Business
Oando reports ₦220bn profit, strong revenue growth, and upstream expansion in 2024
Oando PLC, a leading African integrated energy company listed on both the Nigerian Exchange Group (NGX) and the Johannesburg Stock Exchange (JSE), has released its audited financial results for the full year ending 2024, posting a Profit-After-Tax of ₦220 billion — a remarkable 267% increase compared to the previous year. Revenue also surged by 44%, hitting ₦4.1 trillion, up from ₦2.9 trillion in 2023.
The impressive performance comes amid a broader industry shift, as Nigerian indigenous oil and gas firms increasingly take centre stage following divestments by International Oil Companies (IOCs).
Oando’s upstream production rose 3% year-on-year to 23,727 barrels of oil equivalent per day (boepd), driven largely by a 27% rise in crude oil output to 7,558 bopd. However, Natural Gas Liquids (NGL) and gas production declined by 35% and 5% respectively. Notably, the company’s 2P reserves nearly doubled, increasing 95% from 505 million barrels of oil equivalent (MMboe) in 2023 to 983 MMboe in 2024. This represented a 188% reserves replacement ratio — a strong indicator of growth following the acquisition of Nigerian Agip Oil Company (NAOC).
The acquisition, completed on August 22, 2024, marked a significant turning point in Oando’s decade-long strategy. It doubled the company’s working interest in the OML 60–63 assets from 20% to 40% and transferred operatorship to Oando, enabling greater control over asset performance.
“Our 2024 results reflect the culmination of a strategic growth journey,” said Wale Tinubu, Group Chief Executive of Oando PLC. “With the successful integration of NAOC, we’ve significantly deepened our upstream portfolio. Looking ahead, we’re focused on extracting synergies, improving operational efficiency, and ramping up production.”
In contrast, Oando’s downstream trading business experienced a slowdown, with crude oil sales dropping 37% to 20.7 million barrels due to changes in the structure of Nigeria’s oil market. Refined product volumes also declined by 64% to 599,000 metric tonnes, reflecting weakened domestic demand amid challenging macroeconomic conditions.
Despite this, the company’s operational uptime remained strong at 86%, improving production reliability and minimizing losses from deferred output.
Oando’s strong showing is mirrored by other indigenous players capitalizing on the IOC divestment wave. Seplat posted a ₦1.65 trillion revenue for 2024 — a 137% increase from 2023 — while Aradel recorded ₦581.2 billion, up 162% year-on-year.
These developments signal a major power shift in Nigeria’s energy landscape, with local firms leveraging their contextual expertise and operational agility to efficiently manage onshore and shallow water assets — areas where IOCs previously struggled with community and security challenges.
This trend is expected to deliver broader economic benefits, including job creation, local capacity building, and improved government revenue, as funds that were once repatriated now stay within the domestic economy.
Oando also recorded notable progress in its clean energy and sustainability initiatives. Its electric mass transit program clocked over 121,000 kilometres, transported more than 205,000 passengers, displaced 163,546 kilograms of CO₂ emissions, and saved over 60,000 litres of diesel by year-end 2024.
Other milestones included signing Memoranda of Understanding (MoUs) with Cross River and Edo States for wind power projects and launching a geothermal feasibility study with the Nigerian National Petroleum Company (NNPC), exploring the conversion of aging oil wells into renewable power generation assets.
Outlook: Building on Strong Foundations in 2025
Looking ahead, Oando is projecting a 2025 production guidance of 30,000–40,000 boepd, as it begins to fully optimize its newly expanded portfolio. This aligns with the company’s long-term vision to hit 100,000 barrels per day and 1.5 trillion cubic feet of gas by 2029.
“Our focus in 2025 will be execution,” said Tinubu. “We will pursue rig-less interventions, well workovers, and aggressive drilling to boost production. At the same time, we’re implementing a new security framework to tackle oil theft, and taking steps to restructure our balance sheet, cut costs, and integrate advanced technologies across our operations.”
Amid volatile global oil price forecasts — with projections ranging from $58 to $74 per barrel in 2025 — Oando says it remains committed to navigating uncertainty with innovation and operational excellence. JP Morgan and the U.S. Energy Information Administration both forecast a gradual decline in oil prices, citing rising supply and slowing demand.
Nonetheless, with momentum on its side and a reinforced position in Nigeria’s energy value chain, Oando appears poised for a strong 2025, aiming to deliver enhanced value to shareholders while shaping the future of Africa’s energy transition.
