SAT JUNE 01 2024-theGBJournal| Oando PLC’s profit rose sharply in FYE 2023 on higher trading volumes, strategic global partnerships and net foreign exchange gains on the group’s foreign currency denominated assets, leaving earnings well above analysts forecasts.
The company’s earned N74.7billion in Profit-After-Tax compared to Loss-After-Tax of N81.2billion (FYE 2022).
Turnover was 71% higher at N3.4 trillion compared to N19 trillion in FYE 2022 with a 23% reduction in upstream borrowings ($488.9million (FYE 2023), vs. US$635.6million (FYE 2022).
Operating Profit for the period increased by 924% primarily driven by the above-mentioned increase in revenue, as well as a significant increase in other operating income largely because of foreign exchange gains on the group’s US dollar denominated monetary assets despite an increase in admin expenses primarily from exchange losses from the impact of the Naira devaluation on our foreign currency denominated liabilities.
The upstream performance was underpinned by a 1% increase in production (20,837 boepd FYE 2023 vs 20,703 boepd FYE 2022), Oil production of 6,024bbls/day (vs 4,939bbls/day in FYE 2022), Natural Gas production of 14,572boe/day (vs 15,292boe/day in FYE 2022) and NGL production of 241bbls/day (vs 472bbls/day in FYE 2022).
Oando Plc also reported a 50% increase in traded crude oil volumes 32.8 million bbls FYE 2023 vs 21.8 million bbls FYE 2022, and 15% decrease in traded refined petroleum products (1,645,535 MT in 2023 vs 1,937,833 MT in FYE 2022).
”Our milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100% of the shares of NAOC Ltd, marked a pivotal moment for our organization and is poised to unlock substantial synergies in the near future. Our focus is now on completing the acquisition and seamlessly integrating operations to deliver exceptional value to our shareholders,” Wale Tinubu, Group Chief Executive, Oando PLC said while commenting on the company’s performance.
During the twelve months to December 31, 2023, the Group incurred $52.9 million on capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $101.9 million in the twelve months to December 31, 2022.
Capital Expenditures in 2023 consisted of $50.6 million at OMLs 60 to 63 incurred on oil and gas properties, $2.2 million at OML 56, and $0.1 million at OML 13
In FYE 2023, Oando Trading sold approximately 32.8 million barrels of crude oil under various contracts with NNPC Limited.
Oando PLC is Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange.
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