Oando recovers from loss to post N74.7bn profit
Indigenous energy company, Oando Plc, has rebounded from the loss of N78.71bn in 2022 to record N74.7bn gain in 2023.
This was indicated in its unaudited reports for the period ended December 2023 filed with the Nigerian Exchange Limited.
During the year under review, the group saw its turnover increase by 71 per cent to N3.4tn compared to N1.9tn in 2022.
Over the last four years, the company has been consistent in recording a positive upswing in turnover; in 2020, it announced a turnover of N477.1bn; in 2021, it was N803.5bn; in 2022 it stood at N1.9tn.
In a statement accompanying the results, Oando said, “This profit shows a positive turn in the company’s fortunes in comparison to the preceding year when the company posted a loss after tax. Within the larger industry context, Oando’s N74.7bn PAT compares favourably with indigenous peers over the same period under review.
“2023 has seen Oando push forward with its growth agenda, recording positive highlights, including the signing of a Sale & Purchase Agreement with Italian oil major, Eni to acquire one of its local subsidiaries, the Nigeria Agip Oil Company Limited. In addition, its clean energy arm, Oando Clean Energy Limited launched its electric mass transit buses in partnership with the Lagos State government, signalling that things are beginning to look up,” the statement partly read.
Commenting on the results, the Group Chief Executive of Oando Plc, Wale Tinubu, declared, “Despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, we achieved a profit after tax of N74.7bn in 2023, 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 as against losses on our foreign currency denominated liabilities.
“Furthermore, our milestone signing of the Sale and Purchase Agreement with Eni towards the acquisition of 100 per cent of the shares of NAOC Ltd, marked a pivotal moment for our organisation 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”.
In its trading operations, Oando had a marked improvement; recording a 50 per cent increase in traded crude oil volumes of 32.8 million barrels FYE 2023 compared to 21.8 million bbls in 2022 and a 15 per cent decrease in traded refined petroleum products (1,645,535 MT compared to 1,937,833 MT in 2022).
On the firm’s strategic focus for the future, Tinubu remarked, “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.
