Projects 40,000boepd output, 50 new electric buses rollout in 2025
Oando Plc, Nigeria’s foremost indigenous energy company listed on the Nigerian Exchange Limited and the Johannesburg Stock Exchange, has announced a profit after tax of N220 billion for the financial year ended December 31, 2024, representing a 267 per cent increase from N60 billion recorded in the previous year.
The performance was bolstered by a 44 per cent increase in revenue to N4.1 trillion, up from N2.9 trillion in 2023, driven by improved upstream output, foreign exchange gains, and the impact of the acquisition of Nigerian Agip Oil Company (NAOC), which was concluded in August 2024 for $754 million.
This was revealed in the company’s audited financial statements released yesterday, authorised by the Group’s Chief Financial Officer, Adeola Ogunsemi, who noted that the 2024 results included four months of contribution from the acquired NAOC assets.
The report noted that Crude oil production rose by 22 per cent to 7,558 barrels per day, while natural gas liquids declined by 35 per cent to 156 barrels per day, and gas production dipped by five per cent to 16,013 boepd. Operational uptime was maintained at 86 per cent, and safety performance remained strong, with over 7.35 million LTI-free hours logged in the year under review.
Speaking on the performance, the Group Chief Executive of Oando Plc, Wale Tinubu, described 2024 as a defining year in the company’s history, marking the culmination of a decade-long strategic drive to scale upstream operations and consolidate its leadership in Nigeria’s energy landscape.
He added that despite a challenging macroeconomic and security environment, the company recorded improvements in operational performance, achieving an average daily production of 23,727 barrels of oil equivalent per day (boepd),a three per cent increase, aided by contributions from the NAOC assets and stabilisation of legacy fields. The 2024 exit rate stood at 36,000 boepd, while 2P reserves rose sharply by 95 per cent year-on-year to 983 million barrels of oil equivalent.
“Our key priorities shall include unlocking synergies from the acquisition, addressing above-ground security risks through the implementation of a revamped security framework aimed at curbing the persistent theft of oil, cost optimisation, balance sheet restructuring, enhancing operational efficiency, and leveraging technology to improve productivity across our operations.
“In our bid to ramp up production towards achieving our target of 100,000 bpd and 1.5 tcf of gas by 2029, we shall pursue a dual-track approach of rig-less interventions and well workovers, complemented by an aggressive drilling program. We are excited by the opportunities that lie ahead and remain committed to delivering enhanced shareholder returns, shared prosperity and maintaining our position as a leading player in Africa’s evolving energy landscape,” he added.
The company traded 20.7 million barrels of crude oil, representing a 37 per cent drop, which it attributed to market realignments. Refined product volumes fell by 64 per cent to 599,000 metric tonnes, as a result of changes in the country’s domestic supply framework.
Oando’s clean energy and sustainability initiatives also made considerable progress in 2024. Its electric mass transit programme covered 121,145 kilometres, transporting over 205,000 passengers and preventing over 163,500 kilograms of carbon dioxide emissions. The company also secured offtake commitments for 5,100 tons of PET per month, signed Memoranda of Understanding for 275 megawatts of wind power projects in Cross River and Edo States, and advanced plans for a 1.2-gigawatt solar module assembly plant through Original Equipment Manufacturer (OEM) engagements.
In partnership with the Nigerian National Petroleum Company (NNPC), it commenced geothermal feasibility studies and completed environmental assessments for what is expected to be Nigeria’s first commercial-scale bitumen mining project.
Also, the company contributed $550 million in crude prepayment to NNPC’s Project Gazelle, which is aimed at strengthening crude supply security, and declared the issuance of 1.28 billion ordinary shares as part of shareholder returns, following approval at its 2024 Annual General Meeting.
Looking ahead, the company has set a production target of between 30,000 and 40,000 boepd in 2025 and plans to trade between 25 and 35 million barrels of crude oil, as well as between 750,000 metric tonnes and one million metric tonnes of refined petroleum products.
In addition to these targets, Oando will, in 2025, roll out 50 new electric buses, in continuation of its commitment to clean mobility and reducing emissions in Nigeria’s urban transport system. The company also announced plans to implement a capital restructuring and liquidity optimisation programme aimed at delivering enhanced shareholder value and reinforcing its financial resilience.
