Oando Plc a company mired in almost great financial difficulties has delightfully announced a profit after tax of N60.3 billion in its audited financials for the full year ended 2023.
The Company recorded a 43 per cent increase in revenue, reaching N2.9 trillion compared to N1.9 trillion in 2022.
This great profit turnover was a substantial improvement from its 2022 financial performance.
Oando, in a statement said it achieved a remarkable turnaround, transitioning from a loss in 2022 to a profit-after-tax of N60.3 billion in 2023, a 961 per cent increase in its operating profits despite the 24 per cent reduction in the realised oil price ($83.15/bbl in 2023 compared to $109.55/bbl in 2022).
The Group Chief Executive, Oando Plc, Wale Tinubu, elated by the performance said, “This reduction was consistent in gas prices as the value fell from $14.74/bbl in 2022 to $12.19/bbl in 2023; and in Natural Gas Liquids (NGL) prices with a similar decline from $6.23/boe in 2022 to $4.87/boe in 2023.
“Additionally, the company reduced its upstream borrowings by 23 per cent, from $635.6 million in 2022 to $488.9 million in 2023,” the oil firm added.
Commenting on the results.”
“Despite the operational hurdles occasioned by security breaches and persistent pipeline vandalism in the Niger Delta, we achieved a profit after tax of N60 billion, bolstered by the strength of our global trading alliances, a 12 per cent increase in total production, and favourable exchange gains from our foreign currency denominated assets.
“Our recently completed transformational acquisition of NAOC Ltd is a pivotal moment for the company due to the expansive reserves and vast infrastructure network.
“Following our 2014 acquisition of ConocoPhillips’s Nigerian unit, this transaction was the next phase in our long-term strategy to increase our reserves and production capacity by leveraging the exit of the International Oil Companies (IOCs) whilst securing operational control of the assets.
“Our immediate focus now shifts to a seamless integration and execution of initiatives towards achieving a marked increase in production. We are confident about the opportunities this platform provides and are committed to delivering sustainable value to all stakeholders.”
According to Tinubu, despite persistent operational security challenges in the Niger Delta, the company reached 23,258 bpd in 2023 compared to 20,703 bpd in 2022.
Expanding on the performance of its production portfolio, Oando said it averaged a daily production of 6,211 bbls/day, making a 26 per cent increase to its 4,939 bbls/day in 2022.
Consistent with the improved performance, it averaged 16,808 boe/day of natural gas, 10 per cent better than 15,292 boe/day of natural gas in 2022.
The Company also cited improved operations and repairs of shut-in wells offset by persistent sabotage activities as a reason for the production increase.
“With this solid financial performance, Oando is well-positioned to capitalise on the opportunities presented by the energy sector, building on the momentum generated by its $783 million acquisition of NAOC in August 2024.
“The acquisition doubled the company’s total reserves to 1.0 billion barrels of boe from 505.6 million boe based on 2022 reserves estimates. With its new status as an operator, Oando is better positioned to control its destiny by deploying its acquired assets to deliver even better returns to its shareholders,” Oando said.
Also, with the release of its 2023 audited financial statements, the Company stressed that it is bringing its reporting obligations to date, and it is expected that its recent shares trading suspension will be lifted, allowing investors to benefit.
“This, in tandem with its record share performance on the Nigerian Stock Exchange (NGX), with its share price on an upward trajectory, specifically growing by 127 per cent following its acquisition of NAOC, are all signs of a company on an upward swing and one to watch,” the company stated.