Oando PLC, a leading energy solutions company, has announced its audited financial results for the full year ended December 31, 2023, showing a significant turnaround with a profit-after-tax of N60.3 billion.
The company’s financial performance was marked by a 43% increase in revenue, reaching N2.9 trillion compared to N1.9 trillion in 2022. Oando’s operating profits also saw a remarkable 961% increase despite a 24% reduction in realized oil prices.
Oando’s total production increased by 12% to 23,258 boepd in 2023, up from 20,703 boepd in 2022. The company averaged a daily production of 6,211 bbls/day, a 26% increase from 4,939 bbls/day in 2022, and 16,808 boe/day of natural gas, a 10% increase from 15,292 boe/day in 2022.
Wale Tinubu, Group Chief Executive, Oando PLC, attributed the success to the company’s global trading alliances, increased production, and favorable exchange gains.
“Our transformational acquisition of NAOC Ltd is a pivotal moment for the company, expanding our reserves and infrastructure network,” he said.
The acquisition, completed in August 2024, doubled Oando’s total reserves to 1.0 billion barrels of oil equivalent (boe) and positioned the company as an operator, enabling better control over its assets.
Oando’s share price has grown by 399% on the Nigerian Stock Exchange (NGX) following the acquisition, indicating a company on an upward swing.
The company reduced its upstream borrowings by 23%, from US$635.6 million in 2022 to US$488.9 million in 2023. Oando’s financial performance was driven by increased revenue from trading activities, foreign exchange gains on US dollar-denominated assets, improved production volumes, and reduced upstream borrowings.
Despite operational security challenges in the Niger Delta, Oando achieved increased production. The company remains focused on seamless integration and execution of initiatives to boost production.
With its solid financial performance and strategic acquisitions, Oando is well-positioned to capitalize on energy sector opportunities, delivering sustainable value to stakeholders.
Oando PLC’s impressive FYE 2023 results demonstrate the company’s resilience and strategic positioning for growth.
As the energy sector continues to evolve, Oando is well-equipped to capitalize on opportunities, delivering value to stakeholders.
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