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One of Africa’s wealthiest billionaires Mike Adenuga has earned N3.1 billion ($7.6 million) in the past 53 days from his stake in Conoil Plc, as investors reacted to a 213-percent growth in the company’s profit in the first half of 2021.
As of Sept. 24, shares in the company were trading at a record three-year high of N24.55 ($0.0596) per share, as bargain hunters continue to acquire stakes in the oil company.
The recent surge in stock prices can be linked to investor expectations of an improved financial result at the end of 2021 as demand for petroleum products continues to strengthen and economic activities rev up for a strong recovery.
Investor expectations have been supported by the growth in profit that the indigenous oil company posted in the first half of its current fiscal year.
Compared to last year’s figures, Conoil’s mid-year profit grew by 213.7 percent from N498.1 million ($1.21 million) in the first half of 2020 to N1.06 billion ($2.58 million).
This bullish bias helped to push up the stock price, which this led to a gain of N3.1 billion ($7.6 million) for the African telecom tycoon in 53 days as Conoil shares on the Nigerian bourse surged from N18.50 ($0.0449) to N24.55 ($0.0596) between Aug. 2 and Sept. 24.
According to Billionaires.Africa, the market value of his ownership stake in the Nigeria-based oil company has increased from N9.55 billion ($23.2 million) on Aug. 2 to N12.7 billion ($30.8 million) on Sept. 24.
Earlier this year, Adenuga received $1.88 million (N774.4 million) in dividends from his stake in Conoil.
At the time of writing, his net worth is valued at $6.5 billion, up by $1 million today according to his Forbes real-time valuation.
