Energy Slips by 9% as Investors Exit Positions
Oando Energy Plc is trading negative during early trading hours in the equities segment of the Nigerian Exchange (NGX) after unimpressive earnings performance.
Investors exiting positions due to earnings downturn in the third quarters of financial year 2024 have triggered price pressures on the energy stock.
According to information obtained from the local bourse during trading hours, Oando Plc has lost about 9% of its market value on Tuesday as investors exiting positions. The stock is trading at N66.50 from previous close of N68.9 per share.
In a regulatory filing, the company reported that its earnings broke by 31% below its previous performance due to fluctuation in exchange rate. Revenue came stronger year on year at the end of the third quarter of financial year 2024.
Extract from its financial scorecard showed that revenue grew by 36% year on year to N3.189 trillion at the end of 9M in financial year 2024 from N2.349 trillion 12 months earlier.
The management expressed that its heavy revenue was positively impacted by exchange rate translations and higher crude oil volumes lifted in the period.
But the strong top line was offset by lower trading volumes, reduced natural gas and NGL volumes, and lower realised sale prices for natural gas and NGL.
At the end of the period, operating profit for the period declined by 23%, primarily driven by an increase in administrative expenses mainly due to foreign exchange losses from the revaluation of payables and borrowings.
Profit-after-tax for the period was N76.3 billion, representing a decline of 31%, driven by foreign exchange losses and net finance costs. #Oando Energy Slips by 9% as Investors Exit Positions#
Source: Marketforces.Africa