Oando PLC Shines with Stellar FY 2024 Audited Financials

Oando PLC, Nigeria’s leading indigenous energy company, released its audited financial results for 2024, showcasing a transformative year marked by robust financial growth, a landmark acquisition, and ambitious strides in Nigeria’s energy sector.

Despite a tough economic climate characterized by naira devaluation and security challenges, Oando’s performance underscores its resilience and strategic vision, delivering significant value to shareholders and reinforcing its pivotal role in Nigeria’s oil and gas industry.

Key Financial and Operational Highlights

Oando reported a remarkable 44% increase in revenue, reaching N4.1 trillion in 2024, up from N2.9 trillion in 2023. This surge was driven by higher upstream production and foreign exchange gains amid the naira’s devaluation (N1,515.9/$1 in 2024 vs. N668.6/$1 in 2023).

Profit after tax soared by 267% to N220 billion, compared to N60 billion in 2023, fueled by the acquisition of the Nigerian Agip Oil Company (NAOC) in August 2024. The NAOC deal, valued at $754 million, doubled Oando’s working interest in OMLs 60-63 from 20% to 40% and boosted its 2P reserves by 95% to 983 million barrels of oil equivalent (MMboe), positioning Oando as a dominant upstream player.

Operationally, Oando achieved an average daily production of 23,727 barrels of oil equivalent per day (boepd), a 3% increase from 2023, with a year-end exit rate of 36,000 boepd, reflecting the NAOC acquisition’s immediate impact.

Crude oil production rose 22% to 7,558 barrels per day (bopd), though natural gas liquids (NGLs) and gas output saw declines due to infrastructure challenges and sabotage. The company’s commitment to safety remained strong, with zero fatalities and 7.35 million lost-time injury (LTI)-free hours in 2024.

Oando’s trading arm faced headwinds, with crude oil volumes dropping 37% to 20.7 million barrels and refined products plummeting 64% to 599,692 metric tons, impacted by Nigeria’s shifting domestic supply dynamics and macroeconomic pressures like inflation and subsidy removal.

However, Oando’s clean energy initiatives gained traction, with its electric mass transit program in Lagos transporting over 205,000 passengers and avoiding 163,500 kg of CO₂ emissions, aligning with Nigeria’s energy transition goals.

Implications for Nigeria

Oando’s 2024 performance has far-reaching implications for Nigeria’s energy sector and economy. The NAOC acquisition has solidified Oando’s role as a key driver of Nigeria’s oil and gas production, enhancing energy security at a time when global demand for reliable energy sources remains high.

The company’s operatorship of OMLs 60-63 and its expanded infrastructure, including pipelines and power plants, positions it to meet growing domestic gas demand and support Nigeria’s decarbonization efforts through its Zero Routine Flaring Programme, which achieved a 92% reduction in flaring since 2007.

For investors, Oando’s financial success and planned distribution of 1.28 billion shares in 2025 signal strong shareholder value. However, the company’s total liabilities rose to N6.8 trillion, driven by acquisition-related debt, highlighting the need for its planned capital restructuring to ensure long-term financial stability.

For the broader Nigerian economy, Oando’s investments in clean energy and mining, including lithium and bitumen projects, promise diversification and job opportunities.

Challenges remain, notably persistent oil theft and pipeline sabotage, which Oando is addressing through a revamped security framework. The naira’s devaluation and high inflation continue to pressure costs, with administrative expenses spiking 134% to N610.9 billion due to acquisition-related fees. These hurdles underscore the need for Oando’s cost optimization and FX risk management strategies in 2025.

Commenting on the results, Wale Tinubu CON, Group Chief Executive, Oando PLC said:

“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% to 40%, as well as our 2P reserves from 500 million barrels of oil equivalent to 1 billion barrels.

Despite a challenging macroeconomic and security environment, we delivered a 44% revenue increase to ₦4.1 trillion and a 267% rise in profit after tax to ₦220 billion, occasioned by the intrinsic value of the NAOC acquisition and underscoring the resilience of our business model. In parallel, we achieved innovative success in our global trading operations whilst expanding our clean energy initiatives.

Looking ahead, 2025 will be our year of execution. 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 dualtrack 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”.

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