Oando 9M’24 profit declines by 31% on FX losses

Oando Plc has announced its unaudited results for the nine-month (9M) period ended September 30, 2024. It reported 36 percent revenue increase to N3.2 trillion versus N2.3 trillion in same period of year 2023, according to the result at the NGX.

Profit After Tax (PAT) of N76.3 billion versus N110.2 billion in September 2023. Profit After-Tax for the period declined by 31percent, driven by foreign exchange losses and net finance costs.

Commenting on the results Wale Tinubu, Group Chief Executive, Oando Plc said: “Our performance for the nine months ended September 30, 2024, reflects our resilience and unwavering focus on delivering value amidst a challenging operating environment. We achieved a 36percent increase in revenue to N3.2 trillion and a Profit After Tax of N76.3 billion, despite ongoing pipeline vandalism, sabotage, theft in the Niger Delta, and foreign exchange volatility.

Since the acquisition of NAOC, we have increased production by 40 percent, growing from 22,000 boepd pre-acquisition to 30,675 boepd currently. This progress has been driven by the deployment of quick-win strategies that have enhanced operational efficiencies and demonstrated the transformative potential of the acquisition.

Read also: Oando eyes 100,000 bpd post-acquisition of onshore assets- Irune

The integration process is advancing smoothly, and our immediate focus remains on executing strategic initiatives to maximize the value of our expanded portfolio. With this stronger foundation and a clear roadmap for growth, we are confident in our ability to deliver long-term, sustainable value to all stakeholders.

During the nine months ended September 30, 2024, average production was 20,560 boe/day, compared to 21,529 boe/day in 2023. In 2024, production consisted of 6,525 bbls/day of crude oil, 254 bbl/day of NGLs and 13,782 boe/day of natural gas.

Production decrease was a result of increased shut-in wells for repairs from sabotage and theft-related activities. During the nine months to September 30, 2024, the Group incurred $12.7 million on capital expenditure related to the development of oil and gas assets and exploration and evaluation activities, compared to $47.4 million in the nine months to September 30, 2023.

Revenue for the period increased by 36percent, positively impacted by exchange rate translations and higher crude oil volumes lifted, offset by lower trading volumes, reduced natural gas and NGL volumes, and lower realised sale prices for natural gas and NGL. Operating Profit for the period declined by 23percent, primarily driven by an increase in administrative expenses mainly due to foreign exchange losses from the revaluation of payables and borrowings.