Latest news with #Oando
Zawya
2 days ago
- Business
- Zawya
Oando Posts 172% Growth in Gross Profit in Q1 2025 Financial Report as Crude Oil Production Increases 132%
Oando ( one of Africa's leading indigenous energy solutions providers, has ended the first quarter of the year on a high with the publication of ₦933 billion revenue in its Q1 2025 unaudited results. This performance comes in the wake of its recent release of its 2024 FY Audited Financial Statement, where it reported a 44% year-on-year revenue increase to ₦4.1 trillion compared to ₦2.9 trillion in FY 2023 and a 267% increase in Profit-After-Tax to ₦220 billion. Oando, like a few indigenous oil and gas companies in Nigeria, who keyed into the International Oil Companies (IOCs) divestment of onshore assets, has begun reaping the gains of its acquisition of Nigerian Agip Oil Company (NAOC) from Italian oil giant, Eni. An analysis of Oando's financials shows that the company's turnover grew by 2% year-on-year to ₦933 billion in Q1 2025 compared to ₦915 billion in Q1 2024. Additionally, the company posted a 172% increase of ₦85 billion in Gross Profit in Q1 2025 compared to ₦31 billion in Q1 2024, reflecting stronger E&P margins. In its upstream business, crude oil production rose 132% to 11,369 bopd, gas volumes grew by 56% to 25,185 boepd, and NGL production increased 30% to 1,040 bpd. The company recorded zero lost-time injuries (LTIs) and 12.3 million LTI-free hours, underscoring continued HSE excellence. In addition, the company achieved average daily production of 37,595 boepd (within guidance), up 72% year-on-year, driven by the full consolidation of NAOC assets and well reactivations. The company was awarded operatorship of Block KON 13 in Angola, marking its strategic entry into the Kwanza Basin, Angola and expanding Oando's African upstream footprint. Speaking on the Q1, 2025 financial results, Wale Tinubu CON, Group Chief Executive, Oando PLC remarks 'Q1 2025 marked a strong start to the year for us, with a 72% year-on-year increase in production volumes as a result of the successful integration of the NAOC assets into our portfolio, improved asset reliability and the reactivation of shut-in wells, reflecting early wins from our focus on operational efficiency and disciplined execution. Beyond Nigeria, we have expanded our regional presence with our entry into Angola's Kwanza Basin marking a major milestone in scaling our upstream footprint across Africa. Similarly, being named preferred bidder for the Guaracara Refinery in Trinidad and Tobago demonstrates the strength of our integrated business model, our growing role in the Afro-Caribbean landscape, and a reflection of our evolution into a more geographically diversified energy company.' There is evidence of a trend in the upward financial trajectory in the industry, as Seplat recorded revenues of N1.228 trillion, a 350% increase. Similarly, Aradel reported revenues of ₦199.9 billion, up 97.6%, and Profit after Tax of ₦34.2 billion, up 55.3%. In its downstream trading business, Oando Trading reported six (6) crude oil cargos (5.96 MMbbl) traded in Q1 2025, up from four (4) cargos (4.86 MMbbl) in Q1 2024, driven by stronger offtake execution. In its renewable energy business, Oando Clean Energy (OCEL) recorded 53,941 EV rides in Q1 2025 and 42,779 kg of CO₂ emissions averted through two (2) operational e-buses under the electric mobility programme operating in Lagos. It also successfully published Nigeria's National Wind Resource Capacity Report, identifying state-level wind potential across the country. Speaking on the outlook for 2025, Wale Tinubu CON, commented ' Following a transformative 2024, our priority is to maximize the value of our expanded upstream portfolio through targeted infrastructure upgrades, rig-less well interventions and an extensive drilling programme in the second half of the year. These activities are now enabled by the working capital we have secured, giving us financial flexibility to accelerate execution. We are also taking decisive action to restructure our balance sheet towards restoring financial resilience.' Oando is targeting a full-year production of 30–40 kboepd maintained, driven by a balanced capital programme of three (3) new wells, nine (9) workovers, and six (6) rig-less interventions. The company is also projecting capex of $250–270 million focused on drilling, infrastructure, and ESG projects, with a 20% cost reduction goal. The company has set a trading guidance for its Trading subsidiary of 25 – 35 MMbbl crude oil; 750,000 – 1,000,000 MT refined products. For its renewable energy arm, Oando targets the deployment of 50 electric buses and progress its solar PV module assembly plant toward Final Investment Decision (FID). These plans are strengthened by the company's recent announcement of the successful upsizing of its reserve-based lending ('RBL2') facility to $375 million. This critical financing will significantly improve the Company's ability to achieve its production target of 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet (Bcf) of gas per day by the end of 2029. These Q1 2025 results reinforce the growing momentum among indigenous operators in Nigeria's upstream sector, who are beginning to demonstrate operational efficiency and financial resilience following recent asset acquisitions. With a 2% rise in revenue, a remarkable 172% surge in gross profit to ₦85 billion, and a 72% increase in average daily production, all within guidance, Oando's performance signals not just the viability of the transition from IOC to indigenous ownership, but also the increasing capacity of local players to deliver value and drive long-term growth in Nigeria's energy landscape. Distributed by APO Group on behalf of Oando PLC.
