Oando posts 31% drop in quarterly profit

Oando, an indigenous energy company in Nigeria, reported a 31% decline in its profit after tax to N76.3 billion in the three months to September compared to a year earlier.

The company said in an earnings release on Tuesday that the drop was driven by foreign exchange losses and net finance costs.

Average production fell to 20,560 barrels of oil equivalent per day (boepd) from 21,529 boepd in the same period of 2023 as a result of increased shut-in wells for repairs from sabotage and theft related activities, it said.

“Our performance for the nine months ended September 30, 2024, reflects our resilience and unwavering focus on delivering value amidst a challenging operating environment,” Wale Tinubu, its group chief executive, said:

He said since the acquisition of Nigerian Agip Oil Company, Oando had increased production by 40% from 22,000 boepd to 30,675 boepd.

“This progress has been driven by the deployment of quick-win strategies that have enhanced operational efficiencies and demonstrated the transformative potential of the acquisition. The integration process is advancing smoothly, and our immediate focus remains on executing strategic initiatives to maximize the value of our expanded portfolio,” he said.