Oando PLC has reported a profit after tax (PAT) of N65.5 billion for the Full Year (FY) 2024, representing a 9 per cent increase from the previous year. The integrated energy company, listed on both the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), also recorded a 45 per cent revenue growth to N4.1 trillion, up from N2.9 trillion in FY 2023.
Oando attributed its strong financial performance to increased production capacity following its acquisition of Nigerian Agip Oil Company (NAOC) Ltd. In 2024. The company’s production averaged 23,911 barrels of oil equivalent per day (boe/d) over the year, slightly higher than the 23,258 boe/d recorded in 2023. However, production was partially affected by shut-in wells due to sabotage activities.
Group Chief Executive, Oando PLC, Wale Tinubu CON, highlighted the company’s operational achievements, stating, “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 103,206boepd and net entitlements of 45,000 boepd.
“Despite a challenging operating environment, we achieved a 45 per cent increase in revenue to N4.1 trillion, reflecting the strength of our business model, and a 9 per cent rise in PAT to N65.5 billion, notwithstanding the costs associated with the onboarding of NAOC.”
Oando’s capital expenditure for 2024 stood at $18.1 million, significantly lower than the $52.3 million spent in 2023. The company stated that these investments were directed toward the development of oil and gas assets, as well as exploration and evaluation activities.
Oando outlined its priorities for the current financial year, focusing on cost optimization, operational efficiency, and an aggressive drilling program. Tinubu noted, “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.”
He added that the company also plans to strengthen its security framework to curb oil theft and enhance the integrity of its operations. “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,” said Tinubu.
SOURCE: THE SUN
