Table of Contents
Key Points
- Oando’s 2024 revenue surged 45%, reaching $2.76 billion, driven by increased crude oil volumes, rising gas prices, and favorable exchange rates.
- Despite revenue growth, Oando's profit rose by just 9%, hindered by rising production costs and higher administrative and finance expenses.
- CEO Wale Tinubu aims for cost optimization and enhanced production in 2025, focusing on efficiency, technological advancements, and strategic drilling initiatives.
Oando Plc, one of Nigeria's leading oil companies, continues to strengthen its position in the energy sector under the leadership of Wale Tinubu, the nephew of Nigerian President Bola Ahmed Tinubu. The company saw its revenue surpass $2.7 billion by the end of its 2024 fiscal year, thanks to enhanced production capacity and operational efficiency.
Oando’s revenue jumped by 45 percent in 2024, rising from N2.845 trillion ($1.9 billion) in 2023 to N4.122 trillion ($2.76 billion). This growth was largely driven by higher crude oil volumes, rising gas prices, and favorable exchange rate translations.
Oando’s profit increases despite cost pressure
Despite the impressive revenue boost, the company struggled to control costs, with direct production costs climbing to N3.84 trillion ($2.56 billion). Administrative expenses also increased to N402.7 billion ($269.5 million), and finance costs surged to N232.1 billion ($155.3 million). As a result, profit for the period rose by just 9 percent, reaching N65.5 billion ($43.9 million), up from N60.3 billion ($40.3 million) in 2023.
Wale Tinubu, the CEO of Oando commented on the company’s performance, saying, “2024 was a year of transformation for Oando, the key highlight being our successful acquisition and subsequent integration of NAOC Ltd, which significantly enhanced our production capacity, attaining peak operated production of 103,206 boepd and net entitlements of 45,000 boepd.”
Oando cuts losses, expands operations
Under Wale Tinubu, Oando has evolved into a multinational energy player with a presence across upstream, midstream, and downstream sectors. After rebranding from Unipetrol in 2003, Oando expanded its operations and now holds a dominant position in Nigeria’s energy market. Through Ocean and Oil Development Partners (OODP), a joint venture with Omamofe Boyo, Tinubu holds a 66.67 percent stake in Oando, solidifying his influence in the sector.
Looking ahead, Oando aims to continue expanding production and forming strategic partnerships. The company’s strong financial performance in 2024 also helped reduce its retained loss, which dropped from N506 billion ($338.7 million) at the end of 2023 to N452.2 billion ($302.7 million) by December 31, 2024.
Wale Tinubu sets 2025 focus on efficiency
Tinubu shared his vision for 2025, emphasizing the company’s focus on cost optimization, operational efficiency, and technological advancements. “In 2025, our priority shall be to drive cost optimization, operational efficiency, streamline processes, enhance procurement, and leverage technology to improve productivity across our operations. In parallel, we will intensify efforts to boost production through the dual approach of rig-less and workover initiatives while executing an aggressive drilling program across three rig lines.”
Looking forward to an exciting year, Tinubu concluded, “...we recognize that achieving our goals requires the unwavering support of our host communities and partners. Through extensive engagement, we will foster a collaborative ecosystem that not only secures our operations but also drives shared prosperity and sustainable development for all.”
