Oritsegbubemi Omatseyin
Lagos — Oando Plc has announced its unaudited results for the nine months period ended September 30, 2024
During the nine months period, average oil production was 20,560 barrels of oil equivalent per day, Boe/d, compared to 21,529 boe/day in 2023. In 2024, production consisted of 6,525 barrels per day, bbls/d, of crude oil, 254 bbl/day of natural gas liquids, NGLs, and 13,782 boe/day of natural gas. Production decrease was a result of increased shut-in wells for repairs from sabotage and theft related activities.
Oando incurred $12.7 million on capital expenditure related to the development of oil and gas assets and exploration and evaluation activities, compared to $47.4 million in 2023.
Traded volumes saw a 47% decrease in traded crude oil volumes of 16.7 million bbls compared to 31.6 million bbls in 2023, and a 56% decrease in traded refined petroleum products of 599,929 metric tonnes, MT, compared to 1,365,041 MT in 2023.
Revenue for the period increased by 36%, positively impacted by exchange rate translations and higher crude oil volumes lifted, offset by lower trading volumes, reduced natural gas and NGL volumes, and lower realized sale prices for natural gas and NGL.
Operating profit for the period declined by 23%, primarily driven by an increase in administrative expenses mainly due to foreign exchange losses from the revaluation of payables and borrowings.
Profit-after-Tax for the period was N76.3 billion, a decline of 31%, driven by foreign exchange losses and net finance costs.
Commenting on the results, Wale Tinubu, Group Chief Executive, Oando Plc said: “Our performance for the nine months ended September 30, 2024, reflects our resilience and unwavering focus on delivering value amidst a challenging operating environment. We achieved a 36% increase in revenue to N3.2 trillion and a Profit After Tax of N76.3 billion, despite ongoing pipeline vandalism, sabotage, theft in the Niger Delta, and foreign exchange volatility.
“Since the acquisition of NAOC, we have increased production by 40%, growing from 22,000 boepd pre-acquisition to 30,675 boepd currently. This progress has been driven by the deployment of quick-win strategies that have enhanced operational efficiencies and demonstrated the transformative potential of the acquisition.
“The integration process is advancing smoothly, and our immediate focus remains on executing strategic initiatives to maximize the value of our expanded portfolio. With this stronger foundation and a clear roadmap for growth, we are confident in our ability to deliver long-term, sustainable value to all stakeholders.”
