Partner and Executive Director of Eneriom UK, Dragan Trajkov, says Oando could achieve production and cash flow levels comparable to Seplat by 2030 if the company successfully delivers on its growth targets.
Speaking during an interview with ARISE News on Monday, Trajkov said Oando’s production could rise from about 40,000 barrels of oil equivalent per day to between 120,000 and 130,000 barrels daily by 2030.
“Management, if you look at management’s 2030 scenario, they have a very good opportunity in 2030 to be in terms of production and in our estimates, even on cash flows, to be very similar to what Seplat is now.”
Trajkov identified management’s ability to deliver its production targets and prevailing commodity prices as key factors that would determine whether Oando achieves its projected growth.
“Management’s ability to deliver on its production targets, alongside prevailing commodity prices, will be critical to determining whether Oando achieves its projected growth.”
Trajkov said Oando’s initial growth projections were based on a conservative oil price assumption of $75 per barrel, noting that stronger commodity prices could further improve the company’s growth prospects.
“ The company’s initial projections were based on a conservative oil price assumption of $75 per barrel, although stronger commodity prices could further improve its growth prospects.”
He noted that investors might not have to wait until 2030 to see improvements in Oando’s valuation, as the company’s share value could increase gradually as it demonstrates progress towards its targets.
“It’s not like we have to wait till 2030, for example, to get to that valuation.”
Trajkov also projected that Oando could begin generating free cash flow in 2028, depending on management’s performance and prevailing oil market conditions.
“In our view, in our estimates, in the report, we expect it will take probably sometime in 2028 before it turns into a free cash flow territory.”
Goodness Anunobi
