Oando Plc has unveiled its unaudited results for the fiscal year ending December 31, 2024. The company experienced a 45% increase in revenue, which soared to ₦4.1 trillion, compared to ₦2.9 trillion in 2023.
Profit After Tax (PAT) also rose by 9%, reaching ₦65.5 billion for FY 2024, up from ₦60.3 billion the previous year.
The increase in revenue was driven by higher volumes of crude oil lifted, elevated gas prices, and favorable exchange rate translations. However, this growth was somewhat offset by a decline in trading volumes, lower natural gas and NGL volumes, and reduced sale prices for crude oil and NGL.
Oando’s operating profit for the period grew by 1% compared to FY 2023, mainly due to the revenue boost. However, this was tempered by a rise in administrative expenses, primarily caused by foreign exchange losses from the revaluation of payables and borrowings, as well as costs linked to the acquisition of NAOC.
The growth in operating profit primarily drove the 9% increase in PAT, though higher net finance costs had a counteracting effect.
“2024 was a year of transformation for Oando, the key highlight being our successful acquisition and subsequent integration of NAOC Ltd, which significantly enhanced our production capacity, attaining peak production of 103,206 boepd and net entitlements of 45,000 boepd,” said Wale Tinubu, the Group Chief Executive of Oando Plc.
Despite a challenging operational environment, the company successfully achieved a 45% increase in revenue, totalling ₦4.1 trillion. This performance, alongside a 9% rise in PAT, reflects the strength of Oando’s business model, which endured despite the costs incurred in integrating NAOC.
Looking ahead to 2025, Oando plans to focus on optimizing costs, enhancing operational efficiency, and improving productivity across its operations. This will be achieved by streamlining processes, bolstering procurement practices, and incorporating technology. The company also aims to increase production through rig-less and workover initiatives, as well as an aggressive drilling program across three rig lines.
Oando is also addressing security concerns in its operational areas. **“Simultaneously, in collaboration with other stakeholders, we are proactively tackling above-ground security challenges by implementing a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives to curb the perennial, unnecessary, and unjustifiable theft of oil to ensure the long-term integrity of our vast network,”** Wale Tinubu added.
The company has emphasized the importance of support from host communities and partners to achieve its goals for 2025. “Through extensive engagement, we will foster a collaborative ecosystem that not only secures our operations but also drives shared prosperity and sustainable development for all,” he said.
In terms of production, Oando achieved an average of 23,911 boe/day during 2024, up from 23,258 boe/day in 2023. This increase was partly due to additional volumes from acquiring a 20% extra stake in the NAOC JV during the fourth quarter, although shut-in wells somewhat impacted it for repairs due to sabotage activities.
For the year ending December 31, 2024, Oando spent $18.1 million on capital expenditures related to oil and gas asset development and exploration activities, a decrease from the $52.3 million spent in the same period in 2023.
