MON, SEPT 18 2023-theGBJournal |Oando PLC today reported operating profit of N78.8 billion in FYE 2021 driven by higher revenue, and disclosed asset impairment reversal to the tune of N104.9 billion as well.
The leading indigenous energy group listed on both the Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange noted that the impairment provision for its Non-Current Receivables has now been reversed to the tune of N30.4 billion.
It also noted the reversal of impairment provision on trade and other receivables totalling N73.9 billion.
It’s profit after tax stands N32.9 billion in the year under review, driven primarily by a higher operating profit, as well as a 374% increase in Finance Income to N44.1 billion (compared to N9.3 billion in 2020).
Oando said its revenue for the period was positively impacted by high product prices, with realized average crude oil price increasing by 82% ($62.14 per barrel compared to $34.21 per barrel in 2020), natural gas by 38% ($9.96/boe compared to $7.20/boe in 2020), and NGL by 31% ($7.16/boe compared to $5.48/boe in 2020).
These, in addition to an 8% increase in traded crude oil volumes (17,445,256 bbls compared to 16,081,633 bbls in2020), and a 39% increase in traded refined products (962,370 MT compared to 694,653 MT in 2020), contributed to an overall increase in revenue of 68% (N803.5 billion compared to N477.1 billion in the same period in 2020).
Revenue growth was negatively impacted by a 40% decline in production (26,775 boepd compared to 44,550 boepd in 2020) due to increased sabotage activities.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said the company’s Audited Full Year 2021 Financial Statements are broadly in line with earlier published Unaudited results in which the company announced an increase in profitability driven by a strong revenue performance – a consequence of an 82% increase in average realized oil sale price – coupled with the refund of long-standing receivable.
”Although a surge in militancy and sabotage activities across the Niger Delta negatively affected our operations during the reporting period, we have since seen progress in security initiatives and are consistently seeking innovative solutions to stabilize our oil & gas production. 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,” he added.
Meanwhile, average production in its upstream operation during the twelve months ended December 31, 2021, was 26,775 boe/day, as compared to 44,550 boe/day in 2020.
According to Oando, in 2021, production consisted of 8,849 bbls/day of crude oil, 1,699 boe/day of NGLs and 97,363 mcf/day (16,227 boe/day) of natural gas.
”Production decreases were 42% at OML 60-63, 23% at OML 56 and 1% decrease at OML 13 respectively. Production decreases was a result of shut-ins for repairs and maintenance and sabotage incidences at the facilities,” it said.
The Group incurred $63.5 million on capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $83.4 million in the twelve months to December 31, 2020.
Capital Expenditures in 2021 consisted of $59.2 million at OMLs 60 to 63 incurred on oil and gas properties, $3.3 million at OML 56 and $1.0 million capital expenditure recorded on other assets.
In FYE 2021, Oando Trading sold approximately 17 million barrels of crude oil under various contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 962,370 MT of refined products.
Oando also reported total borrowings increase of 10% to N460.8 billion (compared to N419.6 billion in FYE 2020).
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