Oando Plc, a prominent oil and gas company, announced that it made significantly more money in the financial year that ended on December 31, 2024. Specifically, their revenue — the total amount of money they brought in from their business activities — grew by an impressive 45% to reach 4.1 trillion Naira, up from 2.9 trillion Naira the previous year.
The company shared these results in financial reports they published on Friday on the Nigeria Exchange Limited, which is a stock market where many Nigerian companies are listed. They also reported a 9% increase in their profit after taxes, which climbed to 65.5 billion Naira from 60.3 billion Naira in 2023.
Oando explained that the surge in revenue was primarily due to an increase in the volume of crude oil they extracted, higher prices for gas, and gains they made from foreign currency exchanges. However, it’s worth noting that they faced challenges with lower trading volumes and a drop in the prices they received for crude oil.
Wale Tinubu, the Group Chief Executive of Oando Plc, attributed this strong financial performance to the company’s strategic decisions, particularly their acquisition of an extra 20% stake in NAOC Limited, a subsidiary that greatly enhanced their ability to produce oil.
Tinubu mentioned that, thanks to the successful incorporation of NAOC, Oando achieved a high production rate of 103,206 barrels of oil equivalent per day, and they secured net entitlements of 45,000 barrels of oil equivalent per day.
Looking more closely at their production numbers, Oando’s overall output saw a 46% increase, reaching 30,712 barrels of oil equivalent per day in 2024, up from 21,036 the previous year. Their average production rose by 3% as well, increasing from 23,258 to 23,911 barrels per day. When it comes to specific products, the production of crude oil grew by 27%, going from 6,211 barrels per day to 7,864. However, they did see a decline in natural gas production by 6%, dropping from 16,808 barrels per day to 15,801.
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Despite the overall rise in revenue, Oando’s operating profit saw only a slight increase of 1%, reaching 220.2 billion Naira. This modest growth was affected by rising administrative costs, losses due to foreign currency fluctuations, and expenses related to their acquisition of NAOC.
Unfortunately, Oando’s trading division reported a decline in the volume of oil sold. Crude oil sales fell by 37%, totaling 20.7 million barrels, while sales of refined products dropped even more steeply by 64%, down to 599,692 metric tons.
Looking forward, Tinubu shared that the company aims to improve efficiency and reduce costs, and they plan to focus on an ambitious drilling campaign across three drilling rigs to ramp up production in 2025. He also added that Oando is implementing a new security strategy using advanced surveillance technology to protect their operations, particularly against oil theft, which has been a significant issue in the industry.
Lastly, Oando reported that they invested 18.1 million dollars in capital expenditures for their oil and gas development and exploration efforts this year, which is down from 52.3 million dollars in 2023. In 2024, they also sold 20.7 million barrels of crude oil to the Nigerian National Petroleum Company Limited under various agreements. According to The PUNCH, Oando has raised its crude oil production by almost 50% over three months.
