Photo caption: Oando logo
Integrated energy company, Oando Plc, has reported a 267 per cent appreciation in its profit after tax to N220bn in the 2024 financial year.
This was indicated in its audited financial report filed with the Nigerian Exchange on Wednesday.
Oando PLC is listed on both the Nigerian Exchange and the Johannesburg Stock Exchange.
In the period under review, Oando posted a 44 per cent increase in revenue to N4.1tn compared to N2.9tn in FY 2023.
In the upstream, Oando’s production witnessed a three per cent increase to 23,727 bpd; made up of crude oil production which increased by 27 per cent to 7,558 bopd, while NGL production and gas decreased respectively by 35 per cent to 156 bpd, and 5 per cent to 16,013 boepd.
The company’s 2P reserves grew 95 per cent year-on-year to 983 MMboe (2023: 505 MMboe), representing a 188 per cent reserves replacement ratio and underscoring the strength of the company’s upstream portfolio post-acquisition.
The company also reported a sustained operational uptime of 86 per cent, supporting off-take reliability and reducing deferred production.
Speaking on the company’s upstream performance, Group Chief Executive, Oando PLC, Wale Tinubu 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 per cent to 40 per cent, as well as our 2P reserves from 500 million barrels of oil equivalent to one billion barrels.”
Other indigenous players have also reported significant revenue growth following the recent wave of International Oil Company divestments. Seplat recorded a revenue of N1.65 trillion, representing a 137 per cent increase from 2023, while Aradel posted N581.2bn in revenue, a 162 per cent increase compared to the previous year.
In the downstream, Oando’s trading subsidiary reported that it sold 20.7 million barrels of crude oil in 2024; a 37 per cent decline from 2023 due to structural changes in the Nigerian oil market.
Additionally, refined product volumes declined by 64 per cent to just over 599 kMT, due to weakened domestic demand, driven by the challenging macroeconomic in-country.
Within its renewable energy business, the company continued to advance its clean energy agenda, recording measurable progress across multiple verticals.
By the end of 2024, the electric mass transit programme had covered 121,145km, transported over 205,000 passengers, displacing 163,546 kg of CO₂ emissions and saving more than 60,000 litres of diesel.
Other notable achievements include signing MoUs for wind projects with Cross River and Edo State, as well as launching a geothermal feasibility study in collaboration with NNPC, and exploring the conversion of mature wells to renewable power assets.
The published audited FY 2024 results also include approximately four months of contribution from Nigerian Agip Oil Company following the completion of the acquisition on August 22, 2024.
Following this, the company has set a production guidance of 30,000–40,000 barrels of oil equivalent per day (boepd) in its 2025 outlook.
This aligns with its post-acquisition optimisation plans to maximise portfolio value and supports its four-year target of reaching 100,000 barrels per day.
