Oando PLC, Africa’s leading integrated energy company listed on the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), has announced a strong financial performance for Full Year (FY) 2024, with revenue surging by 45% to N4.1 trillion, compared to N2.9 trillion in FY 2023. The company also posted a 9% increase in profit after tax (PAT) to N65.5 billion, demonstrating resilience and strategic growth amid industry challenges.
Strategic Expansion Drives Growth
Group Chief Executive, Wale Tinubu, CON, attributed Oando’s performance to its successful acquisition and integration of NAOC Ltd., which significantly enhanced its production capacity, reaching a peak operated production of 103,206 barrels of oil equivalent per day (boepd) and net entitlements of 45,000 boepd. Despite industry challenges, this acquisition contributed to the company’s sustained revenue growth and operational stability.
For the twelve months ending December 31, 2024, Oando’s average daily production rose to 23,911 boepd, up from 23,258 boepd in 2023. This increase was primarily driven by the company’s 20% additional stake in the NAOC JV, acquired in Q4 2024. However, production disruptions due to sabotage-related shut-in wells partially offset these gains.
Capital Investments and Operational Efficiency
Oando invested $18.1 million in capital expenditures for oil and gas development and exploration activities in 2024, a decline from $52.3 million in 2023. This reflects a strategic approach to optimizing investments while maintaining operational efficiency.
Looking ahead, Tinubu outlined Oando’s 2025 priorities, emphasizing cost optimization, process streamlining, enhanced procurement, and leveraging technology to boost productivity. He also highlighted plans for an aggressive drilling program across three rig lines and intensified efforts to enhance security by implementing advanced surveillance technology and intelligence-driven measures to combat oil theft.
Positive Market Outlook for 2025
Oando’s growth plans are supported by optimistic global oil demand forecasts. According to the U.S. Energy Information Administration (EIA), oil demand is expected to grow by 1.3 million barrels per day (bpd) in 2025, surpassing the 0.9 million bpd growth estimated for 2024. This forecast aligns with pre-pandemic demand trends, reinforcing confidence in market stability.
Building on a Strong Foundation
With its financial reporting now fully up to date and regulatory requirements met, Oando is entering 2025 on a solid foundation. The company remains committed to its strategic vision of becoming Africa’s first international oil company (IOC), leveraging its strong operational capabilities and partnerships to create long-term value for stakeholders.
“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," Tinubu said.
With a focus on expansion, operational excellence, and regulatory compliance, Oando is poised to capitalize on new opportunities and drive continued success in 2025.
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