In 2025, Oando Plc, a major player in the Nigerian energy sector, is looking to intensify its cost optimisation strategy to deliver more value to its shareholders.
Oando, headed by Mr Wale Tinubu, believed to be a relative of President Bola Tinubu, is listed on the Nigerian Exchange (NGX) Limited and the Johannesburg Stock Exchange (JSE).
A few days ago, the company released its financial statements for 2024 and the performance for the year was impressive as the revenue improved by 45 per cent to N4.1 trillion from N2.9 trillion in FY 2023.
In the same vein, the net profit went up by 9 per cent to N65.5 billion, as the average crude oil production grew marginally to 23,911 barrels of oil equivalent per day (boe/d) from 23,258 boe/d in 2023.
Mr Tinubu expressed his joy over this development, saying the organisation plans to achieve more in the currency fiscal year.
“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% 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,” he said.
“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,” Mr Tinubu stated.