Nov. 19 (Bloomberg) -- Oando Plc advanced in its longest stretch of advances in more than 20 months on bets the Nigerian energy producer will meet its deadline for the acquisition of ConocoPhillips’ assets in the African nation.
The stock climbed for the sixth day, gaining 10 percent to 14.12 naira at the close in Lagos, the commercial capital, the longest winning streak since March 2012. More than 29 million shares were traded, or about five times the three-month average, data compiled by Bloomberg show.
Oando Energy Resources Inc., a unit of Oando, said in December it agreed to buy Houston-based ConocoPhillips’ Nigeria assets for $1.79 billion as it seeks to become the nation’s top oil explorer and producer. Oando received commitments of about $815 million in credit facilities to help fund the acquisition, after the completion date was pushed to Nov. 30 from Sept. 19, the Lagos-based company said last month.
The “recent price movement, despite weak results, suggests the market is sanguine on a possible closure of the deal,” Oyekunle Omotayo-Benson, energy equity analyst at Asset & Resource Management Co. in Lagos, said by phone.
Oando’s net income for the nine months through September declined 34 percent to 6.1 billion naira ($38.4 million), it said this month. Revenue in the period fell to 386.3 billion naira from 487.8 billion naira.
The company’s shares have gained 14 percent this year, compared with a 36 percent advance in the Nigerian Stock Exchange All-Share Index.
To contact the reporter on this story: Emele Onu in Lagos at firstname.lastname@example.org
To contact the editor responsible for this story: Vernon Wessels at email@example.com