Shareholders of Oando Plc may get more value for their money in the 2025 financial year as the integrated energy company intends to execute some strategies, including an aggressive drilling program, designed to yield positive results.
The chief executive of the firm, Mr Wale Tinubu, while commenting on the financial performance of the organisation for the 2024 fiscal year, said “2025 will be our year of execution.”
Last year, Oando impressed investors with a 44 per cent rise in revenue to N4.1 trillion from the N2.9 trillion recorded in the preceding year, with ...-tax profit up by 267 per cent to N220 billion from N60 billion in 2023.
In the upstream segment of the business, Oando’s production went up by 3 per cent to 23,727 barrels of oil equivalent per day, comprising crude oil production, which rose by 27 per cent to 7,558 barrels per day, as NGL production and gas decreased respectively by 35 per cent to 156 bpd, and 5 per cent to 16,013 boepd.
As for the downstream, Oando’s trading subsidiary sold 20.7 million barrels of crude oil in 2024, 37 per cent lower than what was recorded a year earlier. This was attributed to structural changes in the Nigerian oil market.
Additionally, refined product volumes declined by 64 per cent to just over 599 kMT, due to weakened domestic demand, driven by the challenging macroeconomic in-country.
“The year 2024 was a defining year for Oando, with the successful acquisition and integration of NAOC marking the culmination of a decade-long strategic growth journey which has significantly deepened our upstream portfolio, resulting in our assumption of operatorship of the OML 60–63 series and the doubling of our working interest in the assets from 20 per cent to 40 per cent, as well as our 2P reserves from 500 million barrels of oil equivalent to 1 billion barrels,” Mr Tinubu stated.
He said this year, “Our key priorities shall include unlocking synergies from the acquisition, addressing above-ground security risks through the implementation of a revamped security framework aimed at curbing the persistent theft of oil, cost optimization, balance sheet restructuring, enhancing operational efficiency, and leveraging technology to improve productivity across our operations.”
“In our bid to ramp up production towards achieving our target of 100,000 bopd and 1.5 tcf of gas by 2029, we shall pursue a dual-track approach of rig-less interventions and well workovers, complemented by an aggressive drilling program.
“We are excited by the opportunities that lie ahead and remain committed to delivering enhanced shareholder returns, shared prosperity and maintaining our position as a leading player in Africa’s evolving energy landscape,” he added.