₦airaland Forum

INVESTORS ABANDONING OKOMU RED OIL FOR OIL AND GAS STOCKS
Sellers are dumping OKOMU red oil stocks to capitalise on the ongoing rally in oil and gas stocks, thereby creating a potential buying opportunity for OKOMUOIL. The price is now nearing the demand zone, with a subtle support level ₦320 (circa).

PLAN YOUR TRADES AND TRADE YOUR PLANS

Follow the money...

BullBearMkt:
INVESTORS ABANDONING OKOMU RED OIL FOR OIL AND GAS STOCKS
Sellers are dumping OKOMU red oil stocks to capitalise on the ongoing rally in oil and gas stocks, thereby creating a potential buying opportunity for OKOMUOIL. The price is now nearing the demand zone, with a subtle support level ₦320 (circa).

PLAN YOUR TRADES AND TRADE YOUR PLANS

Food for thought:
Between the hastily formed 'Renaissance group' and the legendary Oando, which company is more qualified to manage the SPDC's assets?

https://www.reuters.com/markets/deals/nigeria-rejects-shells-13-billion-oil-asset-sale-thisday-reports-2024-10-16/

Watch out as things unfold!

KarlTom:
Follow the money...

...absolutely!

Streetinvestor2:
If for customer service I won't be using Morgan capital. Who ever is at the customer service is so incompetent. The only time you get reply to mail thr is if you copy one madam thr yemisi.If you only send mail to the official handle as per mail they won't ever reply.Then they equally respond to individual call to that firm if you have anyone number thr.The official lines are kept permanently busy so don't even bother calling it

You are right on their terrible customer care service. I am even planning to sell all my holdings and move to a better customer centric firm. The last time I had to go to their office to complain when it got so bad. Abeg I no get that kind energy again on top my money.

[quote author=BullBearMkt post=132462101]INVESTORS ABANDONING OKOMU RED OIL FOR OIL AND GAS STOCKS
Sellers are dumping OKOMU red oil stocks to capitalise on the ongoing rally in oil and gas stocks, thereby creating a potential buying opportunity for OKOMUOIL. The price is now nearing the demand zone, with a subtle support level ₦320 (circa).

PLAN YOUR TRADES AND TRADE YOUR PLANS
[/quote]It’s still expensive. Value zone is N265 for me…

Coolcash1:
It’s still expensive. Value zone is N265 for me…

...already within the demand zone

pluto09:
I think something is not right with that q2 in my opinion.
The profit is only good for the company but very poor with the group .
Since its the group that is listed,the results might not be good as some people thought.

Err!!! Not quite!

The company is C & I Leasing Nigeria being the flagship company in the group. The group includes Lease Africa Ghana and others. The result is perfectly normal. Same way the results of banks in a holdco structure determines the overall outlook of the group's result. It just means the subsidiaries are not contributing as much to the top and bottom line YET.

ProphetUtuocha:
Food for thought:
Between the hastily formed 'Renaissance group' and the legendary Oando, which company is more qualified to manage the SPDC's assets?

https://www.reuters.com/markets/deals/nigeria-rejects-shells-13-billion-oil-asset-sale-thisday-reports-2024-10-16/

Watch out as things unfold!

Oh no!!!

I thought of this too and concluded it will bring bad press for O&O and BAT. Social media platforms, blogs, news outlets will be agog with corruption talk and how Renaissance group was shafted to favour O&O. They had better tread carefully.

Disclaimer - Most likely a baseless rumour or at least in my own case, a figment of my untamed imagination.

[quote author=Omooloriredade post=132463311]Oh no!!!

I thought of this too and concluded it will bring bad press for O&O and BAT.

That is ur worry!!! Who BAT send,. When they are tired if talking they will shut up.. that is his mindset

ProphetUtuocha:
Food for thought:
Between the hastily formed 'Renaissance group' and the legendary Oando, which company is more qualified to manage the SPDC's assets?

https://www.reuters.com/markets/deals/nigeria-rejects-shells-13-billion-oil-asset-sale-thisday-reports-2024-10-16/

Watch out as things unfold!

