Oando Plc, a Nigerian energy company, dropped for a fourth day, retreating to the lowest price in almost nine years, after full-year profit disappointed investors, according to Lambeth Trust and Investment Co.
The stock dropped 5 percent to 14.99 naira by the close in Lagos, the commercial capital, the lowest price since August 2003. The shares have retreated 13 percent in the past four sessions.
Net income for the 12 months through December declined 74 percent to 3.67 billion naira ($23 million), Oando said May 21, which was “below investors’ expectations,” David Adonri, chief executive officer of Lambeth Trust, said by phone today, also citing a lack of a dividend announcement.
“The stock will fall massively further because investors’ confidence in the company is very low now,” he added, without saying how far it could decline.
Oando expected a drop in profit for 2011 after a 9.62 billion naira write-off, Chief Executive Officer Wale Tinubu said on April 10, citing “impairment of assets,” costs of acquisitions and other charges.
The fall in profit “is a sign that the business is not being properly managed,” Adonri said.