Oando PLC, one of Nigeria’s leading indigenous energy companies, has recorded a 267 percent surge in profit after tax for the 2024 financial year, driven largely by its landmark acquisition of Nigerian Agip Oil Company (NAOC), a former subsidiary of Italian energy firm Eni.
According to the company’s audited financial statements released on Wednesday, Oando posted a profit of ₦220 billion, up from ₦60 billion in 2023. Revenue also rose significantly by 44 percent to ₦4.1 trillion, up from ₦2.9 trillion last year.
Group Chief Executive Officer, Wale Tinubu, attributed the performance to strategic asset consolidation and innovation.
“We delivered a 44 percent revenue increase and a 267 percent rise in profit after tax, occasioned by the intrinsic value of the NAOC acquisition and underscoring the resilience of our business model,” Tinubu said.
Upstream Boost and Reserves Growth
Oando’s acquisition of NAOC deepened its foothold in Nigeria’s upstream oil sector, granting it operatorship of Oil Mining Licenses (OMLs) 60 to 63. The deal increased Oando’s working interest in the assets from 20 percent to 40 percent, and led to a 95 percent rise in reserves to 983 million barrels of oil equivalent.
Daily average production grew to 23,727 barrels of oil equivalent per day (boepd), a 3 percent increase year-on-year. Crude oil output climbed 22 percent to 7,558 barrels per day, though gas and natural gas liquids production dropped 5 percent and 35 percent respectively.
Operational uptime remained high at 86 percent, while the company reported a lost time injury frequency (LTIF) of just 0.05, reflecting over 7.35 million LTI-free hours.
Clean Energy & Sustainability
Oando also made strides in its clean energy portfolio. Its electric mass transit program covered over 121,000 kilometers, transported more than 205,000 passengers, and avoided an estimated 163,500 kg of CO₂ emissions in 2024. The firm plans to expand the fleet with 50 additional electric buses in 2025.
Progress was also made in renewable energy with signed MoUs for 275 megawatts of wind energy projects in Cross River and Edo States. Additionally, it advanced the development of a 1.2-gigawatt solar module assembly plant and launched geothermal feasibility studies in partnership with NNPC.
Trading Realignment & NNPC Prepayments
Despite subdued performance in global trading—crude oil volumes fell 37 percent to 20.7 million barrels, and refined product volumes dropped 64 percent—Oando committed $550 million in crude prepayments under NNPC’s Project Gazelle, bolstering long-term trading security.
Mining and Infrastructure
Beyond energy, Oando deepened its diversification into mining and infrastructure. Fieldwork was completed on lithium, gemstone, and limestone sites. The company also finalized an Environmental and Social Impact Assessment for Nigeria’s first commercial-scale bitumen mine, setting the stage for feasibility studies in 2025.
Governance and Shareholder Actions
In December 2024, Oando implemented a strategic board refresh, appointing a new chairman and independent non-executive directors to boost corporate governance. Shareholders approved the distribution of 1.28 billion ordinary shares, reflecting ongoing efforts to return value.
Looking Ahead: Execution and Growth
With the transformative NAOC acquisition complete, Oando says it will now focus on execution, production scaling, and technological efficiency in 2025. Key targets include:
Boosting production to 30,000–40,000 boepd
Increasing trading volumes to 35 million barrels of crude oil and 1 million metric tonnes of refined products
Achieving 100,000 bopd and 1.5 tcf of gas by 2029
“Our 2025 focus is clear,” Tinubu stated. “We’re entering a new phase, one of execution and delivery… We remain committed to delivering enhanced shareholder returns and sustainable prosperity.”
Oando’s robust results signal renewed confidence in indigenous energy operations and could strengthen its position as a regional energy leader amid Nigeria’s shifting energy and climate landscape.
