Oando Reports N220bn Profit for 2024

Integrated energy group Oando Plc has posted a profit after tax of N220bn for the 2024 financial year, reflecting a 267 per cent year-on-year increase. The result was contained in its audited financial statement submitted to the Nigerian Exchange.

The company, which is listed on both the Nigerian Exchange and the Johannesburg Stock Exchange, also recorded a 44 per cent growth in revenue, rising from N2.9tn in 2023 to N4.1tn in 2024.

In its upstream operations, Oando reported a three per cent increase in average daily production to 23,727 barrels of oil equivalent per day (boepd). Crude oil output rose by 27 per cent to 7,558 barrels of oil per day (bopd), while natural gas liquids (NGL) and gas production declined by 35 per cent and 5 per cent, respectively.

The company’s 2P (proved plus probable) reserves surged by 95 per cent year-on-year to 983 million barrels of oil equivalent (MMboe), with a 188 per cent reserves replacement ratio. This growth followed the acquisition and integration of Nigerian Agip Oil Company (NAOC), completed in August 2024, which also saw Oando assume operatorship of OMLs 60–63 and increase its working interest from 20 per cent to 40 per cent.

Commenting on the performance, Oando Group Chief Executive, Wale Tinubu, stated:
“2024 was a defining year for Oando, with the successful acquisition and integration of NAOC marking the culmination of a decade-long strategic growth journey. This has significantly deepened our upstream portfolio, doubling both our working interest and 2P reserves.”

The company also maintained an 86 per cent operational uptime, ensuring production reliability and minimising deferred output.

Other indigenous oil and gas firms also saw notable revenue gains amid continued divestments by international oil companies. Seplat recorded a revenue of N1.65tn (a 137 per cent increase), while Aradel posted N581.2bn, marking a 162 per cent rise from the previous year.

In the downstream sector, Oando’s trading arm sold 20.7 million barrels of crude oil in 2024 — a 37 per cent drop compared to 2023, attributed to structural changes in the domestic oil market. Refined product sales also declined sharply by 64 per cent to just over 599 kilometric tonnes, reflecting weakened domestic demand and broader macroeconomic headwinds.

The company’s renewable energy segment continued to progress, particularly in electric mass transit. By the end of 2024, the initiative had covered 121,145km, served over 205,000 passengers, displaced 163,546 kilograms of CO₂ emissions, and saved more than 60,000 litres of diesel.

Additional clean energy efforts included the signing of Memorandums of Understanding with Cross River and Edo States for wind power projects, a geothermal feasibility study in partnership with the NNPC, and investigations into converting mature wells for renewable energy generation.

Looking ahead, Oando has set a production target of 30,000 to 40,000 boepd for 2025. This forms part of its broader post-acquisition optimisation plan and aligns with its four-year strategy to reach a daily production level of 100,000 barrels.