Oando Grows Revenue To 51%, N62.6bn Profit In 6 Months

Oando PLC, Africa’s leading energy solutions company listed on both the Nigerian Stock Exchange (NGX) and Johannesburg Stock Exchange (JSE) has announced a 51 per cent growth in revenue of N2 trillion compared to N1.3 trillion in the first half of 2023 in its published in its Unaudited 2024 Results.

This announcement comes as the company resumes trading on the NGX, along with the publication of its 2023 FYE audited reports.

Following the performance set in its audited financial year ended 2023 results, Oando continues to show impressive results across its key financial metrics. In addition to the significant growth in revenue, the company posted a profit-after-tax of N62.6 billion.

Speaking on the H1 2024 performance, group chief executive, Oando PLC, Wale Tinubu mentioned “In the first half of 2024, we delivered a Profit After Tax of N62.6 billion, despite persistent challenges occasioned by sabotage and theft across our assets in the Niger Delta, which led to frequent shut-ins and impacted production. Since assuming operatorship, we have implemented a series of production-enhancing initiatives, which are already yielding results, as demonstrated by a 36 per cent increase in output within the first 30 days following the acquisition. As we navigate a dynamic market environment, we are confident in our trajectory toward sustained production growth, positioning us to deliver long-term, sustainable value for all stakeholders”.

Oando’s N2 trillion revenue in comparison with other industry contemporaries such as Seplat, who recently declared a N575.1 billion revenue in H1 2024, reinforces the company’s resilience in spite of continued security challenges faced by all operators in the Niger Delta region. The company experienced a decrease in its upstream production due to sabotage activities and a shut in of wells for the necessary repairs.

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Undeterred by this, Oando averaged 5,790 bbls/day of Crude Oil and 18,286 boe/day of Natural Gas. Along with its performance with NGLs (natural gas liquids), the company averaged a consolidated production capacity of 24,389 boe/day in H1 2024.

Oando sets its sights on the future with its recent status as an operator following its acquisition of Nigerian Agip Oil Company (NAOC) in August for $783 million.

Following this landmark purchase, the company has since established a production-war room to expedite production ramp-up and address operational inefficiencies. This initiative is part of a broader integration and efficiency enhancement process aimed at seamlessly integrating NAOC’s assets into Oando’s existing business portfolio and aligning operational standards.

As mentioned by the group chief executive in his comments, the company has already begun to witness results of its efforts as evident in the 36 per cent increase in output within the first 30 days following the acquisition and control of the production assets.

The future appears promising for the indigenous energy company, with global oil prices projected to average $89/b for the remainder of 2024 and $91/b in Q1 2025, according to the US Energy Information Administration (EIA). The EIA also predicts global consumption to reach around 102.91 million bpd in 2024, driven by increased global demand for oil and liquid fuels.

Oando, through its focus on operational efficiency and production optimisation, is well-positioned to capitalise on these favourable market conditions and deliver long-term sustainable value to its stakeholders.