Oando Grows Total Assets By 114% To N2.68trn

Oando Plc has released its audited Consolidated Financial Statements for the full year ended December 31, 2023, to the Nigerian Exchange Group (NGX).

The company reported a total asset of N2.68trn as against N1.25trn posted in the comparable period of 2022, representing a growth of 113.73 per cent.

The company recorded a 43 per cent increase in revenue, reaching N2.9trn compared to N1.9trn in 2022.

Notably, Oando achieved a turnaround, transitioning from a loss in 2022 to a profit-after-tax of N60.3bn 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).

According to the company, the reduction was consistent in gas prices as the value fell from $14.74/bbl in 2022 to $12.19/bbl in 2023; and in 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 $635.6m in 2022 to $488.9m in 2023.

Commenting on the results, Group Chief Executive, Oando Plc, Wale Tinubu, said: โ€œDespite 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.โ€

โ€œOur 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 ConocoPhillipsโ€™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 whilst securing operational control of the assets.

โ€œOur 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 stakeholdersโ€ he added.

Despite persistent operational security challenges in the Niger Delta, Oando achieved a 12 per cent increase in total production, reaching 23,258boepd in 2023 compared to 20,703boepd in 2022. Expanding on the performance of its production portfolio, Oando 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 16,808boe/day of natural gas, 10 per cent better than 15,292 boe/day of natural gas in 2022. The company cited improved operations and repairs of shut-in wells offset by persistent sabotage activities as a reason for the production increase.

The decline in global oil prices in 2023 was because of a tumultuous year of trading marked by geopolitical turmoil and concerns about the oil output levels of major global producers.

The company noted that the operating profits increase was โ€œdriven by the increase in revenue and a significant increase in other operating income, largely due to foreign exchange gains on the groupโ€™s US dollar-denominated monetary assets. This was despite an increase in administrative expenses primarily from exchange losses from the impact of the Naira devaluation on our foreign currency-denominated liabilities.โ€