Oando rebounds with N34.7bn profit

Energy company, Oando Plc on Wednesday said its profit after tax rose to N34.7bn in the 2021 financial period.

The group disclosed in a statement on Wednesday on its audited results for the year ended December 31, 2021 that this was from a loss after tax of N140.7bn reported in 2020.

It also said its total group borrowings increased by 10 per cent to N460.8bn compared to N419.6bn recorded in 2020.

According to the statement, the firm grew its turnover by 51 per cent from N477.1bn as of the end of the 2020 financial period to N722.5bn in the corresponding period of 2021.

In its upstream operations, a 40 per cent production decrease was reported from 44,550boe/day in 2020 to 26,775boe/day in 2021.

Oil production was 8,849bbls/day (vs 15,912bbls/day in FYE 2020), natural gas production was 16,227boe/day (vs 26,881boe/day in FYE 2020) and NGL production of 1,699bbls/day (vs 1,757bbls/day in FYE 2020).

In the downstream operations, an eight per cent increase in traded crude oil volumes of 17.4 million (vs 16.1 million in FYE 2020) was recorded and a 39 per cent increase in traded refined petroleum products (962,370 MT compared to 694,653 MT in FYE 2020) was announced.

Speaking on the results, the Group Chief Executive, of Oando Plc, Wale Tinubu, said, “2021 was defined by contrasting themes for Nigerian oil producers, with buoyant oil prices tempered by an increasingly challenging local operating environment.

“Bullish oil prices throughout the year saw us record a 105 per cent increase in average realised oil sale price whilst a surge in militancy and sabotage across the Niger Delta resulted in a 40 per cent decline in average hydrocarbon production compared to 2020.

“Despite the challenges, a strong revenue performance, coupled with the refund of a longstanding receivable contributed to a net profit of N34.7bn.”

He added that, “As we continue to drive the growth of our existing businesses, while also exploring creative solutions towards curbing the incessant pipeline sabotage incidences that continue to plague our local industry, we are also committed to investing in climate-friendly and bankable energy solutions via Oando Clean Energy Limited, thus expanding our portfolio from Oil and Gas to include non-fossil energy solutions.”

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