Quick Read: Oando Plc reported a pre-tax profit of N47.7 billion for 2024, despite a 53.6% decline from the previous year. Full-year revenues surged 44.86% to N4.1 trillion, driven by its Supply & Trading segment. The company achieved a strong Q4 recovery with a N16.6 billion pre-tax profit, reversing a loss in 2023. Total assets also grew significantly to N7.5 trillion, reflecting a stronger financial position.
Oando Plc has released its unaudited financial report for 2024, revealing a pre-tax profit of N47.7 billion. Despite a decline from the previous year’s N102.9 billion, the company showcased a strong recovery in the fourth quarter, with revenues soaring to N4.1 trillion, a 44.86% year-over-year increase.
Key Financial Highlights
Revenue Growth
Oando’s total revenue for 2024 reached N4.1 trillion, marking a significant 44.86% increase from N2.8 trillion in 2023. The fourth quarter alone saw revenues rise by 87.96% to N932.4 billion, up from N496.1 billion in the same period the previous year.
Profit Performance
- Pre-tax Profit: N47.7 billion, a 53.60% decline from N102.9 billion in 2023.
- Post-tax Profit: N65.4 billion, an 8.65% increase from N60.2 billion in 2023.
- Q4 Recovery: The company posted a pre-tax profit of N16.6 billion in Q4 2024, a significant turnaround from a loss of N29.5 billion in Q4 2023.
Segment Performance
Supply & Trading
The Supply & Trading segment, which includes crude, refined, and unrefined petroleum products, contributed 89.73% of total revenue, amounting to N3.7 trillion.
Exploration & Production
This segment accounted for 10.11% of total revenue, while the ‘corporate and others’ segment made up a minimal 0.10%.
Cost and Income Analysis
Cost of Sales
The cost of sales rose by 39.09% to N3.8 trillion, up from N2.7 trillion in 2023.
Gross Profit
Gross profit surged by 232.31% to N282.5 billion, compared to N85 billion in 2023.
Other Operating Income
Other operating income declined by 12.56% to N349.7 billion, with foreign exchange gains making up 91.04% of the total.
Administrative Expenses
Administrative expenses increased by 54.08% to N402.6 billion, up from N261.3 billion in 2023.
Finance Costs and Income
- Finance Costs: Rose by 74.04% to N232.1 billion.
- Finance Income: Increased by 245.77% to N58.4 billion.
Asset Position
Total Assets
Oando’s total assets grew significantly to N7.5 trillion in 2024, up from N2.6 trillion in 2023.
Non-Current Assets
Non-current assets increased to N3.8 trillion, with property, plant, and equipment accounting for 53.13% and intangible assets making up 33.18%.
Current Assets
Current assets rose to N3.6 trillion, with trade and other receivables, along with contract assets, representing 92.68% of the total.
Commentary
Oando’s 2024 financial performance reflects a mixed outcome. While pre-tax profit declined, the company achieved a remarkable revenue surge, driven by its Supply & Trading segment. The strong recovery in Q4 2024, coupled with a significant increase in post-tax profit, underscores Oando’s resilience in a challenging market.
The company’s asset base also saw substantial growth, highlighting its strengthened financial position. Despite rising costs and administrative expenses, Oando’s ability to deliver a robust gross profit and post-tax profit demonstrates its operational efficiency and strategic focus.
Key Takeaways
- Revenue Growth: N4.1 trillion, up 44.86% YoY.
- Profit Recovery: Q4 pre-tax profit of N16.6 billion, reversing a loss in Q4 2023.
- Segment Dominance: Supply & Trading contributed 89.73% of total revenue.
- Asset Expansion: Total assets grew to N7.5 trillion, reflecting a stronger financial position.
Oando’s 2024 performance sets a solid foundation for future growth, even as the company navigates evolving market dynamics.
