Oando Announces N60.3 Billion Profit for 2023 Audited Financials

*Wale Tinubu says feat achieved in spite of operational issues in N’Delta 

*Declares firm now focused on ramping up production with NAOC’s acquisition 

*Oil company to join global energy contemporaries at African Energy Week

Emmanuel Addeh in Abuja

Leading energy solutions company Oando Plc at the weekend reported a profit after tax of N60.3 billion in its audited financials for the full year ended 2023, a substantial improvement from its 2022 financial performance.
The company’s financial performance for the year ended December 31, 2023, was marked by other noteworthy developments as the company recorded a 43 per cent increase in revenue, reaching N2.9 trillion compared to N1.9 trillion in 2022.


In a statement, Oando said it achieved a remarkable turnaround, transitioning from a loss in 2022 to a profit-after-tax of N60.3 billion in 2023, a 961 per cent increase in its operating profits despite the 24 per cent reduction in the realised oil price ($83.15/bbl in 2023 compared to $109.55/bbl in 2022).
“This reduction was consistent in gas prices as the value fell from $14.74/bbl in 2022 to $12.19/bbl in 2023; and in Natural Gas Liquids (NGL) prices with a similar decline from $6.23/boe in 2022 to $4.87/boe in 2023.
“Additionally, the company reduced its upstream borrowings by 23 per cent, from $635.6 million in 2022 to $488.9 million in 2023,” the oil firm added.


Commenting on the results, Wale Tinubu, Group Chief Executive, Oando Plc, said: “Despite the operational hurdles occasioned by security breaches and persistent pipeline vandalism in the Niger Delta, we achieved a profit after tax of N60 billion, bolstered by the strength of our global trading alliances, a 12 per cent increase in total production, and favourable exchange gains from our foreign currency denominated assets.
“Our recently completed transformational acquisition of NAOC Ltd is a pivotal moment for the company due to the expansive reserves and vast infrastructure network.


“Following our 2014 acquisition of ConocoPhillips’s Nigerian unit, this transaction was the next phase in our long-term strategy to increase our reserves and production capacity by leveraging the exit of the International Oil Companies (IOCs) whilst securing operational control of the assets.
“Our immediate focus now shifts to a seamless integration and execution of initiatives towards achieving a marked increase in production. We are confident about the opportunities this platform provides and are committed to delivering sustainable value to all stakeholders.”


Despite persistent operational security challenges in the Niger Delta, Oando said it  reached 23,258 bpd in 2023 compared to 20,703 bpd in 2022.
Expanding on the performance of its production portfolio, Oando said it averaged a daily production of 6,211 bbls/day, making a 26 per cent increase to its 4,939 bbls/day in 2022.
Consistent with the improved performance, it averaged 16,808 boe/day of natural gas, 10 per cent better than 15,292 boe/day of natural gas in 2022.


The company cited improved operations and repairs of shut-in wells offset by persistent sabotage activities as a reason for the production increase.
According to Reuters, the decline in global oil prices in 2023 was because of a tumultuous year of trading marked by geopolitical turmoil and concerns about the oil output levels of major global producers.
As stated in the press release published on the company’s website, the operating profits increase was “driven by the increase in revenue and a significant increase in other operating income, largely due to foreign exchange gains on the group’s US dollar-denominated monetary assets.


This, it said, was despite an increase in administrative expenses primarily from exchange losses from the impact of the Naira devaluation on our foreign currency-denominated liabilities.
“With this solid financial performance, Oando is well-positioned to capitalise on the opportunities presented by the energy sector, building on the momentum generated by its $783 million acquisition of NAOC in August 2024.
“The acquisition doubled the company’s total reserves to 1.0 billion barrels of boe from 505.6 million boe based on 2022 reserves estimates. With its new status as an operator, Oando is better positioned to control its destiny by deploying its acquired assets to deliver even better returns to its shareholders,” Oando said.


Also, with the release of its 2023 audited financial statements, the company stressed that it is bringing its reporting obligations to date, and it is expected that its recent shares trading suspension will be lifted, allowing investors to benefit.
“This, in tandem with its record share performance on the Nigerian Stock Exchange (NGX), with its share price on an upward trajectory, specifically growing by 127 per cent following its acquisition of NAOC, are all signs of a company on an upward swing and one to watch,” the company stated.


Meanwhile, Oando is set to participate as a Diamond Sponsor at African Energy Week (AEW), one of the most prominent conferences in the African energy industry.
Themed: “Invest in African Energies: Energy Growth Through an Enabling Environment”, the 2024 edition of AEW is scheduled to commence today, November 4 until November 8, 2024, at the Cape Town International Convention Centre (CTICC) in Cape Town, South Africa.
AEW, organised by the African Energy Chamber, is an interactive conference, exhibition and networking event featuring panel discussions, investor forums, industry summits, and one-on-one meetings, all aimed at reshaping the trajectory of Africa’s energy development.


The annual event brings together African energy leaders, global investors, and key decision-makers across the public and private sectors for four days of intensive dialogue on the future of Africa’s energy industry.
According to a statement from the oil firm, the recent wave of divestments by oil and gas majors in Nigeria have created opportunities for indigenous companies to expand their portfolios and market presence.
 Oando said it leads this effort, following its recent acquisition of  NAOC; consolidating both entities into Oando Energy Resources Nigeria Limited (OERNL).


Group Chief Executive, Wale Tinubu, is expected to join industry heavyweights such as Chevron, Nigeria LNG Company (NLNG), Kosmos Energy, Seplat,  Vaalco Energy, Shearwater, among others, as well as African ministers and regulators to share insights on the strategies required to reshape and advance the continent’s energy industry for the betterment of Africa and her people.


Wale Tinubu will be delivering a keynote address at the opening ceremony titled: ‘’Transforming Africa’s Energy Landscape through Strategic M&As’’ and  will delve into Oando’s strategic vision for the future of the African energy sector, highlighting the role of strategic mergers and acquisitions in driving growth and innovation.
Executive Director, Oando and Managing Director, OERNL, Dr. Ainojie Irune, will also be sharing his insights at a fireside chat and panel discussion at the Upstream E&P Forum.
The panel session, titled: “Opportunities with Nigerian Independent Operators” will bring together Nigeria’s leading independent operators to discuss the importance of indigenous ownership and their plans for the coming years.
The discussions will focus on partnership opportunities, operational efficiency and innovation, technical skills and local capacity development in the African energy sector.

Leveraging his insights on the financing architecture of Oando’s recent acquisition of NAOC, Adeola Ogunsemi, Chief Financial Officer, Oando PLC, will join the Energy Finance Summit’s panel discussion on “Spotlight on African Mergers & Acquistions”.

Other Executive speakers from the company include recently appointed President/CEO, Oando Clean Energy (OCEL), Ademola Ogunbanjo who will be speaking on opportunities and challenges to e-Mobility adoption in Africa, using the company’s experience from its ongoing sustainable transport initiative with the Lagos Ministry of Transportation, and Lagos Metropolitan Area Transport Authority (LAMATA) as a case study.

Additionally, Ayotola Jagun, Chief Compliance Officer and Company Secretary, Oando PLC, will participate in a panel on: “ESG Financing in the African Energy Sector” to explore the role of Environmental, Social, and Governance (ESG) in attracting investment, enhancing corporate reputation, and ensuring long-term sustainability.

Other AEW attendees who will be contributing to engaging discourse include: Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil); Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas); Omar Farouk Ibrahim, Secretary General, African Petroleum Producers’ Organisation (APPO), among others.

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