Oando’s annual profit surges by 265% as higher oil sales boost revenue

Oando Plc reported a 265.2 per cent jump in net profit for last year, according to its audited financial statements released on Wednesday, as increased crude oil sales lifted turnover.

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Revenue for the period rose to N4.1 trillion from N2.8 trillion a year ago, with sales of crude oil from its supply and trading unit accounting for the bulk of that sum.

The results include roughly four months of contribution from Nigerian Agip Oil Company (NAOC), which Oando acquired from Italian multinational oil giant Eni last August for a total consideration of $783 million.

Average daily production stood at 23,727 barrels of oil equivalent per day (boepd), a 3 per cent year-on-year increase, partly supported by NAOC’s contribution.

“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 which has significantly deepened our upstream portfolio, resulting in our assumption of operatorship of the OML 60–63 series,” CEO Wale Tinubu said in a statement.

He noted that the current year will be devoted to unlocking synergies from the acquisition, tackling above-ground security risks and deploying strategies targeted at curtailing oil theft, cost optimisation, balance sheet restructuring and enhancing operational efficiency.

Shares in Oando had appreciated by 6.8 per cent in Lagos as of 12:54 WAT but had shed 4 per cent at about the same time in Johannesburg, where it has a secondary listing, following the news.

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Other operating income advanced to N1.1 trillion from N400 billion a year ago, boosted by a gain on bargain purchase from the fair valuation of the NAOC acquisition “when compared to the total consideration paid” for the asset.

Finance income jumped 179.2 per cent to N44.1 billion, largely boosted by interest income earned on finance leases.

Last month, Oando Trading, a subsidiary of the Oando Group, announced the purchase and lifting of Nigeria’s newest crude oil blend, Obodo, with the Atlantic Spirit tanker from Oando’s fleet executing the first export of the blend.

Profit before tax for the review period leapt to N383.8 billion from N103 billion, while profit after tax jumped to N220.1 billion from N60.3 billion.

The company said it hopes to scale up full-year average production to 30,000-40,000 bpd.