Oando Plc has reported a 78.9% increase in revenues to N3.5 trillion in its unaudited 2023 full-year results.
This disclosure was made in the company’s financial report filed with NGX on Friday.
This significant figure is a result of higher sales volumes, in addition to foreign exchange gains related to crude oil earnings.
The company recorded a profit after tax of N74.7 billion, compared to N81.2 billion posted in the previous year.
It is expected that this increase in earnings will greatly support Oando’s aspirations to purchase all of the shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
This development implies that by year’s end, Oando Plc will be at par with its counterparts in terms of timely reporting, which will boost investor and shareholder confidence about the company’s present situation and future potential.
Key Highlights – 2023 vs 2022
Revenue: N3.4 trillion vs N1.9 trillion, +78.9% YoY
Gross profit: N77.0 billion vs N78.6 billion, -2.0% YoY
Operating income: N214.5 billion vs N20.6 billion, +941.2% YoY
Profit/(loss) before income tax: N104.1 billion vs (N61.8 billion), +268.4% YoY
Income tax expense: N29.4 billion vs N19.4 billion, +51.4% YoY
Total Assets: N3.14 trillion vs N1.25 trillion
The company’s finances have improved as a result of this profit, contrary to the previous year, when it declared an after-tax loss.
In his remarks, the Group Chief Executive of Oando PLC, Wale Tinubu said “Despite persistent pipeline vandalism across the Niger Delta, which continues to hinder crude production, we achieved a profit after tax of N74.7 billion in 2023. This success was largely driven by increased trading volumes due to our strategic global partnerships and net foreign exchange gains on the group’s foreign currency-denominated assets, in contrast to previous losses on our foreign currency-denominated liabilities.”
Mr. Tinubu also stated that the milestone signing of the Sale and Purchase Agreement with Eni for the acquisition of 100% of the shares of NAOC Ltd marked a pivotal moment for the company highlighting that it is expected to “unlock substantial synergies” in the near future.
Commenting on the company’s strategic focus for the future, Tinubu said, “Having weathered the storm of recent years, our latest results provide a foundation for us to consolidate and build for the future. With our planned acquisition of NAOC, we are positioned to take full operatorship and drive up outputs, value, and efficiencies. Moreover, our foray into and leadership in clean energy expand our footprint as a fully integrated energy company, with our feet firmly planted in today’s realities and the possibilities of the future.”
