Oando Plc Records N74.7 Billion Profit in 2023, Bolstered by Strategic Ventures
Oando PLC, a frontrunner in Nigeria’s indigenous energy sector, announced a robust N74.7 billion Profit-After-Tax (PAT) in its unaudited financial report for the fiscal year ending in 2023. This impressive figure signals a notable turnaround from the preceding year when the company experienced a loss after tax.
In a pivotal move towards sustainable energy solutions, Oando’s clean energy division, Oando Clean Energy Limited (OCEL), launched electric mass transit buses in collaboration with the Lagos State government, underlining a promising trajectory for the company.
The release of the unaudited FYE2023 results signifies Oando’s adherence to regulatory obligations for listed entities, positioning it to align with industry standards by year-end. This commitment to transparency is anticipated to bolster confidence among shareholders and investors regarding the company’s present performance and future prospects.
Despite confronting challenges within the oil and gas sector stemming from militancy and sabotage, Oando achieved a remarkable 71 percent increase in turnover, reaching N3.4 trillion as opposed to N1.9 trillion in FYE 2022.
Wale Tinubu, Group Chief Executive of Oando PLC, reflected on the outcomes, stating, “Despite persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, we achieved a profit after tax of N74.7 billion in 2023. This success is largely attributed to increased trading volumes owing to our strategic global partnerships and net foreign exchange gains on the group’s foreign currency-denominated assets.”
He further remarked, “Our milestone signing of the Sale and Purchase Agreement with Eni for the acquisition of 100 percent of the shares of NAOC Ltd. marked a pivotal moment for our organization. This acquisition is poised to unlock substantial synergies in the near future. Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders.”
In terms of production metrics, Oando recorded 6,024 barrels per day (bbls/day) of oil, up from 4,939 bbls/day in 2022, alongside natural gas production of 14,572 boe/day, compared to 15,292 boe/day in 2022, and Natural Gas Liquid (NGL) production of 241 bbls/MMscf/day, down from 472 bbls/MMscf/day in 2022.
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Trading operations saw a 50 percent surge in traded crude oil volumes, reaching 32.8 million bbls in 2023, compared to 21.8 million bbls in 2022. However, there was a 15 percent decline in traded refined petroleum products, with 1,645,535 MT in 2023 compared to 1,937,833 MT in 2022.
Looking ahead, Tinubu articulated, “Having navigated through the challenges of recent years, our latest results lay the groundwork for us to consolidate and advance. With our planned acquisition of NAOC, we are poised to assume full operatorship and enhance outputs, value, and efficiencies. Moreover, our leadership in clean energy broadens our footprint as an integrated energy company, grounded in today’s realities and the potentials of the future.”
