Oando PLC, one of Nigeria’s indigenous energy groups, has recorded a 267 per cent rise in profit after tax for the 2024 financial year, fuelled by its acquisition of Nigerian Agip Oil Company (NAOC), a former subsidiary of Italian energy giant Eni.
Data sourced from the company’s audited financial results released on Wednesday showed profit surged to N220 billion from N60 billion in 2023.
“We delivered a 44 percent revenue increase to N4.1 trillion and a 267 percent rise in profit after tax to N220 billion, occasioned by the intrinsic value of the NAOC acquisition and underscoring the resilience of our business model,” said Wale Tinubu, group chief executive officer of Oando.
He added, “We achieved innovative success in our global trading operations whilst expanding our clean energy initiatives.”
Oando’s financials also showed the NAOC’s transaction bolstered Oando’s position in Nigeria’s upstream sector, granting its operatorship of Oil Mining Licences (OMLs) 60 to 63 and increasing its working interest in the assets from 20 per cent to 40 per cent.
Reserves grew by 95 percent to 983 million barrels of oil equivalent, up from 505 million barrels in 2023.
Revenue climbed 44 per cent year-on-year to N4.1 trillion, compared to N2.9 trillion in 2023, supported by higher upstream output and favourable foreign exchange gains.
However, capital expenditure dropped sharply to N19 billion from N45 billion in the previous year, reflecting the company’s prioritisation of the NAOC deal.
Development activities are expected to ramp up significantly in 2025.
Operational performance
In upstream operations, Oando achieved an average daily production of 23,727 barrels of oil equivalent per day (boepd), a 3 percent increase year-on-year. The end-of-year exit rate rose to 36,000 boepd, with crude oil production climbing 22 percent to 7,558 barrels per day. Gas production dipped 5 percent to 16,013 boepd, while natural gas liquids output fell 35% to 156 barrels per day.
Operational uptime held steady at 86 percent, helping reduce deferred production and enhancing off-take reliability. Oando also reported a lost time injury frequency (LTIF) of just 0.05, totaling 7.35 million LTI-free hours, reaffirming its safety and operational discipline.
Environmental responsibility remains a cornerstone of Oando’s strategy, with the company achieving a 92 percent reduction in routine gas flaring as it works toward its 2027 zero-flaring target in alignment with national and joint venture commitments.
Global trading & Clean energy initiatives
Oando’s global trading business was more subdued, with crude oil trading volumes falling 37 per cent to 20.7 million barrels due to a realignment of market strategies. Refined product volumes also declined 64 per cent to 599,000 metric tonnes, primarily due to changes in Nigeria’s domestic fuel supply dynamics.
Despite these declines, the company contributed $550 million in crude prepayments to NNPC’s Project Gazelle, strengthening its long-term trading footprint and enhancing volume security.
On the clean energy front, Oando’s electric mass transit initiative delivered over 121,000 kilometers of service in 2024, transporting more than 205,000 passengers and avoiding an estimated 163,500 kg of CO₂ emissions. The company is set to expand the programme with 50 new electric buses in 2025.
Additional progress was made in renewable energy with signed memoranda of understanding for 275 megawatts of wind energy projects in Cross River and Edo States. Oando also advanced development of a 1.2 gigawatt solar module assembly plant and initiated geothermal feasibility studies in partnership with NNPC.
Mining & infrastructure
Beyond oil and gas, Oando is diversifying into mining and infrastructure.
In 2024, the company completed fieldwork across several lithium, gemstone, and limestone prospects. It also concluded an Environmental and Social Impact Assessment for Nigeria’s first commercial-scale bitumen mine, laying the groundwork for feasibility studies and potential development in 2025.
Shareholder Returns
In December 2024, Oando implemented a strategic board refresh, appointing a new chairman and independent non-executive directors aimed at enhancing governance, transparency, and investor alignment. Shareholders also approved the distribution of 1.28 billion ordinary shares, reflecting the company’s commitment to returning value.
2025 Outlook: Focus on Execution
With 2024’s transformational acquisition behind it, Oando is setting its sights on operational execution and value delivery. The company aims to scale production to between 30,000 and 40,000 boepd, while targeting trading volumes of up to 35 million barrels of crude oil and 1 million metric tonnes of refined products.
Other priorities include security enhancements across assets, cost optimisation, balance sheet restructuring, and accelerating the use of technology to boost productivity.
“Our 2025 focus is clear,” Tinubu added. “We’re entering a new phase, one of execution and delivery, with a strong asset base, resilient business model, and a clear path to achieving 100,000 bopd and 1.5 tcf of gas by 2029. We remain committed to delivering enhanced shareholder returns, sustainable prosperity, and maintaining our leadership in Africa’s dynamic energy sector.”
BusinessDay