Oando: NOAC acquisition raised revenue to N4.1trn in 2024

Oando Plc says its revenue grew by 45 percent to N4.1 trillion in 2024, compared to N2.9 trillion recorded in 2023.

The oil company, in a statement on its full-year 2024 financials on Monday, said it also recorded a profit after tax (PAT) of N65.5 billion last year.

Oando also said the production for the twelve months ended December 31, 2024, averaged 23,911 barrels of oil equivalent per day (boe/d) – up from the 23,258 boe/d achieved in 2023. 

The company said the growth was primarily driven by the “acquisition of an additional 20 percent stake in the Nigerian Agip Oil Company (NAOC)  JV in Q4, partially offset by production disruptions due to shut-in wells resulting from sabotage activities”.

Also, Oando said it incurred $18.1 million in capital expenditures related to the development of oil and gas assets and exploration and evaluation activities. compared to $52.3 million in 2023.

Speaking on the results, Wale Tinubu, group chief executive of Oando Plc, said 2024 was a year of transformation for the company.

“The key highlight being our successful acquisition and subsequent integration of NAOC Ltd, which significantly enhanced our production capacity, attaining peak operated production of 103,206 boepd and net entitlements of 45,000 boepd,” Tinubu said.

“Despite a challenging operating environment, we achieved a 45% increase in revenue to ₦4.1 trillion, reflecting the strength of our business model, and a 9% rise in profit after tax to ₦65.5 billion, notwithstanding the costs associated with the onboarding of NAOC.” 

Speaking further, Tinubu said in 2025, the company’s priority will be to “drive cost optimisation, operational efficiency, streamline processes, enhance procurement, and leverage technology to improve productivity across our operations”. 

“In parallel, we will intensify efforts to boost production through the dual approach of rig-less and workover initiatives while executing an aggressive drilling program across three rig lines,” he said.

“Simultaneously, in collaboration with other stakeholders, we are proactively tackling above-ground security challenges by implementing a revamped security framework that integrates advanced surveillance technology and intelligence-driven initiatives to curb the perennial, unnecessary, and unjustifiable theft of oil to ensure the long-term integrity of our vast network.

“As we look ahead to an exciting and successful 2025, we recognize that achieving our goals requires the unwavering support of our host communities and partners. 

“Through extensive engagement, we will foster a collaborative ecosystem that not only secures our operations but also drives shared prosperity and sustainable development for all.”

Tinubu also said as the company prepares for its 2025 targets, it is bolstered by optimistic oil demand predictions.