Oando Plc recorded a 45 per cent increase in revenue to N4.1trillion for the financial year ended December 31, 2024, compared to N2.9 trillion recorded in the previous year.
According to the company’s unaudited financial statements, released on Friday on the Nigeria Exchange Limited, the company recorded a 9 per cent growth in profit after tax, rising to N65.5 billion from N60.3 billion in 2023.
The report noted that the revenue growth was driven by higher crude oil volumes, increased gas prices, and the impact of foreign exchange gains, despite lower trading volumes and a decline in realized crude oil prices.
The Group Chief Executive of Oando Plc, Wale Tinubu, attributed the performance of the company to the strategic expansion, particularly its acquisition of a 20 per cent additional stake in NAOC Limited, which significantly boosted production capacity.
“Our successful integration of NAOC Ltd enabled us to achieve peak operated production of 103,206 barrels of oil equivalent per day (boepd) and net entitlements of 45,000 boepd,” Tinubu stated.
The company recorded a 46 per cent increase in exit production, rising to 30,712 boepd in 2024 from 21,036 boepd in 2023, while average production grew by 3 per cent to 23,911 boepd from 23,258 boepd in the previous year.
Despite the revenue growth, the company’s operating profit only inched up by 1 per cent to N220.2 billion, impacted by higher administrative expenses, foreign exchange losses from the revaluation of payables and borrowings, and costs associated with the NAOC acquisition.
Looking ahead, Tinubu said the company would focus on cost optimization, operational efficiency, and an aggressive drilling programme across three rig lines to boost production in 2025.
“We are also implementing a revamped security framework with advanced surveillance technology and intelligence-driven initiatives to curb oil theft and ensure the integrity of our operations,” the report by Punch newspaper quoted Tinubu as saying.
GIK/APA