Oando PLC, Nigeria’s leading indigenous energy solutions provider, reported a N74.7 billion Profit-After-Tax (PAT) in its unaudited financials for the year ending 2023. This marks a significant turnaround from the previous year when the company posted a loss after tax.
Additionally, Oando’s clean energy division, Oando Clean Energy Limited (OCEL), launched electric mass transit buses in partnership with the Lagos State government, signaling a positive outlook for the company.
The release of the unaudited FYE2023 results brings Oando closer to meeting regulatory requirements for listed companies, positioning it to align with its peers by the end of the year. This transparency is expected to boost confidence among shareholders and investors regarding the company’s current state and future prospects.
In 2023, despite the challenges faced by the oil and gas sector due to militancy and sabotage, Oando achieved a 71 percent increase in turnover, reaching N3.4 trillion compared to N1.9 trillion in FYE 2022.
Wale Tinubu, Group Chief Executive of Oando PLC, commented on the results: “Despite persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, we achieved a profit after tax of N74.7 billion in 2023. This success is largely driven by increased trading volumes due to our strategic global partnerships and net foreign exchange gains on the group’s foreign currency-denominated assets.”
He added, “Our milestone signing of the Sale and Purchase Agreement with Eni for the acquisition of 100 percent of the shares of NAOC Ltd. marked a pivotal moment for our organization. This acquisition 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.”
Oando’s production metrics for the year included 6,024 barrels per day (bbls/day) of oil, up from 4,939 bbls/day in 2022, natural gas production of 14,572 boe/day compared to 15,292 boe/day in 2022, and Natural Gas Liquid (NGL) production of 241 bbls/MMscf/day, down from 472 bbls/MMscf/day in 2022.
In trading operations, Oando saw a 50 percent increase in traded crude oil volumes, reaching 32.8 million bbls in 2023, compared to 21.8 million bbls in 2022. However, there was a 15 percent decrease in traded refined petroleum products, with 1,645,535 MT in 2023 compared to 1,937,833 MT in 2022.
Looking ahead, Tinubu stated: “Having weathered the storm of recent years, our latest results provide a foundation for us to consolidate and build for the future. With our planned acquisition of NAOC, we are positioned to take full operatorship and drive up outputs, value, and efficiencies. Moreover, our leadership in clean energy expands our footprint as an integrated energy company, grounded in today’s realities and the possibilities of the future.”
Comment here