Lagos, Nigeria – Oando PLC (referred to as “Oando” or the “Group”), Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange, today announced its audited results for the twelve months period ended December 31, 2023.
OPERATIONAL SUMMARY
Upstream:
- 12% increase in production: 23,258 boepd FYE 2023 vs 20,703 boepd FYE 2022
- Oil production of 6,211bbls/day (vs 4,939bbls/day in FYE 2022)
- Natural Gas production of 16,808boe/day (vs 15,292boe/day in FYE 2022)
- NGL production of 239bbls/day (vs 472bbls/day in FYE 2022)
Trading:
- 50% increase in traded crude oil volumes: 32.8 million bbls FYE 2023 vs 21.8 million bbls FYE 2022
- 15% decrease in traded refined petroleum products (1,645,535 MT in 2023 vs 1,937,833 MT in FYE 2022)
FINANCIAL SUMMARY
- 43% Turnover increase: N2.9 trillion FYE 2023 vs N1.9 trillion (FYE 2022)
- Profit-After-Tax of N60.3 billion compared to Loss-After-Tax of N81.2billion (FYE 2022)
- 23% reduction in Upstream borrowings: US$488.9million (FYE 2023), vs. US$635.6million (FYE 2022).
Commenting on the results Wale Tinubu CON, Group Chief Executive, Oando PLC said:
"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% increase in total production, and favorable exchange gains from our foreign currency denominated assets. Our recently completed transformational acquisition of NAOC Ltd stands as a pivotal moment for the Company due to the expansive reserves and vast infrastructure network. Following our 2014 acquisition of Conocophillip’s Nigerian unit, this transaction was the next phase in our long-term strategy to increase our reserves and production capacity by leveraging on the exit of the International Oil Companies, 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."
Upstream:
Production for the twelve months ended 31 December 2023:
During the twelve months ending December 31, 2023, average production was 23,258bbl/day, compared to 20,703bbl/day in 2022. In 2023, production consisted of 6,211bbls/day of crude oil, 239bbl/day of NGLs and 16,808 boe/day of natural gas. Production increase was a result of improved operations, repairs of shut in wells offset by persistent sabotage activities.
During the twelve months to December 31, 2023, the Group incurred $52.3 million on capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $101.9 million in the twelve months to December 31, 2022.
Trading:
Traded volumes for the twelve months ended 31 December 2023:
In FYE 2023, Oando Trading sold approximately 32.8 million barrels of crude oil under various contracts with NNPC Limited.
FINANCE REVIEW
Revenue
Revenue for the period increased by 43%, positively impacted by a significant increase in our trading activity and exchange rate translations, higher oil and natural gas production, offset by lower NGL production volumes and realized prices.
Operating Profit
Operating Profit for the period increased by 961%, primarily driven by the above-mentioned increase in revenue, as well as a significant increase in other operating income largely due to foreign exchange gains on the group’s US dollar denominated monetary assets despite an increase in administrative expenses primarily from exchange losses from the impact of the Naira devaluation on our foreign currency denominated liabilities.
Profit-After-Tax
The above factors resulted in a Profit after Tax position of N60.3 billion in 2023.
Ends.
