Oando PAT Up 267% To N220bn

Oando Plc, has declared N4.1 trillion in revenue and profit after tax of N65.5 billion for the year ended December 31, 2024.

This impressive performance showcases the strength of Oando’s business model, despite a challenging operating environment.

The audited results revealed that Group revenue grew by 44 per cent year-on-year to N4.1 trillion as against N2.8 trillion, driven by a stronger performance in the Exploration & Production (E&P) segment and FX gains following the devaluation of the naira.

Gross profit rose by 84 per cent to N155.8 billion in 2024 compared to N85.0 billion in 2023; while operating profit rose to N569.7 billion from N218.3 billion in 2023, mainly due to a N1.1 trillion boost in other operating income.

Profit after tax stood at N220.1 billion in 2024, higher than N60.3 billion in 2023, reflecting stronger operating performance and one-off gains. Consequently, Earnings per share increased to N18, compared to N5 in the prior year.

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Speaking, group chief executive, Oando, Wale Tinubu said, “2024 was a defining year for Oando, with the successful acquisition and integration of NAOC marking the culmination of a decade-long strategic growth journey which has significantly deepened our upstream portfolio, resulting in our assumption of operatorship of the OML 60–63 series and the doubling of our working interest in the assets from 20 per cent to 40 per cent, as well as our 2P reserves from 500 million barrels of oil equivalent to 1 billion barrels.”

He stated that “despite a challenging macroeconomic and security environment, we delivered a 44 per cent revenue increase to N4.1 trillion and a 267 per cent rise in profit after tax to N220 billion, occasioned by the intrinsic value of the NAOC acquisition and underscoring the resilience of our business model.

“In parallel, we achieved innovative success in our global trading operations whilst expanding our clean energy initiatives.”

Looking ahead, Tinubu said “2025 will be our year of execution. Our key priorities shall include unlocking synergies from the acquisition, addressing above-ground security risks through the implementation of a revamped security framework aimed at curbing the persistent theft of oil, cost optimization, balance sheet restructuring, enhancing operational efficiency, and leveraging technology to improve productivity across our operations.

“In our bid to ramp up production towards achieving our target of 100,000bopd and 1.5 tcf of gas by 2029, we shall pursue a dual track approach of rig-less interventions and well workovers, complemented by an aggressive drilling program.

“We are excited by the opportunities that lie ahead and remain committed to delivering enhanced shareholder returns, shared prosperity and maintaining our position as a leading player in Africa’s evolving energy landscape.”