Oando Shows Strength of Business Model With 45% Rise in FY24 Earnings

In the year under review, the company improved its gross earnings by about 45 per cent to N4.1 trillion from the N2.9 trillion recorded in the 2023 fiscal year.

Also, the company posted growth in its bottomline as the profit after tax went up by 9 per cent to N65.5 billion despite the costs associated with the onboarding of NAOC Limited.

Oando said last year, its crude oil production averaged 23,911 barrels of oil equivalent per day (boe/d) versus the 23,258 boe/d achieved in 2023.

It attributed this growth to the acquisition of an additional 20 per cent stake in the NAOC JV in the last quarter of 2024, which partially offset by production disruptions due to shut-in wells resulting from sabotage activities.

The energy firm disclosed that it incurred $18.1 million on capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $52.3 million in the preceding year.

In a statement, the organisation attributed its financial performance to the effectiveness of its business model, which focuses on cost optimization, operational efficiency, technology and better procurement policy

“The year 2024 was 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 profit after tax to N65.5 billion, notwithstanding the costs associated with the onboarding of NAOC,” the chief executive of Oando, Mr Wale Tinubu, said.