Oando Plc recorded improvements in sales and profitability in the immediate past business year with total turnover rising by 43 per cent to N2.9 trillion.
Key extracts of the audited report and accounts of Oando for the year ended December 31, 2023 released at the Nigerian Exchange (NGX) showed that turnover rose from N1.9 trillion in 2022 to N2.9 trillion in 2023.
The company recorded a remarkable turnaround, bouncing back from a net loss of N81.2 billion in 2022 to a net profit of N60.3 billion in 2023.
Operating profit had leapt by 961 per cent from N20.58 billion in 2022 to N218.31 billion in 2023.
Also, the company reduced its upstream borrowings by 23 per cent, from $635.6 million in 2022 to $488.9 million in 2023.
The company attributed improved operations and repairs of shut-in wells offset by persistent sabotage activities as a reason for the production increase.
According to the company, the increase in profitability was driven by the increase in revenue and a significant increase in other operating income, largely due to foreign exchange gains on the group’s dollar-denominated monetary assets. This was despite an increase in administrative expenses primarily from exchange losses from the impact of the naira devaluation on foreign currency-denominated liabilities.
Group Chief Executive Officer, Oando Plc, Mr. Wale Tinubu, said the group’s performance was bolstered by the strength of its global trading alliances, increase in total production, and favourable exchange gains from its foreign currency denominated assets.
“Following our 2014 acquisition of ConocoPhillips’s Nigerian unit, this transaction was the next phase in our long-term strategy to increase our reserves and production capacity by leveraging the exit of the International Oil Companies whilst securing operational control of the assets.
“Our immediate focus now shifts to a seamless integration and execution of initiatives towards achieving a marked increase in production. We are confident about the opportunities this platform provides and are committed to delivering sustainable value to all stakeholders,” Tinubu said.