Sure, the legend has more experience. Better assets near the legend or of good value be given to them for operational efficiency. How can renaissance from no where just come collect everything. Why is food for thought. Make the legend ramp up net cash flow and profits from ops and come out with positive net assets in financial statements first joor. And top it up with resumption of dividends payment.

Streetinvestor2:
I don't know anything about oil production. I heard the minster saying he is expecting oando to do 100,000 by December.Are you saying it is not possible from those wells ever in the future. He said his target is for 2M barrel by yr end for the country.

If you believe the minister has a switch in his office that he can flip to achieve that, then yes!

designking:
Buy NASCON and Access Bank for a likely 50% ROI before January.

Hii.

Any reason why please?

Tpharell:
If you believe the minister has a switch in his office that he can flip to achieve that, then yes!

If Oando produces 100,000 b/d oil for JV it’s share of production is only 40%. I think the minister is talking JV and not Oando’s 40%

If Oando reports 25 b/d as its production. Then it means it’s doing about 63 b/ d for the country at the moment

Trojan8:
You expect me to believe ThisDay over FY'23 and FY'22 actually numbers. When I get home and I settle down, I'll drop a link to the breakdown from Oando.

You are obviously late to the party. There was a lot of back and forth on this matter and that fellow kept grandstanding on the obviously wrong figures quoted by the thisday article. Don’t waste your energy trying to resurrect a dead horse

Why shouldn't the RENAISSANCE be given that deal? These are private O&G businesses with good track records looking to take advantage of a good deal and expand from where they are. If not for the yeye bottlenecks wey Nigeria create upon herself this deal is supposed don be history by now.
Nah Wale know wetin him see for Tobago wey e dey pursue am, allow the ones at home take advantage of idle assets at home jare.

I won't say you should BUY/SELL Oando but thread with caution. At the end of the day everyone for NSEMPA dey chase their respective bags.

BabsO2:
If Oando produces 100,000 b/d oil for JV it’s share of production is only 40%. I think the minister is talking JV and not Oando’s 40%

This is a misinformation i have observed here. The quoted oando production figures are for the JV not just Oando’s stake. The Eni deal is not adding anything to the asset’s production, apart from the new operator taking some bold decisions and making strategic interventions to boost production.

Seplat is different in that there is about 30% additional production that the mobil acquisition will bring onboard, even without any strategic moves or interventions to boost production.

People need to understand this difference.

vefexam:
Hii.
Any reason why please?

These great stocks are grossly undervalued:

1.Access Bank
2. Dangote Sugar
3. Nascon

They have a very tight oscillating band and a strong potential for an upward movement in the near future.

The singular reason Dangote Sugar and NASCON have been down in price is primarily caused by the Naira-dollar instability.

[quote author=designking post=132464725]These great stocks are grossly undervalued:

1.Access Bank
2. Dangote Sugar
3. Nascon

They have a very tight oscillating band and a strong potential for an upward movement in the near future.

The singular reason Dangote Sugar and NASCON have been down in price is primarily caused by the Naira-dollar instability.

Surprised no one is talking about Fidelity bank. Those guys did magic in their half year result.

Let’s understand that the Agip acquisition does not bring in additional production figures, as Oando was already there in the asset before the acquisition and taking over the operatorship.

Oando, Agip & NNPCL were in the JV and reported production was for the asset comprising all 3 of them. So Oando taking up Agip’s 20% stake does not add anything to the JV production.

What is happening is that Oando the new operator is making strategic decisions and operational interventions to boost the production

PharmAlfred:
...

Fidelity Bank is also a great stock but it is too volatile. A stock with a wide oscillating band can easily wipe your portfolio if you enter at the high.

