The shares dropped 5 percent, the daily limit, to 12.45 naira by 1:15 p.m. in Lagos, down for a third day. A close at that price would be the lowest since May 2003, extending the second-quarter retreat to 43 percent.
Bonny Light crude, Nigeria’s benchmark blend, fell 0.5 percent to $93.69 per barrel, the first time in five days, deepening the plunge in the second quarter to 25 percent, the biggest three-month drop since December 2008.
“Over 50 percent of Oando’s profit comes from crude oil production,” Pabina Yinkere, head of research at Lagos-based Vetiva Capital Management, said by phone today. “A decline in oil prices will lead to investors being cautious on the stock.”
Oando’s net income for the 12 months through December fell 74 percent to 3.67 billion naira ($23 million), the company said May 21. The company expected a drop in profit after a 9.62 billion naira write-off, Chief Executive Officer Wale Tinubu said April 10, citing “impairment of assets,” costs of acquisitions and other charges.
Aside from oil production, the company’s operations include refining and marketing of petroleum products.
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