Oando Plc has reached a significant milestone by becoming Nigeria’s first indigenous International Oil Company (IOC), marking a new era in its operations beyond the shores of Nigeria in the São Tomé and Príncipe Exclusive Economic Zone (EEZ). This achievement is a testament to the relentless efforts of its dedicated team led by Chief Executive Officer Wale Tinubu, who has been a trailblazer in the oil and gas sector for decades.
As a premier African exploration and production company, Oando boasts a robust portfolio in Africa’s upstream sector. The company has made substantial investments across various oil and gas fields, holding interests in over 16 licenses for exploration, development, and production across onshore, swamp, and offshore assets.
Oando’s credibility is further reinforced by its Certified Professional Reserves Report (CPR) from D&M, the second-largest firm globally in this sector. D&M has audited major oil companies, including ENI/NAOC, Chevron, and Shell, providing confidence in Oando’s operations. The CPR indicates that the company’s gross recoverable 2P reserves, combined with its stakes, have catapulted its total value to $4 billion, prior to the deduction of acquisition debt and legacy obligations.
After applying appropriate financial adjustments, including working capital, Oando’s actual net asset value (NAV) stands at about $3 billion. Given the current economic climate, marked by a 3% inflation rate in the U.S. versus over 30% in Nigeria, the company’s valuation reflects a calculated devaluation of 27% this year. However, insiders project a phenomenal investment potential, especially in Naira terms, driven by its dollar-denominated earnings.
Oando has consistently demonstrated a commitment to delivering sustainable value to its stakeholders. This commitment has seen the company enhance its reserves while acquiring near-term producing assets from international oil companies. Moreover, Oando is dedicated to nurturing young talents through an accelerated training program, in collaboration with seasoned professionals from multinational firms.
In 2023, Oando’s stock performance was remarkable, achieving a 159% year-to-date gain, with a further 14% increase in the first quarter of 2024. The release of the company’s 2023 financial results on May 31, 2024, showcased a dramatic turnaround, with a pre-tax profit of N104.1 billion, a stark contrast to a pre-tax loss of N61.8 billion in 2022. This positive trajectory continued following the federal government’s approval of Oando’s 100% acquisition of NAOC, propelling its share price to a five-year high of N47.85 and recording a year-to-date gain of 371.5%, making it the second-best performing stock on the Nigerian Exchange (NGX) at that time.
Commenting on the company’s performance, Wale Tinubu stated, “Despite persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, we achieved a profit after tax of N74.7 billion in 2023. This was largely driven by increased trading volumes from our strategic global partnerships and net foreign exchange gains on our foreign currency-denominated assets.”
With the transformative acquisition of NAOC, Oando is poised to emerge as a clear leader in Nigeria’s oil and gas industry, significantly enhancing its production capacity. Tinubu has emphasized the company’s commitment to optimizing these new assets and exploring strategic diversification in areas like clean energy and energy infrastructure.
As Oando Plc stands at the forefront of Nigeria’s oil and gas sector, its journey reflects a commitment to growth, resilience, and a vision for a sustainable energy future.
