Leading indigenous energy group, Oando Plc, has made public its unaudited result for the 2021 financial year, reporting a profit after tax of N34.7 billion, from a loss after tax of N140.7 billion in 2020.
In a corporate filing with the Nigerian Exchange Limited on Tuesday, the energy company said its operating profit rose by 206 percent to N78.69 billion in the period under review as against 74.33 billion in 2020, a feat primarily driven by higher revenue as well as a net reversal of asset impairments totalling N112.1 billion.
The turnover grew by 51 percent to N722.5 billion in 2021 from N477.1 billion in the comparable period of 2020.
It also said its total group borrowings increased by 10 per cent to N460.8 billion compared to N419.6 billion recorded in 2020.
In its upstream operations, a 40 per cent production decrease was reported from 44,550boe/day in 2020 to 26,775boe/day in 2021, according to the statement.
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.
“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. We will continue to update our esteemed shareholders as progressive developments are made in the coming year”
