Shares of  leading integrated energy group Oando slumped to an 8-year low on Wednesday, after full year net profits at the energy firm declined 76 percent to N3.44 billion naira ($21.61 million) in 2011, knocking its shares down the maximum allowed five percent, a business daily has reported.

Oando shares fell to N14.99 ($0.09), a level last seen in 2004 and 28 percent down on its value at the start of the year.

The Nigerian oil exploration and trading firm, which has a secondary listing in Johannesburg, said the company had experienced a “significant reduction” in gross margins on imported products during the year, due to product gluts and port delays.

The company also cited administrative and selling expenses, including foreign exchange losses as major contributors to its dented profit margins.

Oando expected a drop in profit for 2011 after a N9.62 billion naira ($60.4 million) write-off, Chief Executive Officer Wale Tinubu said on April 10, citing “impairment of assets,” costs of acquisitions and other charges.

According to David Adonri, CEO of Lambeth Trust, the fall in profit “is a sign that the business is not being properly managed.”

Adonri also predicted the stock will fall further because investors’ confidence in the company is very low. He however, declined to mention how far it would fall.