Leading Nigerian energy giant, Oando PLC, has made headlines with a massive financial turnaround, reporting a profit after tax of N60.3 billion in its audited financials for 2023. This impressive feat marks a remarkable shift from the company’s 2022 losses, positioning Oando as one of the top performers in Nigeria’s energy sector.
Oando’s revenue surged by 43% to hit N2.9 trillion in 2023, a significant increase from N1.9 trillion in 2022. This growth is coming despite the volatile oil and gas market and the challenging Nigerian economy.
In a year of fluctuating oil prices, Oando’s operating profits skyrocketed by 961%, with a profit-after-tax of N60.3 billion. This success came even as the realized oil price dropped by 24%, from $109.55 per barrel in 2022 to $83.15 per barrel in 2023. Gas prices also fell from $14.74 to $12.19, and Natural Gas Liquids (NGL) prices dipped from $6.23 to $4.87 per barrel. Despite these declines, Oando leveraged its strong operational framework and cost-cutting measures to deliver positive results.
In addition to strong revenue growth, Oando significantly reduced its upstream debt by 23%, from $635.6 million in 2022 to $488.9 million in 2023. This move shows Oando’s commitment to long-term stability.
Against a backdrop of security challenges in the Niger Delta, Oando achieved a 12% increase in total production, reaching 23,258 barrels of oil equivalent per day (boepd) in 2023, up from 20,703 boepd in 2022. This growth was driven by improved operations and repairs of previously shut-in wells, despite facing persistent sabotage activities in the region.
Oando recorded a 26% increase in daily oil production, averaging 6,211 barrels per day compared to 4,939 barrels per day in 2022. Natural gas production also improved, with a 10% boost to 16,808 boe/day, surpassing the previous year’s 15,292 boe/day.
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Wale Tinubu, Group Chief Executive of Oando PLC, expressed confidence in the company’s future trajectory. “Despite the operational hurdles posed by security breaches and pipeline vandalism in the Niger Delta, we achieved a profit after tax of N60 billion, supported by our global trading alliances, a 12% increase in production, and favorable exchange gains from our foreign currency assets,” Tinubu said.
He also highlighted Oando’s recent acquisition of NAOC Ltd, which brings substantial reserves and an extensive infrastructure network to Oando’s portfolio. This acquisition, following Oando’s 2014 purchase of ConocoPhillips’s Nigerian unit, is part of a long-term strategy to increase reserves and production by capitalizing on the exit of International Oil Companies (IOCs) from Nigeria.
“Our immediate focus is on seamlessly integrating these assets and ramping up production. This platform provides tremendous opportunities, and we’re committed to delivering sustainable value to all stakeholders,” Tinubu added.
With this financial turnaround and strategic acquisitions, Oando PLC is poised for sustained growth in Nigeria’s oil and gas industry.
