Amid oil theft, vandalism, Oando’s profit hits N32.9 billion
Oando, Nigeria’s indigenous energy solutions provider, yesterday, posted an N32.9 billion profit-after-tax in its full-year-ended 2021 financial.
Despite being impacted by an astronomical increase in militancy and sabotage at the time of financial reporting, the company recorded a 68 per cent increase in their turnover to N803.5 billion compared to N477.1 billion in 2020 and a profit-after-tax (PAT) of N32.9 billion compared to loss-after-tax of N140.7 billion in 2020.
Commenting on the audited financial results, the Group Chief Executive Officer, Oando, Adewale Tinubu, said: “Our audited the full year 2021 financial statement is 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 realized oil sale price – coupled with the refund of long-standing receivable.”
As a result of the decline of the country’s oil output due to pipeline vandalism, oil theft and illegal refining, Oando’s average daily oil production decreased by 40 per cent to 26,775 boe/day in 2021, compared to 44,550 boe/day in 2020.
In 2021, the Company’s production consisted of 8,849 bbls/day of crude oil as against 15,912bbs/day FYE 2020, 1,699 boe/day of NGLs and 16,227 boe/day of natural gas as a result of shut-ins for repairs and maintenance and sabotage incidents at its facilities.
This year has seen the company record positive highlights, including the recent announcement of its intent to acquire the Nigeria Agip Oil Company Limited (AGIP) from Eni as well as the launch of its electric mass transit buses in partnership with the Lagos State government, signalling that things are beginning to look-up for the indigenous giant.
In addressing the operational challenges faced during the reporting period, Tinubu said: “Although a surge in militancy and sabotage activities across the Niger Delta negatively affected our operations during the reporting period, we have seen progress in security initiatives and are consistently seeking innovative solutions to stabilize our oil and gas production.”