Oando Plc, one of Nigeria’s leading energy companies, has announced a full-year pre-tax profit of N47.7 billion for 2024, according to its latest financial report released on January 30, 2025. While this marks a decline from the N102.9 billion pre-tax profit recorded in 2023, the company bounced back strongly in Q4 2024 with a pre-tax profit of N16.6 billion, recovering from a loss of N29.5 billion in Q4 2023.
Despite profit fluctuations, Oando’s revenue surged by 44.86%, reaching N4.1 trillion in 2024, up from N2.8 trillion in 2023. This growth was driven primarily by its Supply & Trading business, which deals in crude oil, refined petroleum products, and natural gas.
Key Financial Highlights (2024 vs 2023)
•Revenue:N4.1 trillion (+44.86% YoY)
•Cost of Sales:N3.8 trillion (+39.09% YoY)
•Gross Profit:N282.5 billion (+232.31% YoY)
•Other Operating Income:N349.7 billion (-12.56% YoY)
•Administrative Expenses:N402.6 billion (+54.08% YoY)
•Operating Income:N220.1 billion (+0.87% YoY)
•Finance Costs:N232.1 billion (+74.04% YoY)
•Finance Income:N58.4 billion (+245.77% YoY)
•Pre-tax Profit:N47.7 billion (-53.60% YoY)
•Post-tax Profit:N65.4 billion (+8.65% YoY)
Breakdown of Oando’s Business Performance
Oando’s revenue of N4.1 trillion in 2024 was driven by:
•Supply & Trading of crude oil, refined, and unrefined petroleum products:N3.7 trillion (89.73% of revenue)
•Exploration & Production (oil and gas drilling):N415 billion (10.11% of revenue)
•Other corporate business:N4.1 billion (0.10% of revenue)
Despite the revenue growth, cost of sales rose by 39.09%, hitting N3.8 trillion, driven by higher costs of petroleum imports and operations.
However, gross profit surged by 232.31%, rising to N282.5 billion from N85 billion in 2023.
Other key observations:
•Foreign exchange gains contributed 91.04% of Oando’s N349.7 billion other operating income.
•Administrative expenses jumped by 54.08%, reaching N402.6 billion, increasing pressure on overall profit margins.
•Finance costs rose sharply by 74.04% to N232.1 billion, reflecting higher interest expenses on loans.
•Finance income, however, surged by 245.77% to N58.4 billion, helping offset the impact of rising costs.
Despite these challenges, Oando recorded an 8.65% increase in post-tax profit, hitting N65.4 billion compared to N60.2 billion in 2023.
Oando’s Asset Growth in 2024
The company’s total assets grew significantly to N7.5 trillion, up from N2.6 trillion in 2023, marking a 188% increase.
•Non-current assets (including oil rigs, equipment, and long-term investments) rose to N3.8 trillion, with property, plant, and equipment making up 53.13% of the total.
•Current assets (cash, receivables, and short-term investments) jumped to N3.6 trillion, up from N815.5 billion, largely driven by a surge in trade receivables and contract assets.
What This Means for Oando
While Oando’s profit declined year-over-year, the strong Q4 comeback and major revenue growth show the company is navigating challenges effectively. The growth in assets also signals that Oando is expanding its oil and gas investments, positioning itself for a stronger financial outlook in 2025.
With Nigeria’s energy sector facing currency volatility, regulatory changes, and fluctuating oil prices, Oando’s ability to adapt and maintain profitability will be closely watched by investors and industry analysts.
