Oando Records N32.9bn Profit After Tax In 2021

Indigenous energy solutions provider, Oando has posted a N32.9 billon profit after tax in its full-year ended December 31, 2021 financials.

Despite being impacted by an astronomical increase in militancy and sabotage at the time of financial reporting, the company recorded a 68 per cent increase in its turnover to N803.5 billion compared to N477.1 billion in 2020 and a profit after tax of N32.9 billion compared to loss after tax of N140.7 billion in full year 2020.

Speaking on the audited financial results, the Group chief executive officer, Oando, Adewale Tinubu said: “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 per cent increase in average realised oil sale price, coupled with the refund of long-standing receivables.”

As a result of the decline of the country’s oil output due to pipeline vandalism, oil theft and illegal refining, Oando’s average daily oil production decreased by 40 per cent to 26,775 boe/day in 2021 compared to 44,550 boe/day in 2020.

In 2021, the company’s production consisted of 8,849 bbls/day of crude oil as against 15,912bbls/day FYE 2020, 1,699 boe/day of NGLs and 16,227 boe/day of natural gas as a result of shut-ins for repairs and maintenance and sabotage incidents at its facilities.

In addressing the operational challenges faced during the reporting period, Tinubu said: “although a surge in militancy and sabotage activities across the Niger Delta negatively affected our operations during the reporting period, we have seen progress in security initiatives and are consistently seeking innovative solutions to stabilise our oil & gas production.”

Oando saw an uptick in its trading business; the Company recorded an eight per cent increase in traded crude oil volumes of 17.4 million compared to 16.1 million in 2020 and a 39 per cent increase in traded refined petroleum products (962,370 MT compared to 694,653 MT in full year 2020).

Speaking on the company’s strategic focus for the future, Tinubu said: “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. We will continue to update our esteemed shareholders as progressive developments are made in the coming year.”

2023 has seen the company record positive highlights, including the recent announcement of its intent to acquire the Nigeria Agip Oil Company Limited (AGIP) from Eni as well as the launch of its Electric Mass transit buses in partnership with the Lagos State government, signalling that things are beginning to look-up for the indigenous giant.