Oando Plc has released its unaudited financial results for the nine-month period ended September 30, 2024, with the report highlighting a 56 per cent year-on-year decline in traded refined petroleum products.
In a statement filed with the NGX, Oando disclosed that it traded 599,929 metric tonnes (MT) of refined petroleum products during Q3 2024, a sharp drop from the 1,365,041 MT recorded during the same period in 2023.
The company’s average production during the nine months ended September 30, 2024, stood at 20,560 barrels of oil equivalent per day (boe/day), slightly lower than the 21,529 boe/day achieved in the corresponding period of 2023.
Production in 2024 included 6,525 barrels per day (bbls/day) of crude oil, 254 bbl/day of natural gas liquids (NGLs), and 13,782 boe/day of natural gas.
The decrease was primarily attributed to increased shut-in wells due to repairs necessitated by sabotage and theft-related activities.
Oando also reported capital expenditure of $12.7m on oil and gas asset development, exploration, and evaluation activities during the period, compared to $47.4m spent in the same timeframe in 2023.
Despite a 36 per cent increase in revenue for the period—driven by favourable exchange rate translations and higher crude oil volumes—the company’s financial performance faced several headwinds.
Lower trading volumes, reduced natural gas and NGL volumes, and weaker realized sale prices for natural gas and NGL offset some of the gains.
Operating profit declined by 23 per cent, largely due to an increase in administrative expenses stemming from foreign exchange losses on revalued payables and borrowings.
Profit-after-tax fell by 31 per cent to N76.3bn, a drop attributed to foreign exchange losses and rising net finance costs.
Commenting on the results, Group Chief Executive, Wale Tinubu, Oando Plc said that the company’s performance for the nine months ended September 30, 2024, reflects its resilience and unwavering focus on delivering value amidst a challenging operating environment.
“We achieved a 36 per cent increase in revenue to N3.2trn and a Profit After Tax of N76.3bn, 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 per cent, 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,” he said.
Oando’s performance reflects the broader challenges facing Nigeria’s energy sector, including operational disruptions and fluctuating global energy markets.