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Oando Plc has announced a strong financial performance for last year’s financial result with a 45 per cent growth in revenue to N4.1 trillion.
The company’s 2024 performance showcases a consistent upward trajectory following its announcement of N65.5 billion in profit after tax.
Speaking on the results, Group Chief Executive, Oando, Wale Tinubu, said: “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 operated production of 103,206boepd and net entitlements of 45,000 boepd.
“Despite a challenging operating environment, we achieved a 45 per cent increase in revenue to N4.1 trillion, reflecting the strength of our business model, and a nine per cent rise in profit after tax to N65.5 billion, notwithstanding the costs associated with the onboarding of NAOC.”
Oando’s production for the twelve months ended December 31, 2024, averaged 23,911 barrels of oil equivalent per day (boe/d), an increase from the 23,258 boe/d achieved in 2023. This growth was primarily driven by acquiring an additional 20% stake in the NAOC JV in Q4, partially offset by production disruptions due to shut-in wells resulting from sabotage activities.
Also, the group incurred $18.1 million on capital expenditures related to developing oil and gas assets and exploration and evaluation activities, compared to $52.3 million in the twelve months to December 31, 2023.
Looking ahead to 2025, Tinubu stated: “In 2025, our priority shall be to drive cost optimization, operational efficiency, streamline processes, enhance procurement, and leverage technology to improve productivity across our operations. In parallel, we will intensify efforts to boost production through the dual approach of rig-less and work over initiatives while executing an aggressive drilling program across three rig lines.
Catalysts
- With the current on ongoing growth in the Nigerian Oil and Gas sector, I think companies like Oando which be great than N100
- Using peer Analysis, Since other companies like seplat are above N200, then Oando is still under performing
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