Oando PLC, Africa’s leading integrated energy company listed on both the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), has announced a robust financial performance for the Full Year (FY) 2024, recording a 45% increase in revenue to ₦4.1 trillion, up from ₦2.9 trillion in FY 2023. The company also posted a 9% rise in profit after tax (PAT) to ₦65.5 billion, underscoring its strong growth trajectory.
Strategic Expansion Fuels Growth
Commenting on the results, Wale Tinubu, Group Chief Executive, Oando PLC, stated:
“2024 was a transformative year for Oando, highlighted by the successful acquisition and integration of NAOC Ltd. This significantly enhanced our production capacity, achieving a peak operated production of 103,206 boepd and net entitlements of 45,000 boepd. Despite a challenging operating environment, we delivered a 45% increase in revenue and a 9% rise in profit after tax, demonstrating the resilience of our business model.”
Oando’s production for the twelve months ended December 31, 2024, averaged 23,911 barrels of oil equivalent per day (boe/d), up from 23,258 boe/d in 2023. This increase was primarily driven by the acquisition of an additional 20% stake in the NAOC JV in Q4 2024. However, production was partially impacted by shut-in wells due to sabotage activities.
Additionally, the Group invested $18.1 million in capital expenditures for the development of oil and gas assets, exploration, and evaluation activities, compared to $52.3 million in 2023.
2025 Outlook: Efficiency, Growth, and Security Enhancement
Looking ahead, Tinubu outlined Oando’s key priorities for 2025, emphasizing:
• Cost optimization & operational efficiency – streamlining processes, enhancing procurement, and leveraging technology to improve productivity.
• Production growth – executing an aggressive drilling program across three rig lines while implementing rig-less and workover initiatives.
• Security enhancement – collaborating with stakeholders to implement a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives to combat oil theft and infrastructure sabotage.
• Community engagement – fostering strong relationships with host communities and partners to ensure sustainable development and long-term operational success.
“As we embark on an exciting 2025, we recognize the importance of collaboration with our host communities and stakeholders. Through extensive engagement, we will drive shared prosperity while securing our operations for sustained growth,” Tinubu added.
Strong Market Fundamentals Support Growth Ambitions
Oando’s 2025 strategy is reinforced by optimistic global oil demand projections. According to the U.S. Energy Information Administration (EIA), global oil demand is expected to grow by 1.3 million barrels per day (bpd) in 2025, surpassing the 0.9 million bpd estimated for 2024. This trajectory exceeds the pre-pandemic 10-year average (2010-2019) of 1.5 million bpd, indicating a positive outlook for the oil market.
With this strong financial performance and clear strategic vision, Oando enters 2025 well-positioned to build on its successes, leveraging its operational expertise, strategic partnerships, and market opportunities to drive long-term value for its stakeholders.
