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Oando PLC Announces Unaudited FYE 2021 Results, Posts N34.7 Billion Profit-After-Tax
Oando PLC
(Incorporated in Nigeria and registered
as an external company in South Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
(“Oando” or the “Company”)
PRESS STATEMENT
Oando PLC Announces Unaudited FYE 2021 Results, Posts N34.7 Billion Profit-After-Tax
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
unaudited results for the twelve months period ended December 31, 2021.
HIGHLIGHTS
Operational
• Upstream: 40% production decrease, 26,775boe/day compared to 44,550boe/day (FYE
2020)
- Oil production of 8,849bbls/day (vs 15,912bbls/day in FYE 2020)
- Natural Gas production of 16,227boe/day (vs 26,881boe/day in FYE 2020)
- NGL production of 1,699bbls/day (vs 1,757bbls/day in FYE 2020)
• Downstream:
o 8% increase in traded crude oil volumes of 17.4 million (vs 16.1 million in FYE
2020)
o 39% increase in traded refined petroleum products (962,370 MT compared to
694,653 MT in FYE 2020)
Financial
• 51% Turnover increase, N722.5 billion compared to N477.1 billion (FYE 2020)
• Profit-After-Tax of N34.7 billion compared to Loss-After-Tax of N140.7 billion (FYE 2020)
• 10% Total Group Borrowings increase, N460.8 billion compared to N419.6 billion (FYE
2020)
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
“2021 was defined by contrasting themes for Nigerian oil producers, with buoyant oil prices
tempered by an increasingly challenging local operating environment. Bullish oil prices throughout
the year saw us record a 105% increase in average realized oil sale price whilst a surge in
militancy and sabotage across the Niger Delta resulted in a 40% decline in average hydrocarbon
production compared to 2020.
Despite the challenges, a strong revenue performance, coupled with the refund of a long-standing
receivable contributed to a Net Profit of N34.7 billion.
As we continue to drive growth of our existing businesses, whilst also exploring creative solutions
towards curbing the incessant pipeline sabotage incidences that continue to plague our local
industry, we are also committed to investing in climate friendly and bankable energy solutions
via Oando Clean Energy Limited, thus expanding our portfolio from Oil and Gas to include non-
fossil energy solutions. We will continue to update our esteemed shareholders as progressive
developments are made in the coming year”.
OPERATIONS REVIEW
Upstream:
Production for the twelve months ended 31 December 2021:
FYE 2021 FYE 2020 % Change
Crude Oil (bbls/day) 8,849 15,912 -44%
NGLs (bbls/day 1,699 1,757 -3%
Natural Gas (boe/day) 16,227 26,881 -40%
Total (boe/day) 26,775 44,550 -40%
During the twelve months ended December 31, 2021, average production was 26,775 boe/day,
as compared to 44,550 boe/day in 2020. In 2021, production consisted of 8,849 bbls/day of crude
oil, 1,699 boe/day of NGLs and 97,363 mcf/day (16,227 boe/day) of natural gas. Production
decreases were 42% at OML 60-63, 23% at OML 56 and 1% decrease at OML 13 respectively.
Production decreases was a result of shut-ins for repairs and maintenance and sabotage
incidences at the facilities.
During the twelve months to December 31, 2021, the Group incurred $63.4 million on capital
expenditures related to the development of oil and gas assets and exploration and evaluation
activities, compared to $83 million in the twelve months to December 31, 2020.
Capital Expenditures in 2021 consisted of $59.2 million at OMLs 60 to 63 incurred on oil and gas
properties, $3.3 million at OML 56 and $0.9 million capital expenditure recorded on other assets.
Downstream:
Traded volumes for the twelve months ended 31 December 2021:
Traded Volumes FYE 2021 FYE 2020 % Change
Crude Oil (bbls) 17,445,256 16,081,633 8%
Refined Products (MT) 962,370 694,653 39%
In FYE 2021, Oando Trading sold approximately 17 million barrels of crude oil under various
contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 962,370 MT of
refined products.
