The results which were filed with the Nigerian Exchange Limited on Monday, revealed that the indigenous energy company’s turnover increased by 68 per cent to N803.5bn compared to N477.1bn in 2020.
The group’s total borrowings also increase
Commenting on the results, Group Chief Executive, Oando PLC, Wale Tinubu, said, “Our Audited Full Year 2021 Financial Statements are broadly in line with our earlier published Unaudited results in which we announced an increase in profitability driven by a strong revenue performance – a consequence of an 82 per cent increase in average realised 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 stabilise 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.”
During the twelve months to December 31, 2021, the Group incurred $63.5m in capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $83.4m in the twelve months to December 31, 2020.
Capital Expenditures in 2021 consisted of $59.2m at OMLs 60 to 63 incurred on oil and gas properties, $3.3m at OML 56 and $1.0m capital expenditure recorded on other assets.
Revenue for the period was positively impacted by high product prices, with realised average crude oil price increasing by 82 per cent ($62.14 per barrel compared to $34.21 per barrel in 2020), natural gas by 38 per cent ($9.96/boe compared to $7.20/boe in 2020), and NGL by 31 per cent ($7.16/boe compared to $5.48/boe in 2020). These, in addition to an eight per cent increase in traded crude oil volumes (17,445,256 bbls compared to 16,081,633 bbls in 2020), and a 39 per cent increase in traded refined products (962,370 MT compared to 694,653 MT in 2020) contributed to an overall increase in revenue of 68 per cent(N803.5bn compared to N477.1bn in the same period in 2020).
However, revenue growth was negatively impacted by a 40 per cent decline in production (26,775 boepd compared to 44,550 boepd in 2020) due to increased sabotage activities.
The group’s operating profit of N78.8bn in 2021 was driven by higher revenue as well as a reversal of asset impairments totalling N104.9bn.
In March, Oando Plc notified the NGX and the Johannesburg Stock Exchange Limited that it had received an offer from its core shareholder – Ocean and Oil Development Partners Limited to acquire the shares of all minority shareholders in Oando and delist from the exchanges.
Some shareholders had lamented the deal saying that the company which had not paid dividends for years now planned to delist.
The directors did not propose a dividend for the year ended 31 December 2021 same as the previous year.
Meanwhile, Oando announced the acquisition of the oil and gas unit of Italian oil giant, Eni, earlier in September.
In a statement announcing the acquisition, Oando said it reached an agreement with Eni for the acquisition of 100 per cent of the shares of Nigerian Agip Oil Company Limited.
The transaction had elicited protests in some quarters. The Petroleum and Natural Gas Senior Staff Association of Nigeria and the Nigeria Union of Petroleum and Natural Gas Workers threatened to withdraw their services over concerns for the welfare of their members in the organisations involved in the deal.
