Oando Plc, Nigeria’s leading indigenous energy giant, has recorded a remarkable turnaround in its financial performance for the fiscal year ending December 31, 2023, reporting a Profit After Tax (PAT) of ₦74.7 billion.
This shift to profitability is a substantial recovery from the ₦81.2 billion loss recorded in 2022, underscoring the effectiveness of Oando’s strategic initiatives amidst an uncertain oil and gas landscape. The company’s management has credited the bounce-back to key moves that included broadening partnerships, optimizing operational efficiencies, and combating economic volatility.
Oando’s annual revenue saw an extraordinary increase of 71%, reaching approximately ₦3.4 trillion from ₦1.9 trillion in the prior year, driven by stronger trading activities and favorable foreign exchange gains on crude oil sales. “The growth in revenue is a testament to our resilient and forward-thinking strategies,” stated Wale Tinubu, Group Chief Executive of Oando Plc. “We have maintained a focused approach to harnessing our trading capabilities and strengthening our partnerships.”
Operating profit surged by a notable 941%, rising from ₦20.6 billion in 2022 to ₦214.5 billion this year. This substantial growth reflects not only an increase in sales but also Oando’s prudent cost management approach, which allowed the company to enhance profit margins even in the face of rising costs.
Strengthening global partnerships has allowed the company to boost trading volumes while securing competitive pricing. Additionally, Oando has been pursuing the acquisition of Nigerian Agip Oil Company Limited (NAOC), a move expected to significantly enhance production capacity and deliver operational synergies. The acquisition, once completed, will further cement Oando’s leadership position in Nigeria’s oil and gas market.
The company is also making strides in clean energy, reflecting a strategic pivot toward sustainability. In collaboration with the Lagos State government, Oando has launched electric mass transit buses as part of its commitment to environmentally friendly energy solutions.
Oando reported an increase in crude oil production, achieving an average daily production rate of 6,024 barrels per day (bbls/day) compared to 4,939 bbls/day in 2022. This growth in production demonstrates Oando’s commitment to improving its upstream operations, despite challenges such as pipeline vandalism and theft. Additionally, Oando’s trading operations saw a 50% boost in crude oil volumes, reaching approximately 32.8 million barrels from 21.8 million barrels the previous year.
However, the company experienced a 15% decline in traded refined petroleum products, which totaled around 1,645,535 metric tons (MT) in 2023.
Oando continues to face challenges common in the Nigerian energy sector, with pipeline vandalism and oil theft remaining significant threats to production and overall efficiency. The broader economic environment, marked by inflation and currency volatility, has also affected operational costs. Despite these obstacles, Oando’s leadership remains optimistic. “We have adapted to a challenging environment, ensuring operational excellence while delivering consistent value,” Tinubu noted.
The acquisition of NAOC is anticipated to further expand its production capacity and strengthen its market presence. Tinubu had expressed confidence in the company’s ability to navigate ongoing challenges and capitalize on emerging opportunities in both traditional and renewable energy markets.
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