₦airaland Forum

customstreet:
Welcome OKITIPUPA OIL PALM PLC to NASD prior to final migration to NGX🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏

Mfunkynation:
Good morning,
please will there be any market today?

zendi:
If Aliko Dangote or Bill Gates had relied on you for money-making advice, they would have become bookworms instead of what they are today. Was it illiteracy that led the guy here to come and craft that post?

KayOn1:
9 digits na 100M+ from compounding 5k. Definitely will like to understudy how you did it. Will you take me under your tutelage
** I am sure you have a spreadsheet detailing how you arrived at your figure.

*** Great advice all the same.

customstreet:
Welcome OKITIPUPA OIL PALM PLC to NASD prior to final migration to NGX🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴👏👏👏👏👏👏👏👏👏👏👏👏👏👏👏

W0t0w0toman:
When you start with 50k, it give you the drive and motivation to hustle harder and invest more, as well as reinvest your returns, that is how I did it.

Omooloriredade:
My commentary on Oando results to date. Since it's Oando we are talking about here, permit me to start with disclaimers.

1. This is not a recommendation to buy, sell or hold Oando.
2. I don't have a finance or investment background and I'm not licensed to provide investment advice.
3. I could be sincerely wrong. I have been wrong many times before.
4. I'm not suggesting the market will rerate Oando's SP off the back of results released to date.


Cons
1. Risk of Oando being delisted from the NGX. Process will be to acquire minority holdings before delisting. N7 as per SOA is highly unlikely if it were to eventuate.
2. Delay in finalisation of the Oando vs NAOC deal.
3. Negative equity / retained earnings.
4. Dividend income unlikely in the near future due to the above.
5. History of late filing of results / regulatory non-compliance.
6. Management have a reputation of being dodgy.
7. Oando carries sustantial debt and impairment in its books.
8. Production or operations interruptions due to militancy in the Niger-delta region.
9. If it remains listed, Oando needs to prove to the market that it has turned the corner and it's upwards and onwards from here. It remains to be seen.

Pros
1. Recent flurry of earnings release if sustained may signal a change for good.
2. Management has indicated a desire to release results as and when due according to latest media release.
3. A return to profitability in recent results (Audited FY'22 and unaudited FY'23).
4. The return to profitability is despite the reduction in the average realised prices of Oil, Gas and NGLs. Increased Oil production minimised the impact to revenue in the E&P segment.
5. Production can be cranked up to improve revenue and margins.
5. The E&P segment of the business is the "money spinner" - higher profit margins. The trading arm is the cash cow albeit with low margins. Please see note 3, page 23 of unaudited FY'23 results for details.
6. Management has indicated a desire to wind down trading in low margin refined crude products (PMS, diesel etc) hence the recent sell off of assets to NNPC and the noticeable decline in reported revenues in that business segment.
7. Back to the E&P, any increase in production will lead to remarkable profitability of the group. This may be reflected in the FY'24 results if Oando is able to secure Ministerial consent and regulatory approval required to close the NAOC deal. It will double production numbers instantly. Please refer note 17, page 27 & 28 of unaudited FY'23 results for details.
8. Management also noted the marginal production increase in was a result of repairs of shut in wells offset by persistent sabotage activities. If these wells come back online this FY, there may be a sustantial increase in production numbers leading to improved margins and sustained profitability.


Peer Comparison
1. Seplat is heads and shoulders above Oando in terms of quality of management, filing of results, regulatory compliance, business & organisational structure and operations.
2. Seplat's PE is 36.77 based on the FY'23 EPS of 92.75 and SP of N3,410.
3. Simplistic comparison only - if we assume this is a fair industry PE and forget Oando's woes for a second, the market could potentially value Oando at 36.77 x N6 = N220.62. However, in my opinion, this is practically impossible at this stage with a history of delayed and negative results, no dividends or returns to shareholders in years, negative equity etc.

Again, I'll make a reference to the E&P business segment of Oando Plc. The company (Oando) through it wholly owned subsidiary (Calabar Power Ltd) purchased the entire 2.22% holding of M1 Petroleum ltd in OEPH at a consideration of $1.70 per share (yes, the E&P is that valuable). Actually, I'm unable to confirm the MCAP based on this price (no idea of OEPH issued capital). Please refer to note 30, page 29. The E&P segment will be doing the heavy lifting for Oando plc into the future. It is the one to watch. Supply and trading will provide the astonomically high revenue figures but the margins have not been as imppressive.

Summarily, I believe it's all about the E&P business segment. Hence why the deal with NAOC is a game-changer for the company.

Mfunkynation:
Glory be to God...
For the first time I have read a good constructive English language from you!
keep it up

dapix:
ding

dapix:
ding

defebe:
Let us know if you want to take over the role of Karltom na

defebe:
Let us know if you want to take over the role of Karltom na

Omooloriredade:
My commentary on Oando results to date. Since it's Oando we are talking about here, permit me to start with disclaimers.

