Oando Plc Reports N65.5bn Profit as Revenue Surges 45% in 2024

Oando Plc recorded strong financial growth in full-year 2024 as revenue rose by 45% to N4.12 trillion from N2.85 trillion in 2023.

The energy company’s performance was driven by higher crude oil and refined product sales, improved operational efficiency and reduced impairment charges.

Revenue and Profitability Growth

• Revenue from contracts with customers grew by 45% to N4.12 trillion amid higher sales volumes and improved pricing dynamics in the energy sector.
• Cost of sales increased by 39% to N3.84 trillion, compared to N2.76 trillion in 2023.
• Gross profit surged to N282.53 billion, a 232% increase from N85.02 billion in 2023, signaling substantial margin improvement.

Operational Performance and Cost Management

• Other operating income stood at N349.73 billion, down from N399.99 billion in 2023 on a reduction in non-core earnings.
• Reversal of impairment of financial assets amounted to N9.38 billion, compared to N1.43 billion in 2023, indicating improved credit risk management.
• Administrative expenses increased by 54% to N402.69 billion.
• Operating income rose to N220.20 billion, up slightly from N218.31 billion in 2023, showing resilience in core business operations.

Finance Costs and Net Profit Expansion

• Finance costs surged to N232.14 billion, a 74% increase from N133.38 billion in 2023.
• Finance income jumped 246% to N58.45 billion, up from N16.90 billion in 2023, mitigating some of the impact of rising interest expenses.
• Net finance costs widened to N173.69 billion, compared to N116.48 billion in 2023.
• Profit before tax stood at N47.78 billion, down from N102.98 billion in 2023 as higher costs weighed on earnings.
• Income tax expenses amounted to N17.71 billion, compared to a tax charge of N42.70 billion in 2023, providing a boost to net earnings.
• Net profit after tax climbed to N65.49 billion, up 9% from N60.28 billion in 2023.

Shareholder Value and Earnings Performance

• Profit attributable to equity holders of the parent stood at N65.18 billion, compared to N61.99 billion in 2023.
• Non-controlling interest contribution stood at N314.15 million, a reversal from the N1.72 billion loss recorded in 2023.