Oando Plc operates off the coast of Nigeria, around the Sao Tome and Principe Exclusive Economic Zone (EEZ), and has now achieved the status of Nigeria’s first Indigenous International Oil Company (IOC) .
This is undoubtedly a testament to the hard work of the company’s forward-thinking team, led by Chief Executive Officer Wale Tinubu, who took up the challenge and jumped into Nigeria’s oil and gas business decades ago. There is. .
Oando is a leading African exploration and production company with world-class operations, with significant investments in a robust portfolio of oil and gas fields, as well as participation in onshore and offshore interests. We are proud to be at the forefront of Africa’s upstream sector. To generate assets.
Its asset base covers both oil and gas exploration, development and production, with interests in more than 16 licenses for the exploration, development and production of onshore, wetland and offshore oil and gas properties. I am.
He has a Certified Professional Reserve Report (CPR) from the world’s #2 D&M and has audited ENI/NAOC, Chevron, Shell, and other oil majors for decades.
Given CPR’s total recoverable reserves of 2 pence of the net present value (NPV) of the original 20% Certificate of Proficiency (CoP) shares and the new NAOC 20% shares (10% is $2 billion each), the company The total amount will be as follows: That’s before deducting acquisition debt and legacy debt from newly acquired companies, which currently stands at $4 billion.
If appropriate discounts are applied for working capital, the company’s actual net asset value (NAV) minus all long-term debt, the equity value would be approximately $3 billion.
Given the US dollar income and the 3% inflation differential in the US compared to over 30% in Nigeria, this year’s currency devaluation is calculated at 27%.
“The year-on-year comparison is at least 15% in the best of times. This investment is going to be phenomenal from a naira perspective,” said a person familiar with the company’s operations.
The Nigerian company, which has two power plants of 500MW, namely Kwale 1 and 2, and three large gas plants, now has a dedicated gas line to Eleme Petrochemicals, which has emerged as a major supplier. It also owns a dedicated gas pipeline to LNG.
With over 200 producing wells, nine flow stations and its own export terminal, Brass, Oando has emerged as the first indigenous company to be elevated to major IOC status.
Currently, Oando is the largest gas supplier to Eleme Petrochemical. Aside from insecurity issues hampering its operations, Oando’s peak production last year was 100,000 barrels per day, or 1.5 billion scf of gas.
For Oando, it’s not necessarily about the money, but one of the important things considered is the impact the company can have and the ability to build a world-class company and open doors for other companies. It’s about heritage.
In a nutshell, Oando has been working for many years to continuously increase its reserves by exploiting the optimal potential from various existing oil and gas resources, while at the same time acquiring short-term producing assets from international oil companies. We have provided sustainable value to our stakeholders.
With experienced professionals joining from various multinational companies, the company has developed young talent through challenging accelerated training and exposure programs.
In 2023, Oando’s stock price has risen an impressive 159% since the beginning of the year. This continues through 2024, with the stock up 14% in the first quarter.
The company’s 2023 financial results released on May 31, 2024 revealed a significant turnaround in pre-tax profit of 104.1 billion naira compared to 2022’s pre-tax loss of 61.8 billion naira.
The gains further strengthened after the company announced that the Federal Government had approved its 100% acquisition of NAOC, with the stock hitting a five-year high of N47.85, an increase of 371.5% since the beginning of the year. At the time, it was ranked as the second-best performing stock on NGX.
Commenting on the enviable results recently, Wale Tinubu said: “Despite continued pipeline vandalism across the Niger Delta and continued decline in crude oil production, we achieved a post-tax profit of N74.7 billion in 2023.
“This was primarily due to higher volumes from our strategic global partnerships and net exchange gains on the group’s foreign currency assets, as opposed to losses on foreign currency debt.”
The acquisition of NAOC, which now aims to become the clear leader in Nigeria’s oil and gas industry, is seen as a transformational decision for Oando with the potential to increase production. There is.
Wale Tinubu also assured that the company is focused on optimizing these new assets, driving production and pursuing strategic diversification in areas such as clean energy and energy infrastructure. Apparently, nothing can stop Daandou this time.
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