1. This is not a recommendation to buy, sell or hold Oando.
2. I don't have a finance or investment background and I'm not licensed to provide investment advice.
3. I could be sincerely wrong. I have been wrong many times before.
4. I'm not suggesting the market will rerate
Oando's SP off the back of results released to date.


Cons
1. Risk of Oando being delisted from the NGX. Process will be to acquire minority holdings before delisting. N7 as per SOA is highly unlikely if it were to eventuate.
2. Delay in finalisation of the Oando vs NAOC deal.
3. Negative equity / retained earnings.
4. Dividend income unlikely in the near future due to the above.
5. History of late filing of results / regulatory non-compliance.
6. Management have a reputation of being dodgy.
7. Oando carries sustantial debt and impairment in its books.
8. Production or operations interruptions due to militancy in the Niger-delta region.
9. If it remains listed, Oando needs to prove to the market that it has turned the corner and it's upwards and onwards from here. It remains to be seen.

Pros
1. Recent flurry of earnings release if sustained may signal a change for good.
2. Management has indicated a desire to release results as and when due according to latest media release.
3. A return to profitability in recent results (Audited FY'22 and unaudited FY'23).
4. The return to profitability is despite the reduction in the average realised prices of Oil, Gas and NGLs. Increased Oil production minimised the impact to revenue in the E&P segment.
5. Production can be cranked up to improve revenue and margins.
5. The E&P segment of the business is the "money spinner" - higher profit margins. The trading arm is the cash cow albeit with low margins. Please see note 3, page 23 of unaudited FY'23 results for details.
6. Management has indicated a desire to wind down trading in low margin refined crude products (PMS, diesel etc) hence the recent sell off of assets to NNPC and the noticeable decline in reported revenues in that business segment.
7. Back to the E&P, any increase in production will lead to remarkable profitability of the group. This may be reflected in the FY'24 results if Oando is able to secure Ministerial consent and regulatory approval required to close the NAOC deal. It will double production numbers instantly. Please refer note 17, page 27 & 28 of unaudited FY'23 results for details.
8. Management also noted the marginal production increase in was a result of repairs of shut in wells offset by persistent sabotage activities. If these wells come back online this FY, there may be a sustantial increase in production numbers leading to improved margins and sustained profitability.


Peer Comparison
1. Seplat is heads and shoulders above Oando in terms of quality of management, filing of results, regulatory compliance, business & organisational structure and operations.
2. Seplat's PE is 36.77 based on the FY'23 EPS of 92.75 and SP of N3,410.
3. Simplistic comparison only - if we assume this is a fair industry PE and forget Oando's woes for a second, the market could potentially value Oando at 36.77 x N6 = N220.62. However, in my opinion, this is practically impossible at this stage with a history of delayed and negative results, no dividends or returns to shareholders in years, negative equity etc.

Again, I'll make a reference to the E&P business segment of Oando Plc. The company (Oando) through it wholly owned subsidiary (Calabar Power Ltd) purchased the entire 2.22% holding of M1 Petroleum ltd in OEPH at a consideration of $1.70 per share (yes, the E&P is that valuable). Actually, I'm unable to confirm the MCAP based on this price (no idea of OEPH issued capital). Please refer to note 30, page 29. The E&P segment will be doing the heavy lifting for Oando plc into the future. It is the one to watch. Supply and trading will provide the astonomically high revenue figures but the margins have not been as imppressive.

Summarily, I believe it's all about the E&P business segment. Hence why the deal with NAOC is a game-changer for the company.

KayOn1:
Perfectly makes sense. With you putting the whole picture in perspective will make newbies understand this is not a get rich quick lotto. People do get burnt seriously in the financial market and many have been scarred for life.

My Respect. 🙏

KarlTom:
21+ years is not really a get rich quick...

KayOn1:
From 5K

W0t0w0toman:
When you start with 50k, it give you the drive and motivation to hustle harder and invest more, as well as reinvest your returns, that is how I did it.

olaremint:
OANDO OANDO OANDO, what is the big deal about this company ? I don’t think any diligent investor should bother about that company

KarlTom:
Actually 5k was the initial seed...

He used four key words/phrases: drive and motivation, hustle harder, invest more, reinvest returns

Raider76:
I am not a diligent investor. Just a trader. And I have so far made 60% return trading Oando shares so far this year.

gare2510:
Bid for Oando drops from 62 million to 33 million; what happened?

gare2510:
Bid for Oando drops from 62 million to 33 million; what happened?

Mpeace:
The Central Bank of Nigeria has revoked the banking licence of Heritage Bank Plc, effective immediately.

This decision was made due to the bank’s failure to improve its financial performance, posing a threat to financial stability.

The apex bank’s Acting Director of Corporate Communication Department, Sidi Ali, disclosed this in a statement on Monday.

According to the CBN, the bank’s management has been unable to stem the decline despite various supervisory steps taken by the regulator. With no reasonable prospects of recovery, the CBN has taken this action to protect the financial system and maintain public confidence.

“The Nigerian financial system remains on a solid footing.

“We are committed to ensuring the safety and soundness of our financial system, and this action reflects that commitment,” the statement added.