Oando Plc has reported a strong financial recovery, announcing a profit after tax of N60.3 billion for the fiscal year ending December 31, 2023, marking a notable improvement over its 2022 performance.
This turnaround reflects a 43% rise in revenue to N2.9 trillion from N1.9 trillion in 2022, driven by increased production and foreign exchange gains despite challenges in oil price declines and operating expenses. The company’s operating profits surged by 961%, demonstrating resilience in a volatile market.
Group Chief Executive Wale Tinubu credited the recovery to strategic partnerships, a 12% production increase, and favorable currency exchange gains. He acknowledged ongoing security issues, such as pipeline vandalism in the Niger Delta, yet highlighted Oando’s efforts in reducing upstream debt by 23% from $635.6 million in 2022 to $488.9 million in 2023. Tinubu also emphasized the significance of Oando’s recent acquisition of NAOC Ltd., which has bolstered the company’s reserves and production capabilities. This acquisition aligns with Oando’s strategy of increasing control over domestic assets by capitalizing on international oil companies’ (IOCs) divestments from Nigeria.
Oando also improved its daily production, achieving 23,258 barrels per day (bpd) in 2023, up from 20,703 bpd in 2022. Natural gas production saw a 10% rise, averaging 16,808 boe/day. The company attributed these gains to restored well operations despite persistent sabotage attempts.
Looking forward, Oando is set to participate as a Diamond Sponsor at the upcoming African Energy Week (AEW) in Cape Town. Themed “Invest in African Energies: Energy Growth Through an Enabling Environment”, AEW will convene key figures from Africa’s energy sector, providing a platform for Oando’s leadership, including Tinubu, to discuss strategies like mergers and acquisitions that will shape the continent’s energy future. The company’s participation underscores its commitment to sustainable energy development and reflects its growing prominence in the industry following the recent NAOC acquisition.
Tinubu will deliver a keynote address on transforming Africa’s energy landscape through mergers and acquisitions, while other Oando executives, including Dr. Ainojie Irune, Adeola Ogunsemi, and Ademola Ogunbanjo, will contribute insights on topics such as local ownership, sustainable transportation, and financing in the African energy sector.