By Peter Oyenisha
Oando Plc has posted a pre-tax profit of N47.7 billion for the 2024 financial year, according to its latest unaudited report released on January 30, 2025, on the Nigerian Exchange. This marks a drop from the N102.9 billion pre-tax profit reported in 2023.
Despite this decline, the company saw a strong recovery in the fourth quarter of 2024, with a pre-tax profit of N16.6 billion—an impressive rebound from a N29.5 billion loss in the same quarter the previous year.
In terms of revenue, Oando achieved an 87.96% increase in Q4 2024, reaching N932.4 billion compared to N496.1 billion during the same period in 2023.
For the full year, the company’s total revenue soared to N4.1 trillion, a significant 44.86% increase from the N2.8 trillion recorded in 2023. A major driver of this growth was the Supply and Trading segment, which includes the trading of crude, refined, and unrefined petroleum products.
Key Financials for FY 2024
- Revenue: N4.1 trillion (+44.86% YoY)
- Cost of Sales: N3.8 trillion (+39.09% YoY)
- Gross Profit: N282.5 billion (+232.31% YoY)
- Other Operating Income: N349.7 billion (-12.56% YoY)
- Administrative Expenses: N402.6 billion (+54.08% YoY)
- Operating Income: N220.1 billion (+0.87% YoY)
- Finance Cost: N232.1 billion (+74.04% YoY)
- Finance Income: N58.4 billion (+245.77% YoY)
- Pre-tax Profit: N47.7 billion (-53.60% YoY)
- Post-tax Profit: N65.4 billion (+8.65% YoY)
Revenue and Profit Breakdown
Oando’s impressive revenue growth of 44.86% year-on-year reflects the robust performance of its core operations. The Supply & Trading segment, which encompasses crude, refined, and unrefined petroleum products, contributed a dominant 89.73% of total revenue, equaling N3.7 trillion. The Exploration & Production division accounted for 10.11%, with the remaining 0.10% coming from the corporate and others segment.
While the cost of sales increased by 39.09% to N3.8 trillion, gross profit surged dramatically by 232.31%, reaching N282.5 billion from N85 billion in 2023. On the other hand, other operating income saw a slight dip of 12.56%, largely due to a decrease in foreign exchange gains, which now make up 91.04% of the total.
Administrative expenses climbed by 54.08% to N402.6 billion, while operating income saw a marginal rise of 0.87%, reaching N220.1 billion. The company’s finance costs spiked by 74.04%, but finance income experienced an impressive surge of 245.77%, reaching N58.4 billion.
Oando also reported a post-tax profit of N65.4 billion, marking an 8.65% increase compared to the N60.2 billion achieved in 2023.
Asset Growth
Oando’s total assets grew significantly in 2024, reaching N7.5 trillion, up from N2.6 trillion in 2023. Non-current assets rose from N1.8 trillion in 2023 to N3.8 trillion, with property, plant, and equipment making up 53.13% of this total. Meanwhile, total current assets increased to N3.6 trillion from N815.5 billion, driven primarily by trade and other receivables, which constitute 92.68% of current assets.
In summary, Oando’s 2024 financial results demonstrate a remarkable recovery in several areas, despite challenges faced earlier in the year. With substantial growth in revenue and assets, the company has positioned itself for continued success in the coming years.