Oando reports 44% decline in profit to N62.6bn
Oando Plc announced its unaudited results for the half year (H1) period ended June 30, 2024 with about N62.6billion, a decline of 44per cent from N112.4 billion reported in H1 2023.
The leading indigenous energy group listed on both Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange (JSE), announced N2.03trillion revenue in H1 2024, representing 51 per cent increase from N1.3 trillion reported in H1 2023.
Oando’s N2 trillion revenue in comparison with other industry contemporaries such as Seplat, who 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 the necessary repairs. Undeterred by this, Oando averaged 5,790 bbls/day of Crude Oil and 18,286 boe/day of Natural Gas. These along with its performance with NGLs (natural gas liquids), the company averaged a consolidated production capacity of 24,389 boe/day in H1 2024.
Following the performance set in its audited 2023 results, Oando continues 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 36per 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 sets 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 this landmark purchase, the company has since established a production-war room to expedite production ramp-up and address operational inefficiencies. This initiative is 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.
