Oando Reports 45% Revenue Growth In FY 2024 Results

Oando PLC has announced a 45 percent increase in revenue for the Full Year (FY) 2024, reaching ₦4.1 trillion compared to ₦2.9 trillion in FY 2023.

The company also posted a nine percent rise in profit after tax, amounting to ₦65.5 billion, despite a challenging operating environment.

The company’s strong performance was primarily driven by its acquisition of NAOC Ltd, which significantly boosted production capacity.

Oando recorded peak operated production of 103,206 barrels of oil equivalent per day (boepd), with net entitlements of 45,000 boepd. Group Chief Executive, Mr. Wale Tinubu, described 2024 as a transformational year for Oando, highlighting the successful integration of NAOC Ltd as a key factor in the company’s growth. He noted that despite industry challenges, Oando’s revenue increase reflects the strength of its business model.

Oando’s production for the year averaged 23,911 boe/d, an increase from 23,258 boe/d in 2023. This growth was largely supported by the acquisition of an additional 20 percent stake in the NAOC Joint Venture in Q4 2024, though some gains were offset by production disruptions caused by sabotage-related shut-ins. The company also invested $18.1 million in capital expenditures for the development of oil and gas assets, exploration, and evaluation activities, down from $52.3 million in 2023.

Looking ahead to 2025, Oando plans to prioritise cost optimisation, operational efficiency, and streamlining processes to enhance procurement and leverage technology for improved productivity. The company aims to expand production through a dual approach of rig-less and workover initiatives while executing an aggressive drilling program across three rig lines.

Mr. Tinubu also emphasised the company’s commitment to strengthening asset security by implementing an advanced surveillance framework and intelligence-driven initiatives to tackle oil theft. He stressed that Oando’s continued success would require strong collaboration with host communities and partners to ensure operational security and shared economic benefits.

The company’s growth ambitions align with optimistic global oil demand projections. The United States (US) Energy Information Administration (EIA) forecasts global oil demand to increase by 1.3 million barrels per day (bpd) in 2025, compared to an estimated 0.9 million bpd in 2024. This projected growth signals a positive trajectory for the global oil market.

With this performance, Oando enters 2025 on a solid financial and operational footing. The company has successfully met all regulatory reporting requirements and remains focused on achieving its long-term vision of becoming Africa’s first international oil company (IOC). In leveraging its strong operational capabilities and strategic partnerships, Oando is well-positioned to deliver value to its stakeholders and sustain its upward growth momentum.