Oando Reports 36% Revenue Growth to N3.2 Trillion in Nine-Month 2024 Results

 Oando Reports 36% Revenue Growth to N3.2 Trillion in Nine-Month 2024 Results

In a remarkable financial performance, Oando PLC, Nigeria's leading indigenous energy company, has announced a 36% growth in revenue for the nine months ending September 30, 2024. The company’s revenue reached an impressive N3.2 trillion, up from N2.3 trillion in the same period of the previous year.

Key Financial Performance

Oando’s revenue growth marks a significant achievement, reflecting its continued strength and resilience in the face of challenging market conditions. However, despite this surge in revenue, the company reported a decrease in its Profit After Tax (PAT), which stood at N76.3 billion—down from N110.2 billion during the same period last year.

The decrease in PAT was largely attributed to various external factors, including pipeline vandalism, theft-related activities, and ongoing foreign exchange volatility.

Operational Performance Breakdown

While Oando’s financials show positive growth, some operational challenges were evident. The company reported a 5% decline in average production, dropping from 21,529 barrels of oil equivalent per day (boepd) in 2023 to 20,560 boepd in 2024. This decrease was due to temporary shutdowns caused by sabotage and theft, particularly in the Niger Delta region.

In terms of trading volumes, the company saw a significant dip in its crude oil and refined products trading. Crude oil volumes fell by 47% to 16.7 million barrels, and refined products were down by 56%, totaling 599,929 metric tons, compared to 1.36 million metric tons in 2023.

Despite these challenges, Oando continues to make strides in improving its operational performance. The company’s acquisition of Nigerian Agip Oil Company (NAOC) has proven successful, with production increasing by 40%. From 22,000 boepd before the acquisition, Oando has now achieved a production rate of 30,675 boepd, showcasing the transformative impact of strategic acquisitions and operational improvements.

Management's Perspective on the Results

Wale Tinubu, the Group Chief Executive of Oando PLC, expressed his satisfaction with the company's results despite the various challenges. He highlighted the significant growth in revenue, which reached N3.2 trillion, and emphasized the company’s resilience amid issues such as pipeline sabotage, theft, and volatile foreign exchange rates.

“We are encouraged by the 36% increase in revenue, which is a testament to the strength of our operations and the successful implementation of our growth strategies,” said Tinubu. He added, “Our ability to drive operational efficiencies and navigate through external hurdles reaffirms our commitment to delivering value to our stakeholders.”

Strategic Outlook for the Future

Looking ahead, Oando PLC remains optimistic about its future prospects. With a focus on maximizing the value of its expanded portfolio, particularly in the upstream sector, the company plans to continue its strategic initiatives aimed at enhancing operational efficiency and increasing production capacity.

Oando’s management is also keen on ensuring that its growth trajectory continues despite the challenges posed by the current operating environment. The company’s efforts to expand its footprint through acquisitions and investments in operational improvements are expected to drive further revenue and profitability in the coming months.

Oando’s 2024 financial results reflect a solid performance driven by substantial revenue growth, strategic acquisitions, and operational enhancements. However, the company faces persistent challenges, particularly in the areas of production and trading volumes. Despite this, Oando’s management is focused on ensuring long-term growth and sustainability.

As the company continues to navigate through external challenges and capitalize on its strategic initiatives, Oando PLC remains committed to delivering long-term value to its shareholders, investors, and stakeholders. The company’s impressive revenue growth is a clear indication of its resilience and determination to thrive in a competitive and volatile market.

For more detailed information on Oando's performance, refer to the company's official press release and updates on their website.