Yahoo
11-06-2025
- Business
- Yahoo
Nigeria's $5bn Aramco loan stalled by oil price dip
Nigeria and Saudi Arabian oil giant Aramco's discussions regarding a $5bn oil-backed loan have hit a snag following a significant drop in crude oil prices, reported Reuters, citing sources. The development has raised concerns among potential banks that were expected to support the agreement. The proposed facility represents Nigeria's largest oil-backed loan to date and Saudi Arabia's first major involvement in the country's financing. However, the recent decline in oil prices, with Brent crude falling around 20% to approximately $65 per barrel, from more than $82 in January, has cast doubt on the size of the deal. Nigerian President Bola Tinubu initiated the loan discussions during a meeting with Saudi Crown Prince Mohammed bin Salman at the Saudi-African Summit in Riyadh last November. The loan is intended to be part of a larger $21.5bn foreign borrowing plan proposed by Tinubu to support the national budget. The drop in oil prices has complicated the negotiations, as Nigeria may require a greater volume of oil to secure the loan. Banks expected to co-fund the loan alongside Aramco have expressed concerns about the reliability of oil delivery, which has slowed the progress of the talks. Gulf banks and at least one African bank are reportedly involved in the discussions, although their identities have not been disclosed. Saudi Aramco, Nigeria's state-owned oil company NNPC, and Nigeria's finance and petroleum ministries have not commented on the ongoing discussions. Nigeria, with a history of utilising and repaying oil-backed loans for various financial needs, would need to back the Aramco loan with at least 100,000 barrels of oil per day (bopd). The country is already using at least 300,000bopd to service existing oil-backed loans, with one such facility anticipated to be repaid this month. Furthermore, the lower oil prices necessitate NNPC to allocate more crude oil to joint venture partners, ranging from international companies such as Shell to local operators like Oando or Seplat, to cover operational costs. "You have to either find more oil, or find a way to renegotiate those deals," mentioned one of the sources. Nigerian trading firm Oando is expected to handle the offtake of the physical cargoes, although the company has not provided any comment. To alleviate the situation, NNPC is striving to boost output, and President Tinubu has issued an executive order to reduce production costs and increase revenue from oil and gas projects, potentially freeing up more funds from each barrel of oil. "Nigeria's $5bn Aramco loan stalled by oil price dip" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Zawya
05-06-2025
- Business
- Zawya
Nigeria: NGX market cap hits $45bln as bulls persist
Nigerian equities market extended previous day's sentiment as price uptick in Oando Plc and 30 others pushed the overall capitalisation to cross N71 trillion. The All-Share Index rose by 354.25 per cent, representing a gain of 0.32 per cent, to close at 112,781.73 points. Similarly, the overall market capitalisation value gained N233 billion to close at N71.118 trillion. The market's positive performance was driven by price appreciation in large and medium-capitalised stocks which are; Oando, PZ Cussons Nigeria, Guaranty Trust Holding Company (GTCO), May & Baker Nigeria, and First Holdco. Investor sentiment, as measured by market breadth closed positive as 32 stocks gained, while 21 lost. Oando recorded the highest price gain of 10 per cent to close at N51.70, per share. Royal Exchange followed with a gain of 8.64 per cent to close at 88 kobo, while Legend Internet was up by 7.27 per cent to close at N5.90, per share. Lasaco Assurance appreciated by 6.67 per cent to close at N3.20, while May & Baker Nigeria gained 6.56 per cent to close at N13.80, per share. On the other hand, NCR Nigeria led the losers' chart by 9.89 per cent to close at N5.92, per share. ABC Transports followed with a decline of 9.83 per cent to close at N2.95, while Meyer depreciated by 9.63 per cent to close at N8.45, per share. Academy Press