Oando Plc reported a 45 per cent increase in revenue to N4.1tn for the financial year ended December 31, 2024, compared to N2.9 trillion recorded in the previous year.
The company’s unaudited financial statements, released on Friday on the Nigeria Exchange Limited, also showed a nine per cent growth in profit after tax, rising to N65.5bn from N60.3bn in 2023.
According to Oando, the revenue growth was driven by higher crude oil volumes, increased gas prices, and the impact of foreign exchange gains, despite lower trading volumes and a decline in realized crude oil prices.
The Group Chief Executive of Oando Plc, Wale Tinubu, attributed the performance to the company’s strategic expansion, particularly its acquisition of a 20 per cent additional stake in NAOC Limited, which significantly boosted production capacity.
“Our successful integration of NAOC Ltd enabled us to achieve peak operated production of 103,206 barrels of oil equivalent per day (boepd) and net entitlements of 45,000 boepd,” Tinubu stated.
The company recorded a 46 per cent increase in exit production, rising to 30,712 boepd in 2024 from 21,036 boepd in 2023, while average production grew by three per cent to 23,911 boepd from 23,258 boepd in the previous year.
A breakdown of Oando’s production data showed that crude oil output increased by 27 per cent to 7,864 barrels per day from 6,211 bpd in 2023, while natural gas production declined by six per cent to 15,801 boepd from 16,808 boepd.
Despite the revenue growth, the company’s operating profit only inched up by 1 per cent to N220.2bn, impacted by higher administrative expenses, foreign exchange losses from the revaluation of payables and borrowings, and costs associated with the NAOC acquisition.
Oando’s trading division, however, recorded a decline in traded volumes, with crude oil sales dropping by 37 per cent to 20.7 million barrels, while refined product sales fell by 64 per cent to 599,692 metric tonnes.
Looking ahead, Tinubu said the company would focus on cost optimization, operational efficiency, and an aggressive drilling program across three rig lines to boost production in 2025.
“We are also implementing a revamped security framework with advanced surveillance technology and intelligence-driven initiatives to curb oil theft and ensure the integrity of our operations,” he added.
Oando disclosed that it spent $18.1m on capital expenditures related to oil and gas development and exploration activities during the year, compared to $52.3m in 2023.
The company also stated that it sold 20.7 million barrels of crude oil under various contracts with the Nigerian National Petroleum Company Limited in 2024.
Oando Plc says it has increased its crude oil production output by almost 50 per cent in three months.
