Oando is one of Africa’s leading integrated energy companies, that is listed on both the Nigerian Exchange (NGX) and Johannesburg Stock Exchange (JSE), has announced a strong financial performance for the Full Year (FY) 2024 with an exceptional 45% growth in revenue to N4.1 Trillion (Nigerian Naira) a big jump from the N2.9 Trillion for its full year result in 2023.
The company’s 2024 revenue performance translated into a handy N65.5 billion in profit after tax, placing the group in a solid position for growth.
Acquisition of NAOC a Success
Orlando Group Chief Executive, Wale Tinubu CON, commented, “2024 was a year of transformation for Oando, the key highlight being our successful acquisition and subsequent integration of NAOC Ltd, which significantly enhanced our production capacity, attaining peak operated production of 103,206boepd and net entitlements of 45,000 boepd.
Tinibu stated that despite a challenging operating environment, the company had improved revenue to ₦4.1 trillion, reflecting the strength of their business model, with a 9% rise in profit after tax to ₦65.5 billion, despite the additional costs incured with the onboarding of NAOC.
Oando’s production for the twelve months ended December 31, 2024, averaged 23,911 barrels of oil equivalent per day (boe/d), an increase from the 23,258 boe/d achieved in 2023. This growth was primarily driven by the acquisition of an additional 20% stake in the NAOC JV in Q4, partially offset by production disruptions due to shut-in wells resulting from sabotage activities.
Additionally, the Group incurred $18.1 million on capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $52.3 million in the twelve months to December 31, 2023.
Strong Growth in 2025 Projected
Looking ahead to 2025, Tinubu stated, “In 2025, our priority shall be to drive cost optimization, operational efficiency, streamline processes, enhance procurement, and leverage technology to improve productivity across our operations. In parallel, we will intensify efforts to boost production through the dual approach of rig-less and workover initiatives while executing an aggressive drilling program across three rig lines.
Simultaneously, in collaboration with other stakeholders, we are proactively tackling above-ground security challenges by implementing a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives to curb the perennial, unnecessary, and unjustifiable theft of oil to ensure the long-term integrity of our vast network.
As the company prepares for its 2025 targets, it has also been supported by optimistic oil demand predictions. The U.S. Energy Information Administration’s (EIA) global oil demand predictions forecast global demand to grow by 1.3 million barrels per day (bpd) in 2025, a significant increase from the estimated growth of 0.9 million b/d in 2024. This projected growth surpasses the pre-pandemic 10-year average (2010-2019) of 1.5 million bpd, indicating a positive trajectory for the global oil market.