Led by Wale Tinubu, Oando Plc, one of Nigeria’s largest energy companies, recorded a massive 45% increase in revenue, reaching ₦4.12 trillion ($2.76 billion) in 2024, up from ₦2.85 trillion ($1.9 billion) in 2023. This growth was fueled by higher crude oil production, rising gas prices, and favorable exchange rates.
However, despite the strong revenue performance, high production and finance costs limited profit growth. Direct production costs soared to ₦3.84 trillion ($2.56 billion), while administrative expenses rose to ₦402.7 billion ($269.5 million). The company’s profit for the year grew by just 9%, reaching ₦65.5 billion ($43.9 million) compared to ₦60.3 billion ($40.3 million) in 2023.
Key Financial Highlights (2024 vs. 2023):
•Revenue: ₦4.12 trillion ($2.76 billion) (+45%)
•Production Costs: ₦3.84 trillion ($2.56 billion) (+35%)
•Administrative Expenses: ₦402.7 billion ($269.5 million) (+19%)
•Finance Costs: ₦232.1 billion ($155.3 million) (+12%)
•Profit for the Year: ₦65.5 billion ($43.9 million) (+9%)
•Retained Loss Reduction: ₦452.2 billion ($302.7 million) from ₦506 billion ($338.7 million)
What’s Driving Oando’s Growth?
Higher crude oil and gas sales – Improved production capacity following the acquisition of NAOC Ltd boosted revenue.
Favorable exchange rates – Currency fluctuations helped increase dollar-denominated revenue.
Strategic acquisitions and expansions – The NAOC Ltd acquisition increased Oando’s operated production to 103,206 boepd and net entitlements to 45,000 boepd.
Challenges to Watch:
Rising operational costs – Higher production and admin expenses cut into profits.
Debt servicing burden – Finance costs remain high at ₦232.1 billion ($155.3 million).
Slower profit growth – Despite revenue gains, net profit grew by only 9%.
Oando’s 2025 Vision
CEO Wale Tinubu emphasized cost optimization, operational efficiency, and advanced technology as the company’s priorities for 2025. Oando plans to increase production through rig-less and workover initiatives while executing an aggressive drilling program across three rig lines.
“We will foster a collaborative ecosystem that not only secures our operations but also drives shared prosperity and sustainable development for all,” Tinubu stated.
With a strong revenue base, a growing production capacity, and strategic cost-cutting plans, Oando aims for even greater financial performance in 2025.
