still showing less interest in adding the shares of Oando Plc into their portfolio as equity trading data on the company continue to show low volumes.
The company’s share price has remained at N5.99 since technical suspension by market regulators.
Oando Plc is listed on both the Johannesburg and Nigerian Stock Exchanges. Trading data on Oando Plc at the Nigerian Stock Exchange (NSE) show as of November 22, 2017, 110,244 units of the company stocks were exchanged. Further details show: 376,189 units as at November 23; November 24 (61,040 units); November 28 (324,825 units); and November 29 (4,075 units) of the firm’s shares traded. An average of 2.06 million shares was traded daily on October 17, a few days before the technical suspension placed on the shares. Some 407,000 shares of Oando were exchanged yesterday.
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In a recent Quantitative Equity Report on Oando Plc by research analysts at Morningstar Incorporated seen by BusinessDay they noted that N5.91 is a fair value for the stock. Morningstar Incorporated is an investment research and investment management firm headquartered in Chicago, Illinois, United States.
The Lee Davidson-led team of Quantitative Research for Morningstar, Incorporated who are responsible for overseeing the methodology that supports the quantitative fair value assigned very high “Quantitative Uncertainty” score for Oando Plc, adding that the company’s financial health is “moderate”. The analyst’s projected 10-year stock total return for Oando Plc is in negative of 11.6percent.
Wale Tinubu, Group Chief Executive, Oando Plc had following the company’s nine-month to September 30 scorecard said: “Our third-quarter financials are reflective of the success of our strategic initiatives of Growth through our dollar earning upstream portfolio; Deleverage through recapitalization and asset divestments and the expansion of our oil export trading business. The proceeds from our business restructuring have been successfully used in improving our balance sheet with a reduction of N21billion in our net debt position from N230.6 billion as of December 2016 to N209 billion today. Despite prevailing headwinds, we continue to create value as seen in our improved performance four quarters in a row and remain confident about the resilience of our business model.”
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The Securities and Exchange Commission had notified the general public that it received two petitions from Dahiru Barau Mangal and Ansbury Incorporated. The Commission said it carried out a comprehensive review of the petitions and made the following findings amongst others; Breach of the provisions of the Investments & Securities Act (ISA) 2007; Breach of the SEC Code of Corporate Governance for Public Companies; Suspected insider Dealing; Related party transactions not conducted at arm’s length; and discrepancies in the shareholding structure of Oando Plc, among other.
As a result, the Securities and Exchange Commission (SEC) directed the Nigerian Stock Exchange (NSE) to place the shares of Oando Plc on technical suspension effective October 20, 2017, pending the outcome of Forensic Audit on the company by a consortium of experts made up of auditors, lawyers, stockbrokers and Registrars.
In the nine months to September 30, Oando Plc reported a turnover increase by 16percent to N383.5 billion compared to N329.9 billion (Q3 2016); Gross Profit increased by 148percent to N71.2 billion compared to N28.6 billion (Q3 2016); while Profit-After-Tax (PAT) increased by 120percent to N7.1 billion compared to a loss of N35.8 billion in Q3 2016.
IHEANYI NWACHUKWU
