Oando Grows Revenue by 51% to N2.03 Trillion  in H1 2024

Kayode Tokede

Oando Plc, yesterday, announced its unaudited results for the half year (H1) period ended June 30, 2024 with about N2.03 trillion in revenue, an increase of 51 per cent from N1.35 trillion reported in H1 2023.
Nigeria’s leading indigenous energy group, listed on both Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange (JSE), announced N62.6 trillion profit after tax in H1 2024, from N112.4 billion reported in H1 2023.
The release of H1 2024 result and accounts came as the company resumed trading on the NGX, along with the publication of its 2023 Financial Year End (FYE) audited reports.
Following the performance set in its audited 2023 results, Oando continued to show impressive results across its key financial metrics.
Speaking on the H1 2024 performance, Group Chief Executive, Oando, Mr.  Wale Tinubu, in a statement, said, “In the first half of 2024, we delivered a profit after tax of N62.6 billion, despite persistent challenges occasioned by sabotage and theft across our assets in the Niger Delta, which led to frequent shut-ins and impacted production.
“Since assuming operatorship, we have implemented a series of production-enhancing initiatives, which are already yielding results, as demonstrated by a 36 per cent increase in output within the first 30 days following the acquisition.
“As we navigate a dynamic market environment, we are confident in our trajectory toward sustained production growth, positioning us to deliver long-term, sustainable value for all stakeholders.”
Oando’s N2 trillion revenue, in comparison with other industry contemporaries, such as Seplat, which recently declared a N575.1 billion revenue in H1 2024, reinforces the company’s resilience in spite of continued security challenges faced by all operators in the Niger Delta region.
The company experienced a decrease in its upstream production due to sabotage activities and a shut in of wells for necessary repairs. Undeterred by this, Oando averaged 5,790 barrels per day (bbls/day) of crude oil and 18,286 barrels of oil equivalent per day (boe/day) of natural gas. Along with its performance with natural gas liquids (NGLs), the company averaged a consolidated production capacity of 24,389 boe/day in H1 2024.
The statement said Oando set its sights on the future with its recent status as an operator following its acquisition of Nigerian Agip Oil Company (NAOC) in August for $783million.
Following the landmark purchase, the company had since established a production-war room to expedite production ramp-up and address operational inefficiencies. This initiative was part of a broader integration and efficiency enhancement process aimed at seamlessly integrating NAOC’s assets into Oando’s existing business portfolio and aligning operational standards.
Tinubu stated that the company had already begun to witness results of its efforts as evident in the 36 per cent increase in output within the first 30 days following the acquisition and control of the production assets.
The future appears promising for the indigenous energy company, with global oil prices projected to average $89/b for the remainder of 2024 and $91/b in Q1 2025, according to the US Energy Information Administration (EIA).
EIA also predicted global consumption to reach around 102.91 million bpd in 2024, driven by increased global demand for oil and liquid fuels.
Oando said through its focus on operational efficiency and production optimisation, it was well-positioned to capitalise on the favourable market conditions and deliver long-term sustainable value to its stakeholders.