18th September, 2023
Oando posted a profit after tax of N32.9 billion in a late filing of its audited 2021 account made available to Nigerian Exchange today.
According to the report, the leading indigenous oil company recorded a 68 percent growth in turnover from N477.1 billion in 2020 to N803.5 billion in 2021.
Profit after tax leaped from the red zone of N140.7 billion in 2020 to N32.9 billion.
The cheering report is however mellowed by the company’s debt as borrowing increased by 10 percent from N419.6 billion to N460.8 billion.
Oando said it will not declare dividends to its long suffering shareholders, whose stocks it wants to buy back very soon. The last time Oando declared dividend was in 2014.
It fell into bad times thereafter, including an accusation of fraud by the Securities and Exchange Commission.
On the back of the latest report, the company’s stock gained N1.10 to trade at N12.10 on the Nigerian Exchange.
Oando for many months before the recent surge on the exchange had traded below N6.
Its profit reported for 2021 happened because of the rising oil prices. In that year, Oando produced
26,777 barrels a day compared to 44,550 barrels a day in 2020, a decline of 40 percent.
But downstream, the company traded more crude oil volumes and refined petroleum products. According to the company, it recorded an eight percent increase in traded oil volumes from 16.1 million to 17.4 million.
Traded refined petroleum jumped 39 percent from 694,653MT to 962,370MT.
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
“Our Audited Full Year 2021 Financial Statements are 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% increase in average realized oil sale price – coupled with the refund of long-standing receivable.
“Although a surge in militancy and sabotage activities across the Niger Delta negatively affected our operations during the reporting period, we have since seen progress in security initiatives and are consistently seeking innovative solutions to stabilize our oil & gas production.
“Moving forward, we remain committed to driving growth within our upstream and trading businesses, whilst simultaneously diversifying our portfolio by investing in non-fossil and climate friendly energy solutions through Oando Clean Energy Limited.
“We will continue to update our esteemed shareholders as progressive developments are made in the coming year”.