Nigerian oil company, Oando Plc, has reported pre-tax revenue of N3.18 trillion for a nine-month period spanning January to September 2024.
This was disclosed in the company’s financial statement for the third quarter of 2024, obtained by Energy in Africa.
The strong performance follows Oando’s recent acquisition of Nigeria Agip Oil Company Ltd (NAOC) from Italian oil giant, Eni, in August 2024. The deal, valued at $783 million, positioned Oando as one of Nigeria’s most valuable oil companies.
The company recorded a 36% year-on-year revenue increase from September 2023 to September 2024. Its revenue grew from N2.3 trillion within the same period last year to N3.1 trillion in the current financial year.
In addition, the financial statement reveals a profit-after-tax of N76.3 billion for the reporting period.
The company attributed its revenue growth to exchange rate translations and higher crude oil volumes lifted.
These gains, however, were partly offset by lower trading volumes, reduced natural gas and NGL volumes, and lower realized sales prices for natural gas and NGL.
CEO’s reaction to the revenue performance
Commenting on the results, Oando’s CEO, Wale Tinubu, highlighted the company’s resilience and commitment to delivering value despite a challenging business environment.
He noted that despite challenges like oil theft and pipeline vandalism, the company has successfully increased crude oil and gas production.
He further explained that production has surged by an impressive 40% since the acquisition of NAOC.
“We achieved a 36% increase in revenue to N3.2 trillion and a Profit After Tax of N76.3 billion, despite ongoing pipeline vandalism, sabotage, theft in the Niger Delta, and foreign exchange volatility.
“Since the acquisition of NAOC, we have increased production by 40%, growing from 22,000 boepd pre-acquisition to 30,675 boepd currently.
“This progress has been driven by the deployment of quick-win strategies that have enhanced operational efficiencies and
demonstrated the transformative potential of the acquisition,” Tinubu said.
Other Details from Report
According to the report, during the nine months ended September 30, 2024, average production was 20,560 boe/day, compared to 21,529 boe/day in 2023.
Furthermore, the analysis shows that Oando’s production consisted of 6,525 bbls/day of crude oil, 254 bbl/day of NGLs, and 13,782 boe/day of natural gas in 2024.
- Moreover, the product decrease was a result of increased shut-in wells for repairs due to sabotage and theft-related activities.
- During the nine months also, the report shows that the firm incurred $12.7 million on capital expenditure related to the development of oil and gas assets and exploration and evaluation activities, compared to $47.4 million in the nine months to September 30, 2023.
- However, the report also shows that operating profit for the period declined by 23%, primarily driven by an increase in administrative expenses, mainly due to foreign exchange losses from the revaluation of payables and borrowings.
Also, the document shows that profit-after-tax for the period was N76.3 billion, a decline of 31%, driven by foreign exchange losses and net finance costs.
