Oando Plc, a leading Nigerian energy company, reported a ₦220 billion profit after tax for 2024, marking a 267% increase from 2023. The sharp growth follows its strategic acquisition of Nigerian Agip Oil Company (NAOC), a former subsidiary of Eni.
In its audited 2024 financial results, the company revealed that its revenue rose by 44% to ₦4.1 trillion, up from ₦2.9 trillion in 2023. This performance was mainly driven by improved upstream output, favorable foreign exchange rates, and the value added by the NAOC deal.
Group CEO Wale Tinubu stated, “We delivered a 44 percent revenue increase to ₦4.1 trillion and a 267 percent 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.”
He added, “We achieved innovative success in our global trading operations whilst expanding our clean energy initiatives.”
NAOC Acquisition Strengthens Oando’s Upstream Position
The acquisition of NAOC significantly increased Oando’s role in Nigeria’s upstream oil sector. The company now operates Oil Mining Licenses (OMLs) 60 to 63 and has doubled its working interest in those assets from 20% to 40%.
As a result, Oando’s total oil and gas reserves surged by 95% to 983 million barrels of oil equivalent, compared to 505 million barrels in 2023. Despite the boost in operations, capital expenditure dropped to ₦19 billion from ₦45 billion in 2023. The company plans to increase development activities in 2025.
Improved Operational Performance and Safety Record
Oando recorded an average daily production of 23,727 barrels of oil equivalent per day (boepd), showing a 3% increase year-on-year. Its year-end production exit rate reached 36,000 boepd.
Crude oil production rose 22% to 7,558 barrels per day. However, gas production declined slightly by 5% to 16,013 boepd, and natural gas liquids output fell by 35% to 156 barrels per day.
Operational uptime was steady at 86%, helping reduce production delays. Oando also posted a lost time injury frequency (LTIF) of just 0.05, maintaining 7.35 million LTI-free hours. This reinforces the company’s focus on safety and efficient operations.
Oando cut routine gas flaring by 92% in 2024. The company is working towards zero flaring by 2027, in line with Nigeria’s energy goals and its joint venture commitments.
Clean Energy and Trading Business Expansion
Although global crude trading volumes fell by 37% to 20.7 million barrels, and refined products dropped 64% to 599,000 metric tonnes, the company made strategic moves. It contributed $550 million in crude prepayments to NNPC’s Project Gazelle, securing future trading volumes.
Oando’s clean energy push included a successful electric bus program that covered over 121,000 kilometers and carried more than 205,000 passengers. The initiative prevented about 163,500 kg of CO₂ emissions. Plans are underway to introduce 50 more electric buses in 2025.
The company signed agreements for 275 megawatts of wind projects in Cross River and Edo States. It also progressed a 1.2-gigawatt solar panel assembly plant and began geothermal studies with NNPC.
Mining, Infrastructure and Shareholder Value
In 2024, Oando expanded beyond oil into mining and infrastructure. It completed early fieldwork on lithium, gemstones, and limestone sites. The company also concluded an environmental study for Nigeria’s first commercial bitumen mine, with plans to launch feasibility studies in 2025.
Oando restructured its board in December 2024, appointing a new chairman and independent directors. The company also issued 1.28 billion ordinary shares to shareholders, showing its intent to return value and increase transparency.
Plans for 2025 and Long-Term Targets
Oando will focus on strong execution in 2025. It plans to raise daily production to 30,000–40,000 boepd. The company also targets trading up to 35 million barrels of crude oil and 1 million metric tonnes of refined products.
Additional goals include improving asset security, reducing costs, restructuring debt, and boosting digital tools for better productivity.
CEO Wale Tinubu said, “Our 2025 focus is clear. We’re entering a new phase, one of execution and delivery, with a strong asset base, resilient business model, and a clear path to achieving 100,000 bopd and 1.5 tcf of gas by 2029. We remain committed to delivering enhanced shareholder returns, sustainable prosperity, and maintaining our leadership in Africa’s dynamic energy sector.”
Rate, Like 👍, Comment, share this article and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
