Oando PLC, a leading indigenous energy group listed on both the Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange, has announced its audited financial results for the twelve-month period ending December 31, 2021. The company reported a significant turnaround, with a profit-after-tax of N32.9 billion, marking a remarkable recovery from the previous year’s loss.
Production Decrease: Oando’s upstream operations experienced a 40% decrease in production, with daily production averaging 26,775 barrels of oil equivalent per day (boe/day) compared to 44,550 boe/day in FYE 2020.
Oil Production: Crude oil production stood at 8,849 barrels per day, down from 15,912 barrels per day in the previous year.
Natural Gas Production: Natural gas production decreased to 16,227 boe/day from 26,881 boe/day in FYE 2020.
NGL Production: NGL production amounted to 1,699 barrels per day, slightly lower than the previous year’s 1,757 barrels per day.
Crude Oil Volumes: Oando Trading reported an 8% increase in traded crude oil volumes, reaching 17.4 million barrels in FYE 2021, up from 16.1 million barrels in FYE 2020.
Refined Petroleum Products: The company recorded a substantial 39% increase in the trading of refined petroleum products, delivering 962,370 metric tons compared to 694,653 metric tons in the previous year.
Revenue Surge: Oando’s revenue surged by an impressive 68%, totaling N803.5 billion compared to N477.1 billion in FYE 2020. This increase was primarily attributed to higher product prices, including an 82% rise in the average realized crude oil price, a 38% increase in natural gas prices, and a 31% rise in NGL prices.
Profit-After-Tax: The company achieved a remarkable turnaround, reporting a profit-after-tax of N32.9 billion in FYE 2021, compared to a loss-after-tax of N140.7 billion in FYE 2020.
Total Borrowings: Oando’s total borrowings increased by 10%, reaching N460.8 billion, up from N419.6 billion in FYE 2020.
Wale Tinubu, Group Chief Executive of Oando PLC, commented on the results, saying, “Our Audited Full Year 2021 Financial Statements are broadly in line with our earlier published Unaudited results in which we announced an increase in profitability driven by a strong revenue performance – a consequence of an 82% increase in average realized oil sale price – coupled with the refund of long-standing receivables.”
He further noted, “Although a surge in militancy and sabotage activities across the Niger Delta negatively affected our operations during the reporting period, we have since seen progress in security initiatives and are consistently seeking innovative solutions to stabilize our oil & gas production. Moving forward, we remain committed to driving growth within our upstream and trading businesses, whilst simultaneously diversifying our portfolio by investing in non-fossil and climate-friendly energy solutions through Oando Clean Energy Limited.”
Oando PLC’s FYE 2021 results reflect a resilient recovery in the face of operational challenges and underline the company’s commitment to its stakeholders and its strategic growth plans.