What you have today as Seplat’s production figure is that of the asset they currently operate in their JV with NNPC. Upon completion of mobil acquisition they will add about 30% additional production from mobil to their figures, so reported production figures for Seplat will increase after the acquisition is sealed

[quote author=PharmAlfred post=132464813][/quote]Before you conclude, kindly wait and see their Q3 result to make the decision.

https://doclib.ngxgroup.com/Financial_NewsDocs/42223_UNITED_BANK_FOR_AFRICA_PLC-_NOTICES_OF_BOARD_MEETING_(BM)_-_NOTICE_BOARD_MEETING_(BM)_SEPTEMBER_2024.pdf

Today is UBA's board meeting, so lets see if this will signal what the full picture will be like by year end!!

dapix:
Before you conclude, kindly wait and see their Q3 result to make the decision.

One can only stay positive. Banks are some of the best performers every year. Unfortunately, they don't enjoy great positive sentiment. If celebrated O&G companies perform half as they do, most of us we make big bags.

ProphetUtuocha:
Food for thought:
Between the hastily formed 'Renaissance group' and the legendary Oando, which company is more qualified to manage the SPDC's assets?

https://www.reuters.com/markets/deals/nigeria-rejects-shells-13-billion-oil-asset-sale-thisday-reports-2024-10-16/

Watch out as things unfold!

This scenario crossed my mind yesterday. There will be huge conspiracy theories if they try pulling that out.

Raider76:
This scenario crossed my mind yesterday. There will be huge conspiracy theories if they try pulling that out.

Take something, not everything for operational efficiency

Tpharell:
Let’s understand that the Agip acquisition does not bring in additional production figures, as Oando was already there in the asset before the acquisition and taking over the operatorship.

Oando, Agip & NNPCL were in the JV and reported production was for the asset comprising all 3 of them. So Oando taking up Agip’s 20% stake does not add anything to the JV production.

What is happening is that Oando the new operator is making strategic decisions and operational interventions to boost the production

I agree with the bolded but Agip's 20% share of JV production is now Oando's. One can expect that Q3 2024 (not FYE 2023) reported figures to double the 20kboepd reported as at FYE 2023?

I didn't quite get your explanation of the Seplat vs Oando acquisition impact on production numbers.

delvzy:
Why shouldn't the RENAISSANCE be given that deal? These are private O&G businesses with good track records looking to take advantage of a good deal and expand from where they are. If not for the yeye bottlenecks wey Nigeria create upon herself this deal is supposed don be history by now.
Nah Wale know wetin him see for Tobago wey e dey pursue am, allow the ones at home take advantage of idle assets at home jare.

I won't say you should BUY/SELL Oando but thread with caution. At the end of the day everyone for NSEMPA dey chase their respective bags.

Make WALE sha no carry shareholders go where they no know

Tpharell:
This is a misinformation i have observed here. The quoted oando production figures are for the JV not just Oando’s stake. The Eni deal is not adding anything to the asset’s production, apart from the new operator taking some bold decisions and making strategic interventions to boost production.

Seplat is different in that there is about 30% additional production that the mobil acquisition will bring onboard, even without any strategic moves or interventions to boost production.

People need to understand this difference.

This is not entirely correct.
In a JV arrangement, each partner's ''production'' refers to its share of the total crude oil produced by the JV. Oando and ENI used to have 20% each while NNPC still maintains 60%
Hence, as far as Oando is concerned, the additional 20% acquired via the ENI deal effectively translates to a 100% increase in its ''production'' in the JV.
For example, if Oando was previously entitled to 20,000 barrels from 100,000 barrels, it is now entitled to 40,000 barrels; so its ''production'' now ''increases'' from 20,000 to 40,000 barrels.
In the absence of any other factors to the contrary, this could ordinarily translate into a potential 100% increase in revenue.
Again, it should be noted that Oando acquired other assets from ENI that were not under the JV arrangement, which could also translate to more revenue or production, in addition to what comes from the 40% in the JV..

mikeapollo:
It is more like between Oando and SEPLAT. Currently, SEPLAT produces about 48,000 boepd while Oando produces about 40000 boepd excluding both Mobil/ENI acquisitions

You know Access has more gross earnings than Zenith and GTBank, right? All these una analysis just dey make am obvious wetin una dey do.

I think it's just better for me to stay away from responding to these Oando posts.

OandO

Let's wait for Q3 results.

I believe ALL these figures will be clearly stated...