Diversified energy giant, Oando Plc, has announced a profit after tax of N60.3 billion in its audited financial results for the full year ended 30 December 2023, signaling a noticeable improvement over its 2022 performance when it recorded a loss after tax of N81.3 billion.
Total revenue in 2023 rose to N2.85 trillion, an increase of 43 percent when compared to N1.9 trillion that was realised in 2022. Oando has four different business segments which are exploration and production, supply and trading, mining and infrastructure development, as well as corporate and others.
According to the published audited financial reports for 2023, the bulk of the revenue came from supply and trading, N2.07 trillion, followed by N126.78 billion from exploration and production, as well as N648.18 billion from corporate and others.
In terms of the distribution of its assets by geography, N2.25 trillion worth of its assets in 2023 were domiciled locally; N32.32 million from across West Africa, and N430.66 billion worth of assets were domiciled in other countries.
Upstream borrowings reduced by 23 percent, further strengthening the financial position of Oando. The borrowings reduced from $635.6 million in 2022 to $488.9 million in 2023.
“Despite the operational hurdles occasioned by security breaches and persistent pipeline vandalism in the Niger Delta, we achieved a profit after tax of N60 billion, bolstered by the strength of our global trading alliances, a 12% increase in total production, and favorable exchange gains from our foreign currency denominated assets,” Wale Tinubu, Group Chief Executive, Oando Plc, said.
He added: “Our recently completed transformational acquisition of NAOC Ltd stands as a pivotal moment for the Company due to the expansive reserves and vast infrastructure network. Following our 2014 acquisition of Conocophillip’s Nigerian unit, this transaction was the next phase in our long-term strategy to increase our reserves and production capacity by leveraging on the exit of the International Oil Companies, whilst securing operational control of the assets.
“Our immediate focus now shifts to a seamless integration and execution of initiatives towards achieving a marked increase in production. We are confident about the opportunities this platform provides and are committed to delivering sustainable value to all stakeholders.”
The company produced 32.79 million barrels per day of crude oil in 2023, an increase of 50 percent when compared with 21.82 million barrels per day in 2022. Refined products on the other hand reduced by 15 percent, from 1.93 million tons in 2022 to 1.65 million tons in 2023.
“In 2023, production consisted of 6,211bbls/day of crude oil, 239bbl/day of NGLs and 16,808 boe/day of natural gas. Production increase was a result of improved operations, repairs of shut-in wells offset by persistent sabotage activities,” Oando stated.
Meanwhile, the company has reported a profit after tax of N62.65 billion at half year 2024, compared to N112.45 billion half year profit in 2023, representing a decrease of 44.29 percent.
Market sentiment was negative to this announcement as its share price was among the decliners on the Nigerian Exchange Group (NGX) on Monday. Its share price declined by 9.98 percent to N80.70 per share down from N89.65 per share, even as investors traded 920,581 shares worth N74.30 million transactions yesterday.