lost 9.58 per cent to close at N4.53, while Livestock Feeds shed 6.77 per cent to close at N8.95, per share. The total volume traded fell by 1.86 per cent to 611.527 million units, valued at N16.680 billion, and exchanged in 13,682 deals. Transactions in the shares of Fidelity Bank topped the activity chart with 93.467 million shares valued at N1.776 billion. GTCO followed with 87.204 million shares worth N5.952 billion, while Royal Exchange traded 73.079 million shares valued at N64.920 million. United Bank for Africa (UBA) traded 57.114 million shares valued at N1.980 billion, while Access Holdings transacted 38.760 million shares worth N854.588 million. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
05-06-2025
- Business
- Zawya
Oando Deepens Upstream Investment With $375m Financing Deal
Oando PLC ( Nigeria's leading indigenous energy solutions company with primary and secondary listings on the Nigerian and Johannesburg Stock Exchanges, today announced the successful upsizing of its Reserve Based Lending (RBL2) facility to $375 million. The refinancing, led by the African Export-Import Bank (Afreximbank) with the support of Mercuria, extends the final maturity date of the facility to January 30, 2029. In recent years, financing arrangements for the acquisition, development, and operation of oil and gas assets have commonly been structured as Reserve-Based Loans (RBLs). Under this model, the amount a borrower, in this instance Oando, can access is directly tied to the size and value of their proven reserves, with Oando's standing at 1.0Bnboe —referred to as the Borrowing Base. This upsizing is a result of the Company's significant progress in deleveraging, having substantially reduced the original $525 million RBL2 facility, signed in 2019, down to $100 million by the close of 2024. This proactive debt management has paved the way for successful refinancing. Speaking on this strategic achievement, Mr. Wale Tinubu, Group Chief Executive, Oando PLC, commented: 'We are pleased to have completed the upsizing of our RBL2 facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximizing the value of our expanded asset portfolio. Our Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cashflows to Oando over the assets' life. This working capital facility is a critical enabler towards efficiently extracting and monetizing these resources. We appreciate the continued partnership of Afreximbank and Mercuria, whose unwavering support underscores their alignment with our long- term focus on maximizing production, optimizing asset performance, and delivering sustainable value to all stakeholders.' This newly secured capital injection will be strategically deployed to aggressively pursue key growth initiatives, including accelerated drilling campaigns, critical infrastructure upgrades across its operations, and the implementation of advanced operational efficiencies throughout its portfolio. These strategic investments directly support the Company's stated ambition to significantly increase its production levels to 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet (Bcf) of gas per day by the end of 2029. This positive development follows Oando's landmark $783 million acquisition of the Nigerian Agip Oil Company (NAOC) from Italian energy giant, ENI, in August 2024. This transformative acquisition significantly expanded Oando's operational landscape, incorporating twenty-four currently producing fields, approximately forty identified exploration prospects and leads, twelve key production stations, an extensive network of approximately 1,490 km of pipelines, three vital gas processing plants, the strategic Brass River Oil Terminal, the significant Kwale-Okpai phases 1&2 power plants boasting a total nameplate capacity of 960MW, and a comprehensive suite of associated infrastructure. This successful refinancing underscores the confidence of leading financial institutions in Oando's strategic direction and its ability to capitalize on its expanded asset base to drive growth and value creation in the Nigerian energy sector and beyond. Distributed by APO Group on behalf of Oando PLC.