FINANCE REVIEW
N Million (unless otherwise stated) FYE 2021 FYE 2020 % Change
Revenue 722,447 477,070 51%
Operating Profit 78,691 (74,339) 206%
Profit/(Loss)-After-Tax 34,728 (140,675) 125%
Total Borrowings 460,782 419,630 10%
Average Realized Oil Price (US$/bbl) 70.12 34.21 105%
Average Realized Gas Price (US$/boe) 9.96 7.13 40%
Average Realized NGL Price (US$/boe) 6.98 5.48 27%
Revenue
Revenue for the period was positively impacted by high product prices, with realized average
crude oil price increasing by 105% ($70.12 per barrel compared to $34.21 per barrel in 2020),
natural gas by 40% ($9.96/boe compared to $7.13/boe in 2020), and NGL by 27% ($6.98/boe
compared to $5.48/boe in 2020). These, in addition to an 8% increase in traded crude oil volumes
(17,445,256 bbls compared to 16,081,633 bbls in 2020), and a 39% increase in traded refined
products (962,370 MT compared to 694,653 MT in 2020) contributed to an overall increase in
revenue of 51% (N722.5 billion compared to N477.1 billion in the same period in 2020). Revenue
growth was negatively impacted by a 40% decline in production (26,775 boepd compared to
44,550 boepd in 2020) due to increased sabotage activities.
Operating Profit
The Operating Profit of N78.7 billion in 2021 was primarily driven by higher revenue as well as a
net reversal of asset impairments totalling N112.1 billion due to the following:
• Reversal of Impairment of Non-Current Receivables: Following the recovery of a
longstanding receivable, impaired in prior years due to uncertainty around its collectability,
the impairment provision has now been reversed to the tune of N29.9 billion.
• Reversal of Impairment of Trade and Other Receivables: This relates to reversal of
impairment provisions to the tune of N92.8 billion, made in prior years on a receivable due
from a third-party following reduction in said receivables.
Profit-After-Tax
The Profit-After-Tax for FYE 2021 of N34.7 billion was driven primarily by a higher operating profit,
as well as an increase in Finance Income to N44.1 billion (compared to N9.3 billion in 2020).
Total Borrowings
Total Borrowings increased by 10% to N460.8 billion (compared to N419.6 billion in FYE 2020).
Ends.
For further information, please contact:
Ayotola Jagun
Company Secretary
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6159
ajagun@oandoplc.com
Adeola Ogunsemi
Group Chief Financial Officer
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6506
aogunsemi@oandoplc.com
Ibukun Opeodu
Investor Relations Manager
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (1) 270400, Ext 6114
iopeodu@oandoplc.com
For Oando PLC
Ayotola Jagun
Chief Compliance Officer & Company Secretary
Lagos
March 28, 2023
Shareholders are advised that the Company’s financial results for the twelve months period ended
31 December 2021 are now available on the JSE Limited website:
https://senspdf.jse.co.za/documents/2023/jse/isse/untp/oando21.pdf
Full Announcement
This short-form announcement is the responsibility of the Directors of the Company and is a summary of
the information in the full announcement.
Any investment decision by investors and/or shareholders should be based on consideration of the full
announcement, copies of which may be requested from the Company Secretary DDawodu@Oandoplc.com
at no charge.
GLOSSARY
“boe/day” barrels of oil equivalent per day
“bbls/day” barrels of oil per day
“mcf/day” thousand cubic feet per day
“bbls” barrels of oil
“boe” barrels of oil equivalent
“US$/bbl” US dollars per barrel of oil
“US$/boe” US dollars per barrel of oil equivalent
“US$/mcf” US dollars per thousand cubic feet
“MT” Metric Tonnes
“OML” Oil Mining Licence
Date: 29-03-2023 10:57:00
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