Oando Returns to Profitability after N141bn Loss
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Oando Returns to Profitability after N141bn Loss

Nigeria’s indigenous energy company, Oando Plc, returned to profitability in the financial year 2021 after it reported about N141 billion loss after tax in 2022, according to its delayed audited financial statement for 2021 submitted to the regulator.

Following its impressive earnings scorecard, the company stock achieved a daily maximum gain of 10% as equities investors continued to ramp up the company’s shares in the stock market. The indigenous energy group recorded a 43% share price appreciation reported last week, according to results from the Nigerian Exchange.

On the operational side, the company saw a 40% production decrease in the upstream segment, settling at 26,775boe/day compared to 44,550boe/day in 2020. It said in its regulatory filing that oil production came at 8,849 bbls/day, significantly lower than 15,912 bbl. /day in 2020.

The energy company recorded Natural Gas production of 16,227boe/day, down from 26,881boe/day in the previous year while NGL production came at 1,699bbls/day versus 1,757bbls/day in 2020.

On the downstream side, it reported 8% increase in traded crude oil volumes of 17.4 million, which was an improvement when compared with 16.1 million reported in 2020.

Also, there was a 39% increase in traded refined petroleum products which printed at 962,370 MT compared to 694,653 MT in 2020. In its financial scorecard, OANDO said its turnover increased by 68% to N803.5 billion compared to N477.1 billion in the comparable period in 2020.

Annual profit settled at N32.9 billion in 2021, coming up from a loss-after-tax of N140.7 billion in 2020. According to the audited statement, the Group said its borrowings increased by 10% in the period to N460.8 billion compared to N419.6 billion reported in 2020.

Speaking about the results, Wale Tinubu, Group Chief Executive, Oando PLC said: “Our audited 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”.

The group CEO said although a surge in militancy and sabotage activities across the Niger Delta negatively affected the company’s operations during the reporting period, the management has since seen progress in security initiatives and is consistently seeking innovative solutions to stabilize our oil & gas production.

Moving forward, Tinubu said the management remains committed to driving growth within upstream and trading businesses, whilst simultaneously diversifying 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””, the Group CEO added.

During the twelve months ended December 31, 2021, the 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 were 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 $63.5 million in capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $83.4 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 $1.0 million capital expenditure recorded on other assets.

In 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.

Revenue for the period was positively impacted by high product prices, with the realized average crude oil price increasing by 82% to $62.14 per barrel compared to $34.21 per barrel in 2020. Revenue from natural gas surged by 38% to $9.96/boe from $7.20/boe in 2020, and NGL sales grew by 31% to $7.16/boe from $5.48/boe in 2020.

Overall, revenue grew by 68% to N803.5 billion from N477.1 billion in the same period in 2020. However, the company said its Revenue performance was negatively impacted by a 40% decline in production due to increased sabotage activities.

Operating Profit

The Operating Profit of N78.8 billion in 2021 was driven by higher revenue as well as a reversal of asset impairments totalling N104.9 billion largely 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 N30.4 billion.

This relates to the reversal of impairment provisions to the tune of N73.9 billion, made in prior years on a receivable due from a third party following a reduction in said receivables.


In 2021, Oando Plc’s after-tax profit came to N32.9 billion, driven primarily by a higher operating profit, as well as a 374% increase in finance income to N44.1 billion. Naira Devaluation Deepens Economic Crisis in Nigeria

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