Table of Contents
Key Points
- Oando's Q3 2024 revenue increased to ₦1.16 trillion ($725.0 million), reflecting a 15.7 percent year-on-year (YoY) growth from ₦1.00 trillion ($625.0 million) in Q3 2023.
- The company recorded a net profit of ₦13.65 billion ($8.5 million), marking a turnaround from a ₦2.24 billion ($1.4 million) loss in Q3 2023.
- Gross Profit Jump: Gross profit rose by 175 percent YoY to ₦112.09 billion ($70.1 million) in Q3 2024, driven by cost optimization strategies.
Oando PLC, a leading integrated energy group, reported a robust financial performance for Q3 2024, with a 15.7 percent year-on-year increase in revenue to N1.16 trillion ($725 million). The company also achieved a net profit of N13.65 billion ($8.5 million), marking a significant turnaround from a N2.24 billion ($1.4 million) net loss in Q3 2023.
The impressive results stem from Oando's operational efficiency, strategic cost management, and higher contributions from key business segments. Gross profit soared to N112.09 billion ($70.1 million), reflecting a remarkable 175 percent year-on-year growth. Operating income increased by 13.7 percent to N39.08 billion ($24.4 million), despite a rise in administrative expenses to N83.24 billion ($52.0 million) due to investments in capacity expansion and strategic initiatives.
Net finance costs rose to N54.71 billion ($34.2 million), primarily due to higher interest costs on borrowings. Nonetheless, Oando's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw significant growth, underscoring its ability to maintain strong financial performance despite market challenges.
Key portfolio contributions
Oando's Q3 2024 results reflect robust performance across its core segments.
- Upstream operations: Higher oil production and favorable oil prices significantly boosted revenues, contributing to the 15.7 percent year-on-year increase to N1.16 trillion ($725 million).
- Downstream and trading segments: These divisions benefited from higher turnover, improved market conditions, and enhanced market access, leading to increased margins and revenue growth.
- Corporate services and investments: Additional income streams from these areas further supported overall growth, despite slightly higher administrative expenses related to capacity expansion and technological advancements.
Oando's ability to optimize its operations and capture value across segments highlights its strategic focus on diversification and operational resilience.
Strategic insights and operational agility
Oando demonstrated strategic agility in Q3 2024 by effectively managing costs and driving operational efficiency. Reduced cost-of-sales relative to revenue underscores the company’s prudent expense management and focus on enhancing productivity.
Improved internal processes and streamlined operations boosted gross margins, showcasing Oando’s commitment to maintaining efficiency while navigating a volatile energy market. Despite rising finance costs, Oando has successfully balanced debt management with liquidity and cash flow requirements, positioning the company for sustained profitability.
Positioned for sustained growth
Oando’s Q3 2024 results highlight the company’s resilience and ability to deliver strategic growth in the face of market challenges. By focusing on product innovation, cost management, and market penetration, Oando has set long-term goals to maximize shareholder value and establish diversified revenue streams.
Recent developments, such as the exponential growth of Group CEO Wale Tinubu’s stake to $120.2 million, reflect the company’s enhanced market value and strategic acquisitions, including NAOC Ltd.
The quarterly results, with a net profit of N13.65 billion ($8.5 million) and revenue growth to N1.16 trillion ($725 million), reinforce Oando’s potential for continued success. These achievements pave the way for further advancements in Q4 and beyond, affirming Oando’s role as a leader in the energy sector.
