Oando Reports 45% Revenue Growth, Hits N4.1 Trillion in FY 2024
Oando Achieves N4.1 Trillion Revenue and N65.5 Billion Profit-After-Tax in FY 2024
Oando PLC, Africa’s leading integrated energy company listed on both the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), has announced an impressive 45% growth in revenue, reaching N4.1 trillion for the full year (FY) 2024, up from N2.9 trillion in FY 2023. The company also reported a robust profit-after-tax of N65.5 billion, reflecting a 9% increase year-over-year.
Strategic Growth Through Acquisitions
Group Chief Executive, Wale Tinubu, CON, attributed the company’s strong performance to transformative strategies implemented in 2024. “The key highlight of the year was our successful acquisition and integration of NAOC Ltd, which significantly enhanced our production capacity. We achieved peak operated production of 103,206 barrels of oil equivalent per day (boepd) and net entitlements of 45,000 boepd,” Tinubu stated.
Despite navigating a challenging operating environment, Oando’s resilient business model propelled revenue growth and sustained profitability. The acquisition of an additional 20% stake in the NAOC Joint Venture (JV) in Q4 fueled production growth, averaging 23,911 boepd in 2024, up from 23,258 boepd in 2023. However, production was partially offset by disruptions caused by sabotage-related shut-ins.
Operational Investments and Future Outlook
Oando invested $18.1 million in capital expenditures for the development of oil and gas assets, alongside exploration and evaluation activities, a notable reduction from the $52.3 million spent in 2023. This strategic capital allocation aligns with the company’s cost optimization and efficiency goals.
Looking ahead to 2025, Tinubu outlined Oando’s priorities: “We aim to drive cost optimization, enhance operational efficiency, and leverage technology to boost productivity. Our focus will include aggressive drilling programs, rig-less initiatives, and workover operations to maximize production.”
The company is also intensifying efforts to address security challenges. In collaboration with stakeholders, Oando is implementing a revamped security framework incorporating advanced surveillance technologies and intelligence-driven strategies to combat oil theft and safeguard its infrastructure.
Positioned for a Strong 2025
Oando enters 2025 buoyed by positive global oil demand forecasts. The U.S. Energy Information Administration (EIA) projects global oil demand to grow by 1.3 million barrels per day (bpd) in 2025, surpassing the estimated 0.9 million bpd growth in 2024. This outlook provides a favorable backdrop for Oando’s strategic objectives.
“As we look forward to 2025, we are committed to fostering partnerships with host communities and stakeholders to drive sustainable development and shared prosperity,” Tinubu affirmed.
With its strong financial footing and clear strategic vision, Oando is well-positioned to build on its 2024 successes. The company remains committed to its goal of becoming Africa’s first international oil company (IOC), leveraging operational excellence and strategic partnerships to deliver sustained value to its stakeholders.
Source: Oando PLC
