Oando PLC posted a N74.7 billion profit-after-tax (PAT) in its full year that ended December 31, 2023, reflecting a positive turn in the company’s fortunes in comparison to the preceding year when the company posted a loss after tax.
Within the larger industry context, Oando’s N74.7 billion PAT compares favorably with indigenous peers.
Over the same period under review, Seplat Energy recorded N81.33 billion; Total Energies Nigeria posted a PAT of N12.912 billion while Aradel’s PAT stood at ₦54.2 billion.
Last year, Oando pushed forward with its growth agenda, recording positive highlights, including the signing of a sale and purchase agreement (SPA) with Italian oil major, Eni, to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Limited (NAOC).
Its clean energy arm, Oando Clean Energy Limited (OCEL) launched its electric mass transit buses in partnership with the Lagos State government, signaling that things are beginning to look up for the indigenous giant.
More significantly the release of the company’s FYE2023 results, albAeit unaudited, finally brings the company a step closer to being in line with regulatory requirements for all listed companies. It is an indicator that by the end of this year, the company will be on track with its peers in reporting results thus giving confidence to shareholders and investors in the company’s current state and future.
Although 2023 saw oil and gas companies impacted by spikes in incidents of militancy and sabotage, the Company recorded a 71 per cent increase in its turnover to N3.4 trillion compared to N1.9 trillion in FYE 2022.
Over the last four years, the company has been consistent in recording a positive incline in turnover, in 2020 they announced a turnover of N477.1 billion, 2021 N803.5 billion, 2022 N2 trillion and more recently in 2023 they made N3.4 trillion in turnover.
Commenting on the results, Group Chief Executive, Oando PLC, Wale Tinubu, said: “Despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, we achieved a profit after tax of N74.7 billion in 2023 largely driven by increased trading volumes due to our strategic global partnerships and net foreign exchange gains on the group’s foreign currency denominated assets as against losses on our foreign currency denominated liabilities.
“Furthermore, our milestone signing of the SPA with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd marked a pivotal moment for our organisation and is poised to unlock substantial synergies shortly. Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders.”
