Oando Records 164% Rise in Profit to N210bn in Nine Months

Energy giant Oando Plc has announced a remarkable 164 percent increase in profit, reaching N210 billion for the first nine months of 2024, reflecting a strong recovery and operational efficiency across its oil and gas business segments. The company attributed the impressive performance to higher crude oil prices, improved production output, and strategic cost management initiatives implemented during the period.

According to the company’s unaudited financial statement released on the Nigerian Exchange Group (NGX), Oando’s profit surged from N79.5 billion in the same period of 2023, demonstrating renewed investor confidence and the effectiveness of its business restructuring strategies. The energy firm also recorded significant growth in revenue, driven by increased crude export volumes and stable downstream operations.

The report showed that total revenue rose by 38 percent year-on-year, buoyed by an uptick in crude oil prices in the international market and the steady performance of its upstream and trading divisions. Oando’s management said the improved figures underscored the resilience of its integrated energy model, which enables the company to adapt swiftly to market dynamics.

Commenting on the results, Oando’s Group Chief Executive, Wale Tinubu, expressed satisfaction with the company’s financial rebound, stating that the performance reflected disciplined execution, prudent financial management, and sustained focus on profitability.

“We are pleased with our performance so far this year, which demonstrates the strength of our strategy and our ability to navigate a challenging energy landscape. The significant improvement in our profit is the result of efficiency gains, improved production levels, and higher oil prices,” Tinubu said.

He further explained that Oando had focused on optimizing its assets, strengthening its balance sheet, and increasing operational reliability. He added that despite the volatility in the global oil market, the company remained well-positioned to deliver consistent value to shareholders.

The report highlighted that Oando’s upstream segment—its core exploration and production arm—benefited from increased production at key assets, while its trading and downstream units maintained stable contributions to overall revenue. The company also attributed part of its gains to enhanced supply chain efficiency and better cost control measures.

Tinubu noted that Oando continues to invest in renewable energy and cleaner technologies as part of its long-term sustainability goals. “We remain committed to our energy transition journey. While we continue to strengthen our oil and gas operations, we are also investing in projects that will ensure we remain relevant in the evolving global energy space,” he stated.

He said the company’s focus on innovation and environmental responsibility has positioned it as a leading player in Nigeria’s evolving energy industry, aligning with global efforts toward cleaner and more efficient energy systems.

Analysts in the oil and gas sector have commended Oando’s performance, noting that the company’s recovery reflects a broader industry rebound and the success of ongoing reforms in Nigeria’s energy sector. They observed that Oando’s improved results could boost investor sentiment in the Nigerian equities market, particularly within the energy segment.

Industry watchers also pointed out that the company’s renewed profitability may pave the way for further expansion and strategic partnerships in both upstream and downstream operations.

Financial experts, however, advised Oando to sustain its current growth trajectory by maintaining transparency in its reporting and focusing on risk management strategies to mitigate global price fluctuations.

The company, which has operations across West Africa, continues to play a key role in Nigeria’s petroleum sector, with investments spanning exploration, production, trading, and energy infrastructure. Its strong performance has reinforced its position as one of the leading indigenous energy firms in sub-Saharan Africa.

Oando’s management also assured shareholders that the company remains dedicated to delivering sustainable returns and maintaining sound corporate governance practices. Tinubu reaffirmed that the next phase of growth will focus on consolidating operational gains while exploring new opportunities in the regional energy market.

“We are optimistic about the future. Our performance in the first nine months of 2024 provides a strong foundation for continued growth. We will keep driving operational excellence and strategic investments that will enhance our competitive advantage,” Tinubu concluded.

With its profit climbing to N210 billion, Oando’s nine-month financial report signals renewed stability and a strengthened position in Nigeria’s oil and gas sector, reaffirming its role as a resilient and innovative player committed to powering the nation’s energy future.