Oando Plc, Nigeria’s leading integrated energy company, has reported a pre-tax profit of N47.7 billion for the 2024 financial year, according to its unaudited financial statement released on the Nigerian Exchange on January 30, 2025.
This represents a 53.6% decline from the N102.9 billion pre-tax profit recorded in 2023. However, the company posted a remarkable Q4 2024 recovery, reporting a pre-tax profit of N16.6 billion, bouncing back from a N29.5 billion loss in the same quarter of 2023.
Despite the decline in pre-tax profit, Oando recorded a 44.86% year-over-year revenue surge, reaching N4.1 trillion, up from N2.8 trillion in 2023. This performance was largely driven by its Supply and Trading segment, which contributed 89.73% of total earnings through crude oil, refined petroleum, and unrefined petroleum product sales. The company’s financial performance reflects a period of rapid revenue growth, asset expansion, and operational resilience, despite the volatile global energy market and increasing costs.
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Financial Performance and Key Figures
Oando’s total revenue soared to N4.1 trillion, reflecting a strong 44.86% year-over-year growth. The cost of sales increased by 39.09% to N3.8 trillion, driven by inflation and currency devaluation, but gross profit surged by 232.31% to N282.5 billion, demonstrating improved operational efficiency. Other operating income declined slightly by 12.56% to N349.7 billion, with foreign exchange gains contributing 91.04%.
Administrative expenses rose by 54.08% to N402.6 billion, indicating higher operational costs. Finance costs also soared by 74.04% to N232.1 billion, driven by high interest rates and debt servicing obligations. However, finance income jumped by 245.77% to N58.4 billion, helping to offset some of the pressure from rising costs. The company’s post-tax profit for 2024 stood at N65.4 billion, representing an 8.65% increase from the N60.2 billion recorded in 2023.
Q4 2024 Recovery and Growth Trajectory
Oando’s performance in the fourth quarter of 2024 was a major turnaround, posting an N16.6 billion pre-tax profit, compared to a N29.5 billion loss in Q4 2023. This recovery was driven by higher crude oil prices, increased trading volumes, and improved foreign exchange management.
The company’s total assets expanded significantly, rising from N2.6 trillion in 2023 to N7.5 trillion in 2024. Non-current assets grew from N1.8 trillion to N3.8 trillion, with property, plant, and equipment comprising 53.13% of total non-current assets. Intangible assets accounted for 33.18%, while total current assets increased to N3.6 trillion, up from N815.5 billion in 2023.
The company’s revenue dominance continues to be fueled by its Supply & Trading business, which accounted for nearly 90% of total earnings. Oando is actively expanding its trading footprint across Africa, positioning itself as a leader in petroleum product distribution.
Its Exploration & Production segment, which generated N414.1 billion, remains a key driver of future profitability, with the company focusing on high-margin oilfields to maximize returns. The company is also working on reducing its debt burden and optimizing costs to improve cash flow efficiency while exploring strategic refinancing to lower finance costs.
In line with global trends, Oando is also investing in renewable energy and sustainability projects, particularly in gas infrastructure and clean energy. These investments are expected to position the company for long-term growth as the global energy industry evolves.
Can Oando Sustain Its Rapid Growth?
Oando’s 2024 financial results highlight a company in expansion mode, with record-breaking revenue, strong asset growth, and a Q4 turnaround. However, rising administrative expenses, finance costs, and market uncertainties remain challenges.
Moving forward, analysts expect the company’s performance to depend on crude oil price fluctuations, Nigeria’s foreign exchange policies, and its ability to restructure debt and expand its market presence.