Oando Rises to 11-Month High on Dividend Bets: Lagos Mover
Oando Plc (OANDO), a Nigerian energy producer, climbed to its highest level in 11 months as investors bet the company will pay a dividend for 2012, according to Lambeth Trust and Investment Co.
The shares advanced 8.8 percent to 19.80 naira by the 2:30 p.m. in Lagos, the commercial capital, the highest since April 3, according to data compiled by Bloomberg. More than 9 million shares were traded, almost double the three-month average.
“Investors are taking position on the stock in anticipation of a competitive dividend, with yield of up to 5 percent,” David Adonri, chief executive officer of Lagos-based Lambeth, said by phone today. “The result is expected within two weeks.”
Oando’s management gave an indication it would pay a dividend at a meeting last month with stockbrokers, Adonri said. No dividend was paid in 2011, he said.
Chief Executive Officer Wale Tinubu said Oando’s Nigerian oil output will rise to 100,000 barrels a day by 2015 from the current 10,000 barrels after taking over the assets of Houston- based ConocoPhillips. (COP) Its 54.6 billion-naira ($345 million) rights offer, which ended on Feb. 20, was held to partly fund the acquisition.
Oando’s profit for the nine months through September climbed to $59.7 million from $56.9 million a year earlier, it said in October. Revenue rose to $3.1 billion from $2.6 billion.
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