Oando Plc has released its unaudited results for the year ended December 31, 2024. The company recorded 45 percent revenue increase to N4.1trillion as against N2.9 trillion in FY 2023. It grew its Profit After Tax (PAT) by 9 percent to N65.5 billion (FY 2024) compared to a Profit-After-Tax of N60.3 billion (FY 2023).
Oando said revenue for the period increased by 45 percent, driven by higher crude oil volumes lifted, and higher gas prices as well as the positive impact of exchange rate translations, offset by lower trading volumes, reduced natural gas and NGL volumes, and lower realised sale prices for crude oil and NGL.
Also, Oando said its Operating Profit for the period which increased by 1 percent compared to FY2023, was primarily driven by revenue growth, offset by an increase in administrative expenses mainly due to foreign exchange losses from the revaluation of payables and borrowings and costs associated with the NAOC acquisition.
PAT for the period was N65.5 billion, an increase of 9 percent compared to FY2023, driven by the increase in operating profit, offset by an increase in net finance costs.
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“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
production of 103,206 boepd and net entitlements of 45,000 boepd.
“Despite a challenging operating environment, we achieved a 45 percent increase in revenue to N4.1trillion, reflecting the strength of our business model, and a 9 percent rise in profit after tax to N65.5 billion, notwithstanding the costs associated with the onboarding of NAOC,” said Wale Tinubu, Group Chief Executive, Oando Plc.
He further said: “In 2025, our priority shall be to drive cost optimisation, 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”.
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During the twelve (12) months ended December 31, 2024, average production was 23,911 boe/day, compared to 23,258 boe/day in 2023. In 2024, production consisted of 7,864 bbls/day of crude oil, 246 bbl/day of NGLs and 15,801 boe/day of natural gas. Production increase was a result of additional volumes from acquisition of 20% additional stake in the NAOC JV in Q4 offset by the impact of shut in wells for repairs from sabotage activities.
During the twelve (12) months to December 31, 2024, the Group 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 twelve months to December 31, 2023.
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