LAGOS, Nigeria — Oando PLC, Africa’s leading integrated energy solutions provider listed on both the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), has announced a robust financial performance for the Full Year (FY) 2024, with revenue surging 45% to N4.1 trillion compared to N2.9 trillion in FY 2023.
The company also reported a profit after tax of N65.5 billion, marking a 9% increase from the previous year, despite operational challenges and costs associated with its acquisition of NAOC Ltd.
Group Chief Executive, Wale Tinubu CON, attributed the strong performance to strategic initiatives, including the successful integration of NAOC Ltd, which bolstered Oando’s production capacity.
“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 barrels of oil equivalent per day (boepd) and net entitlements of 45,000 boepd,” Tinubu said.
He added, “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.”
Production Growth and Operational Challenges
Oando’s production for the twelve months ended December 31, 2024, averaged 23,911 boe/d, up from 23,258 boe/d in 2023. This growth was driven by the acquisition of an additional 20% stake in the NAOC joint venture in Q4, though partially offset by production disruptions caused by sabotage activities.
The Group’s capital expenditures for the year totaled 18.1million,a significant reduction from 52.3 million in 2023, reflecting a strategic focus on cost optimization.
Strategic Priorities for 2025
Looking ahead, Tinubu outlined Oando’s priorities for 2025, emphasizing cost optimization, operational efficiency, and enhanced security measures to address oil theft and sabotage.
“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,” Tinubu said. “We will intensify efforts to boost production through rig-less and workover initiatives while executing an aggressive drilling program across three rig lines.”
He also highlighted the company’s revamped security framework, which integrates advanced surveillance technology and intelligence-driven initiatives to safeguard operations.
“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,” Tinubu added.
Optimistic Oil Demand Forecast
Oando’s outlook for 2025 is bolstered by optimistic global oil demand predictions. The U.S. Energy Information Administration (EIA) forecasts global oil demand to grow by 1.3 million barrels per day (bpd) in 2025, up from 0.9 million bpd in 2024. This growth surpasses the pre-pandemic 10-year average, signaling a positive trajectory for the global oil market.
Positioning for the Future
With its strong FY 2024 performance, Oando is well-positioned to achieve its strategic vision of becoming Africa’s first international oil company (IOC). The company remains committed to leveraging its operational capabilities and strategic partnerships to deliver value to stakeholders and drive sustainable growth across the continent.