By Susan Olalere 
Oando PLC, a major Nigerian energy company, shared impressive financial results for 2023. After facing challenges in recent years, Oando saw a remarkable recovery, posting a profit of N60.3 billion for the year. This turnaround is a huge leap from the company’s N81.2 billion loss in 2022. Here’s a concise breakdown of how they achieved these results.
Production and Growth in Numbers
Oando increased its production across key energy resources:
– Total Production Up by 12%: Oando produced an average of 23,258 barrels per day in 2023, an increase from 20,703 barrels daily in 2022.
– Oil and Gas Output Grows: Crude oil production increased by 26%, with natural gas production up by 10%.
– Trading Success: The company also expanded its crude oil trading, selling 32.8 million barrels in 2023 – a 50% jump from the previous year.
Revenue and Profit Boost
Oando’s revenue rose to N2.9 trillion in 2023, a 43% increase from the N1.9 trillion reported in 2022. This strong revenue was fueled by more trading activities and a favourable exchange rate environment. Additionally, the company’s operating profit skyrocketed, up by 961%, reaching N218.3 billion.
Debt and Financial Strategy
In 2023, Oando took steps to reduce its debt, cutting upstream borrowings by 23%. This move aimed to strengthen the company’s financial position while balancing the rising costs associated with a fluctuating Naira.
CEO’s Perspective on Success and Strategy
Oando’s Group Chief Executive, Wale Tinubu, spoke positively about the company’s year. He noted that despite challenges like security issues and pipeline vandalism in the Niger Delta, the company managed to thrive. “Achieving a profit after tax of N60 billion, in the face of these challenges, highlights the strength of our partnerships and our commitment to growth,” he said. Tinubu highlighted that the acquisition of Nigerian Agip Oil Company (NAOC) added valuable resources and infrastructure to Oando, marking a key step in the company’s long-term plan.
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