According to Oando Plc, revenue for the fiscal year that concluded on December 31, 2024, increased by 45% to N4.1 trillion from N2.9 trillion the year before.
On Friday, the Nigeria Exchange Limited published the company’s unaudited financial accounts, which also revealed a 9% increase in profit after tax, from N60.3 billion in 2023 to N65.5 billion.
Despite lower trading volumes and a drop in realised crude oil prices, Oando claims that the impact of foreign exchange gains, higher petrol prices, and larger crude oil volumes were the main drivers of the revenue increases.
Wale Tinubu, Oando Plc’s Group Chief Executive, credited the success to the company’s strategic growth, especially the purchase of a 20% larger share in NAOC Limited, which greatly increased manufacturing capacity.
Tinubu claimed that he had achieved peak operating production of 103,206 barrels of oil equivalent per day (boepd) and net entitlements of 45,000 boepd through the seamless integration of NAOC Ltd.
Exit production increased by 46% for the company, from 21,036 boepd in 2023 to 30,712 boepd in 2024, while average production increased by 3% to 23,911 boepd from 23,258 boepd in 2023.
According to a breakdown of Oando’s production data, natural gas production decreased by 6% to 15,801 barrels per day from 16,808 barrels per day in 2023, while crude oil output rose by 27% to 7,864 barrels per day from 6,211 barrels per day in 2023.
Due to increased administrative costs, foreign exchange losses from the revaluation of payables and borrowings, and expenses related to the NAOC purchase, the company’s operating profit only increased by 1% to N220.2 billion despite the expansion in sales.
However, Oando’s trading segment saw a dip in traded quantities, with sales of refined products falling 64% to 599,692 metric tonnes and sales of crude oil falling 37% to 20.7 million barrels.
Looking ahead, Tinubu stated that to increase output in 2025, the business would prioritise cost reduction, operational effectiveness, and a vigorous drilling program across three rig lines.
To prevent oil theft and maintain the integrity of our operations, he continued, “We are also putting into practice a redesigned security framework with cutting-edge surveillance technology and intelligence-driven initiatives.”
Compared to $52.3 million in 2023, Oando revealed that it spent $18.1 million on capital expenditures for oil and gas development and exploration activities during the year.
In 2024, the company reported selling 20.7 million barrels of crude oil to the Nigerian National Petroleum Company Limited under a variety of contracts.
According to a report, Oando Plc claims that in just three months, its output of crude oil has surged by about 50%.