Zawya
04-06-2025
- Business
- Zawya
Oando Profit-After-Tax up 267% to N220 billion in FY2024 Audited Results
Oando PLC ( Africa's leading integrated energy company listed on both the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), posted robust Audited Full Year (FY) 2024 financial results with a 44% increase in revenue to N4.1trillion compared to N2.9 trillion in FY 2023. In the upstream, Oando's production witnessed a 3% increase to 23,727 boepd; made up of crude oil production which increased by 27% to 7,558 bopd, while NGL production and gas decreased respectively by 35% to 156 bpd, and 5% to 16,013 boepd. The company's 2P reserves grew 95% year-on-year to 983 MMboe (2023: 505 MMboe), representing a 188% reserves replacement ratio and underscoring the strength of the company's upstream portfolio post-acquisition. The company also reported a sustained operational uptime of 86%, supporting off-take reliability and reducing deferred production. Similarly, other indigenous players have also reported significant revenue growth following the recent wave of International Oil Company divestments. Seplat recorded a revenue of ₦1.65 trillion, representing a 137% increase from 2023, while Aradel posted ₦581.2 billion in revenue, a 162% increase compared to the previous year. Speaking on the company's upstream performance, Group Chief Executive, Oando PLC, Wale Tinubu said, ' 2024 was a defining year for Oando, with the successful acquisition and integration of NAOC marking the culmination of a decade-long strategic growth journey which has significantly deepened our upstream portfolio, resulting in our assumption of operatorship of the OML 60–63 series and the doubling of our working interest in the assets from 20% to 40%, as well as our 2P reserves from 500 million barrels of oil equivalent to 1 billion barrels.' In the downstream, Oando's trading subsidiary reported that it sold 20.7 million barrels of crude oil in 2024; a 37% decline from 2023 due to structural changes in the Nigerian oil market. Additionally, refined product volumes declined by 64% to just over 599 kMT, due to weakened domestic demand, driven by the challenging macroeconomic in-country. Projections for global oil prices and demand in 2025 remain uncertain due to persistent macroeconomic and trade policy uncertainties. JP Morgan pegs Brent to peak at $66/bbl in 2025 and $58/bbl in 2026 while the U.S. Energy Information Administration's (EIA) predictions project Brent crude oil prices to fall from an average of $81 per barrel (b) in 2024 to $74/b in 2025 and $66/b in 2026 citing an increase in global production coupled with slower global demand growth. Within its renewable energy business, the company continued to advance its clean energy agenda recording measurable progress across multiple verticals. By the end of 2024 the electric mass transit programme had covered 121,145 km, transported over 205,000 passengers, displacing 163,546 kg of CO₂ emissions and saving more than 60,000 litres of diesel. Other notable achievements include signing MoUs for wind projects with Cross River and Edo State as well as launching a geothermal feasibility study in collaboration with NNPC, exploring the conversion of mature wells to renewable power assets. As the company continues to integrate its expanded portfolio following its most recent strategic acquisition, current projections show it's gone into 2025 with strong momentum and clear ambition. Tinubu remarked 'Looking ahead, 2025 will be our year of execution. Our key priorities shall include unlocking synergies from the acquisition, addressing above-ground security risks through the implementation of a revamped security framework aimed at curbing the persistent theft of oil, cost optimization, balance sheet restructuring, enhancing operational efficiency, and leveraging technology to improve productivity across our operations. In our bid to ramp up production towards achieving our target of 100,000 bopd and 1.5 tcf of gas by 2029, we shall pursue a dual-track approach of rig-less interventions and well workovers, complemented by an aggressive drilling program. We are excited by the opportunities that lie ahead and remain committed to delivering enhanced shareholder returns, shared prosperity and maintaining our position as a leading player in Africa's evolving energy landscape.' The published audited FY 2024 results also include approximately four months of contribution from Nigerian Agip Oil Company (NAOC), following the completion of the acquisition on August 22, 2024. Following this, the company has set a production guidance of 30,000–40,000 barrels of oil equivalent per day (boepd) in its 2025 outlook. This aligns with its post-acquisition optimisation plans to maximise portfolio value and supports its four-year target of reaching 100,000 barrels per day. It is evident that local players, particularly those that have become operators following the recent IOC divestments, are increasingly well-positioned to drive the future of the Nigerian energy sector. These indigenous companies possess unique insights and contextual experience that enable them to more effectively manage onshore and shallow water assets. This shift is expected to generate a ripple effect across the economy by increasing local employment, enhancing capacity development, and improving government revenue through taxes retained within the country, revenue that was previously repatriated to the home countries of the International Oil Companies (IOCs). Distributed by APO Group on behalf of Oando PLC.
