This achievement is a testament to the dedication and effort of the company's visionary team, led by Chief Executive Officer Mr. Wale Tinubu, who embarked on the oil and gas venture in Nigeria several decades ago.
As a prominent African exploration and production entity, Oando is recognized for its advanced operations within Africa's upstream sector.
The company boasts a substantial investment portfolio that includes a diverse array of oil and gas fields, along with interests in both onshore and offshore production assets.
Oando's asset portfolio encompasses exploration, development, and production activities for oil and gas, with holdings in over 16 licenses across onshore, swamp, and offshore locations.
The company has received a Certified Professional Reserves Report (CPR) from D&M, the second-largest firm globally, which has a long history of auditing major oil companies such as ENI/NAOC, Chevron, and Shell.
According to the CPR, the company’s Gross Recoverable 2P reserves, based on an original 20 percent Certificate of Proficiency (CoP) stake and a new 20 percent stake in NAOC, yield a Net Present Value (NPV) of $2 billion for each 10 percent stake.
Consequently, the total valuation of Oando has reached $4 billion, prior to accounting for the acquisition debt of the newly acquired company and legacy debt.
After applying appropriate discounts, including working capital considerations, the Actual Net Asset Value (NAV) of the company, after deducting all long-term debt, is approximately $3 billion.
Given its earnings in US dollars and the inflation differential—3 percent in the US compared to over 30 percent in Nigeria—the devaluation for this year is estimated at 27 percent.
Year-on-year, the growth is at least 15 percent during optimal conditions. "The investment will be remarkable in Naira terms," remarked an informed source regarding the company's operations.
The Nigerian firm operates two power plants, Kwale 1 and 2, each with a capacity of 500MW, and includes three large gas facilities. It has established a dedicated gas line to Eleme Petrochemicals, which has become its primary supplier, along with ownership of a dedicated gas pipeline to LNG.
With over 200 active wells, nine flow stations, and its own export terminal at Brass, Oando has positioned itself as the first indigenous company to achieve the status of a major International Oil Company (IOC).
Currently, Oando is the leading gas supplier to Eleme Petrochemicals. Despite challenges posed by insecurity, Oando's peak production reached 100,000 barrels per day last year, alongside 1.5 billion standard cubic feet of gas.
For Oando, the focus extends beyond financial gain; a significant consideration is the impact the company can make and the legacy of establishing a world-class organization that paves the way for others.
In summary, Oando has consistently provided sustainable value to its stakeholders by enhancing its reserves through the optimal utilization of its existing oil and gas resources, while also acquiring near-term producing assets from international oil companies.
The company has cultivated talented young professionals through a rigorous accelerated training and exposure program, alongside experienced individuals from various multinational firms.
In 2023, Oando's stock achieved an impressive year-to-date gain of 159 percent, continuing into 2024 with a 14 percent increase in share price during the first quarter.
The release of the company's 2023 financial results on May 31, 2024, indicated a significant recovery, reporting a pre-tax profit of N104.1 billion, a stark contrast to the pre-tax loss of N61.8 billion recorded in 2022.
The rally gained momentum following the announcement of the federal government's approval for the company's complete acquisition of NAOC.
This development propelled the share price to a five-year peak of N47.85, resulting in a remarkable year-to-date increase of 371.5 percent, positioning it as the second-best performing stock on the NGX at that moment.
In a recent statement regarding these impressive results, Wale Tinubu remarked, “Despite ongoing pipeline vandalism in the Niger Delta, which continues to hinder crude production, we recorded a profit after tax of N74.7 billion in 2023.
This achievement was primarily fueled by heightened trading volumes from our strategic global partnerships and net foreign exchange gains on the group’s foreign currency-denominated assets, in contrast to losses on our foreign currency-denominated liabilities.”
With the acquisition of NAOC, Oando is poised to become a dominant force in Nigeria’s oil and gas sector, marking a transformative and game-changing decision that could significantly enhance its production capabilities.
Wale Tinubu has also emphasized the company’s commitment to optimizing these new assets, increasing production, and exploring strategic diversification into areas such as clean energy and energy infrastructure. It appears that Oando is on a path of unstoppable growth.