WorldStage Newsonline– Oando PLC, Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange has announced audited results for the 12 months period ended December 31, 2022 with N81.2 billion loss after tax compared with profit after tax of N32.9 billion in 2021.
Highlights of the result include 148% turnover increase to N2.0 trillion from N804.8billion in 2021; 10% total group borrowings increase to N507.3 billion from N460.8 billion in 2021.
Operational highlights include Upstream: 23% decrease in production to 20,703boe/day from 26,775boe/day in 2021; Oil production of 4,939bbls/day from 8,849bls/day in 2021; Natural Gas production of 15,292boe/day from 16,227boe/day in 2021; NGL production of 472bbls/day from 1,699bbls/day in 2021.
On trading, it recorded 25% increase in traded crude oil volumes 21.8 million bbls from 17.4 million bbls in 2021; 101% increase in traded refined petroleum products (1,937,833 MT in from 962,371 MT in 2021.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said: “The heightened militancy and pipeline vandalism acts within the Niger Delta region dealt a substantial blow to our upstream operations, resulting in a marked reduction in our crude production volumes due to the protracted shut-ins for repair following each incidence. This was further compounded by a major gas plant fire incident which also necessitated a lengthy downtime.
“Furthermore, a rise in our net interest expense due to increased interest rates on several of our major facilities in line with global rates increases, also contributed to our Loss after Tax position.
“In response, we have put in place definitive measures to bolster our production and cash inflows towards ensuring a speedy return to profitability by collaborating with our partners to institute a comprehensive security framework aimed at permanently curbing the persistent pipeline vandalism whilst concurrently exploring inorganic growth opportunities to increase our reserves and production capabilities. “We have also implemented a strategic restructuring of our key facilities to ensure they align with our cash flow dynamics.”
