Oando Plc has announced a profit after tax of N60.3 billion in its audited financials for the full year ended 2023, transitioning from a loss of N81.23 billion in 2022.
The Group Chief Executive of Oando, Wale Tinubu, announced this in a statement on Monday, November 4, 2024.
Tinubu disclosed that the company also recorded 43 per cent increase in revenue, reaching N2.9 trillion, compared to N1.9 trillion in 2022.
Tinubu said Oando achieved 961 per cent increase in its operating profits despite 24 per cent reduction in the realised oil price of 83.15 dollars/bbl in 2023, compared to 109.55 dollars /bbl in 2022.
He added that this reduction was consistent in gas prices, as the value fell from 14.74 dollars/bbl in 2022 to 12.19 dollars/bbl in 2023.
According to him, the NGL prices of the energy company also declined from 6.23 dollars/boe in 2022 to 4.87 dollars/boe in 2023.
Tinubu stated the company reduced its upstream borrowings by 23 per cent, from 635.6 million dollars in 2022 to 488.9 million dollars in 2023.
Tinubu 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.
“This was bolstered by the strength of our global trading alliances, increase of 12 per cent in total production, and favourable exchange gains from our foreign currency-denominated assets.
“Our recently completed transformational acquisition of NAOC Limited 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, whilst securing operational control of the assets.”
According to him, the energy firm’s immediate focus has shifted to seamless integration and execution of initiatives towards achieving a marked increase in production.
The Oando boss further expressed confidence in the opportunities the company provides and its commitment to delivering sustainable value to all stakeholders.
Tinubu noted that despite persistent operational security challenges in the Niger Delta, Oando achieved 12 per cent increase in total production, reaching 23,258 boepd in 2023 compared to 20,703 boepd in 2022.
Expanding on the performance of its production portfolio, he said Oando averaged a daily production of 6,211 bbls/day, making 26 per cent increase to its 4,939 bbls/day in 2022.
Tinubu stated that consistent with the improved performance, the energy company averaged 16,808 boe/day of natural gas, 10 per cent better than 15,292 boe/day of natural gas in 2022.
Tinubu cited improved operations and repairs of shut-in wells offset by persistent sabotage activities as a reason for the production increase.
