Financial Energy Review
Oando PLC, Africa’s leading integrated energy company, has announced a remarkable financial performance for the Full Year (FY) 2024, reporting a 45% growth in revenue, which surged to N4.1 trillion compared to N2.9 trillion in the previous year. This strong performance highlights the company’s resilience and capacity to thrive despite challenging operating conditions.
The company’s FY 2024 results also include a 9% rise in profit after tax, which reached N65.5 billion, further underscoring the strength of its diversified energy portfolio and successful strategic initiatives.
Speaking about the results, Oando’s Group Chief Executive Officer (CEO), Wale Tinubu, emphasized the transformative nature of 2024 for the company. “2024 was a year of transformation for Oando, with the key highlight being our successful acquisition and integration of NAOC Ltd. This acquisition significantly enhanced our production capacity, helping us achieve peak operated production of 103,206 barrels of oil equivalent per day (boepd) and net entitlements of 45,000 boepd,” Tinubu said.
The company’s acquisition of a 20% additional stake in the Nigerian Agip Oil Company (NAOC) joint venture (JV) in the fourth quarter of 2024 was a pivotal move that boosted Oando’s production capacity. As a result, Oando’s average production for 2024 rose to 23,911 boe/d, an increase from the 23,258 boe/d achieved in 2023.
However, the company faced challenges during the year, including production disruptions caused by sabotage activities that led to the shut-in of several wells. Despite these setbacks, Oando continued to show resilience, posting impressive revenue growth, with a 45% increase in total revenue. This performance reflects the company’s robust business model and its ability to adapt and overcome adversities in a volatile operating environment.
Oando also made significant strides in its capital expenditure strategy, investing $18.1 million in oil and gas assets and exploration activities, a notable decrease from the $52.3 million invested in 2023. This reduction was primarily due to a more focused capital allocation strategy and the completion of key projects.
Looking ahead to 2025, Tinubu laid out the company’s priorities for sustained growth and operational efficiency. “In 2025, our priority will be to drive cost optimization, enhance operational efficiency, streamline processes, and leverage technology to boost productivity across our operations,” he said. He further emphasized the importance of increasing production through a combination of rig-less and workover initiatives, in addition to an aggressive drilling program.
As part of its efforts to improve security, Oando plans to implement a revamped security framework, integrating advanced surveillance technology and intelligence-driven measures to combat oil theft, a persistent challenge in the region. “We are proactively tackling above-ground security challenges by implementing a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives,” Tinubu added.
The company’s 2025 outlook is bolstered by positive global oil demand predictions. According to the U.S. Energy Information Administration (EIA), global oil demand is expected to grow by 1.3 million barrels per day (bpd) in 2025, a notable increase compared to the 0.9 million bpd growth forecasted for 2024. This demand growth surpasses the pre-pandemic 10-year average of 1.5 million bpd, indicating a positive trajectory for the global oil market.
With this backdrop of favorable market conditions and a strong operational foundation, Oando is well-positioned to capitalize on emerging opportunities. The company has reaffirmed its commitment to its strategic vision of becoming Africa’s first international oil company (IOC) by leveraging its operational capabilities and strategic partnerships.
As the company enters 2025, it remains focused on delivering value to its stakeholders and contributing to the sustainable development of the energy sector across Africa. Tinubu concluded, “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.”
Oando’s strong financial performance and ambitious plans for 2025 position the company as a leading player in Africa’s energy sector, with the potential to achieve even greater success in the years ahead.
