Oando Profit Soars 267% to N220bn on NAOC Integration
Oando Plc’s profit after tax soared by 267% year on year in financial year 2024 to N220 billion following the consolidation of Nigeria Agip Oil Company’s assets and liabilities into the group.
In its regulatory filing, the indigenous energy company revealed that its revenue jumped up by 44% to ₦4.1 trillion from ₦2.9 trillion in 2023, driven by higher upstream output and FX gains. Profit after tax up 267% to ₦220 billion from ₦60 billion, while the company’s Capital expenditure totalled ₦19 billion, a significant decline from ₦45 billion in 2023
The company explained that the reduction in capital expenditure reflected the focus on completing the NAOC acquisition, adding that development activity is expected to ramp up in 2025.
Pursuant to shareholder approval at the annual general meeting held on 17 December 2024, the board approved the distribution of 1.28 billion ordinary shares to shareholders. “The Group’s results for the year ended December 31, 2024, include approximately four months of contribution from Nigerian Agip Oil Company, following the completion of the acquisition on August 22, 2024”, the company said.
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 that 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 dual-track 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”. CBN Sets to Open N450bn Treasury Bills Auction for Subscription
