Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced its unaudited results for the twelve months period ended December 31, 2024.
HIGHLIGHTS
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45% revenue increase: N4.1trillion (FY 2024) vs N2.9 trillion (FY 2023)
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9% growth in Profit-After-Tax of N65.5 billion (FY 2024) compared to a Profit-After-Tax of N60.3 billion (FY 2023).
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46% increase in exit production: 30,712 boepd (2024) vs 21,036 boepd (FY 2023)
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3% increase in average production: 23,911 boepd (FY 2024) vs 23,258 boepd (FY 2023)
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27% increase in average oil production: 7,864bbls/day (FY 2024) vs 6,211bbls/day (FY 2023)
Commenting on the results Wale Tinubu CON, Group Chief Executive, Oando PLC 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 103,206 boepd and net entitlements of 45,000 boepd.
Despite a challenging operating environment, we achieved a 45% increase in revenue to ₦4.1 trillion, reflecting the strength of our business model, and a 9% rise in profit after tax to ₦65.5 billion, notwithstanding the costs associated with the onboarding of NAOC.
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 workover initiatives while executing an aggressive drilling program across three rig lines.
Simultaneously, in collaboration with other stakeholders, we are proactively tackling above-ground security challenges by implementing a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives to curb the perennial, unnecessary, and unjustifiable theft of oil to ensure the long-term integrity of our vast network.
As we look ahead to an exciting and successful 2025, we recognize that achieving our goals requires the unwavering support of our host communities and partners. Through extensive engagement, we will foster a collaborative ecosystem that not only secures our operations but also drives shared prosperity and sustainable development for all.”
Upstream:
Production for the twelve (12) months ended 31 December 2024:
During the twelve (12) months ended December 31, 2024, average production was 23,911 boe/day, compared to 23,258 boe/day in 2023. In 2024, production consisted of 7,864 bbls/day of crude oil, 246 bbl/day of NGLs and 15,801 boe/day of natural gas. Production increase was a result of additional volumes from acquisition of 20% additional stake in the NAOC JV in Q4 offset by the impact of shut in wells for repairs from sabotage activities.
During the twelve (12) months to December 31, 2024, the Group incurred $18.1 million on capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $52.3 million in the twelve months to December 31, 2023.
Trading:
Traded volumes for the twelve months ended 31 December 2024:
In FY 2024, Oando Trading sold approximately 20.7 million barrels of crude oil under various contracts with NNPC Limited.
FINANCE REVIEW
Revenue
Revenue for the period increased by 45%, driven by higher crude oil volumes lifted, and higher gas prices as well as the positive impact of exchange rate translations, offset by lower trading volumes, reduced natural gas and NGL volumes, and lower realized sale prices for crude oil and NGL.
Operating Profit
Operating Profit for the period increased by 1% compared to FY2023, primarily driven by revenue growth, offset by an increase in administrative expenses mainly due to foreign exchange losses from the revaluation of payables and borrowings and costs associated with the NAOC acquisition.
Profit-After-Tax (“PAT”)
PAT for the period was N65.5 billion, an increase of 9% compared to FY2023, driven by the increase in operating profit, offset by an increase in net finance costs.
Ends.
