Business
Oando PLC Posts N13.6 Billion Third Quarter Profit Amid Rise in Supply and Trading Revenue
Oando PLC reported a post-tax profit of N13.6 billion for the third quarter of 2024, ending September 30, marking a significant recovery from the N2.2 billion loss recorded in the same period last year.
This represents a 510.48% year-on-year increase, bringing the company’s total post-tax profit for the nine months of 2024 to N76.2 billion.
Revenue for the third quarter stood at N1.1 trillion, a 15.7% increase from the previous year, with total revenue for the nine months reaching N3.1 trillion. The majority of this nine-month revenue—N2.9 trillion—came from the supply and trading of crude oil, as well as refined and unrefined petroleum products.
Key financial highlights show that revenue increased to N1.1 trillion, up 15.69% YoY, while the cost of sales rose to N1 trillion, up 8.93% YoY. Gross profit climbed to N112 billion, reflecting a 174.89% YoY increase, while other operating income grew by 42.06% to N28.5 billion, largely driven by foreign exchange gains. Operating income rose 13.69% YoY to N39 billion, supported by exploration and production activities in oil blocks across the Nigerian continental shelf, deep offshore, and São Tomé and Príncipe.
However, net finance costs surged by 90.85% YoY to N54.7 billion, with 71.4% of this increase linked to exploration and production activities. Despite the rise in net finance costs, Oando reported a post-tax profit of N13.6 billion, a notable turnaround from the N2.2 billion loss reported the previous year. This reflects a 510.48% YoY improvement.
Although the company recorded a post-tax profit, retained earnings remained negative at N441.7 billion, though this represents an improvement from N506 billion in the previous year.
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Oando’s total assets grew significantly by 192.97% YoY to N7.84 trillion for the nine-month period ending September 30, 2024, compared to N2.68 trillion in the previous year. Non-current assets saw a sharp increase to N4.53 trillion, up from N1.86 trillion, primarily driven by increased investments in property, plant, equipment, and intangible assets. Current assets also experienced substantial growth, reaching N3.31 trillion, up from N815.5 billion, supported by strong performance in trade and other receivables as well as higher cash and cash equivalents.
Finance investments, lease receivables, and short-term investments contributed to the company’s expansion, supporting its strategic goals.