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Press - Oando PLC Announces Unaudited FYE 2023 Results, Posts 71% Turnover increase & N74.7billion 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")
31st May 2024
PRESS STATEMENT
Oando PLC Announces Unaudited FYE 2023 Results, Posts 71% Turnover
increase and N74.7billion 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
its unaudited results for the twelve months period ended December 31, 2023.
OPERATIONAL HIGHLIGHTS
Upstream:
• 1% increase in production: 20,837 boepd FYE 2023 vs 20,703 boepd FYE 2022
• Oil production of 6,024bbls/day (vs 4,939bbls/day in FYE 2022)
• Natural Gas production of 14,572boe/day (vs 15,292boe/day in FYE 2022)
• NGL production of 241bbls/day (vs 472bbls/day in FYE 2022).
Trading:
• 50% increase in traded crude oil volumes 32.8 million bbls FYE 2023 vs 21.8 million bbls
FYE 2022
• 15% decrease in traded refined petroleum products (1,645,535 MT in 2023 vs
1,937,833 MT in FYE 2022)
FINANCIAL HIGHLIGHTS
• 71% Turnover increase. N3.4trillion FYE 2023 vs N1.9trillion (FYE 2022)
• Profit-After-Tax of N74.7billion compared to Loss-After-Tax of N81.2billion (FYE 2022)
• 23% reduction in Upstream borrowings: $488.9million (FYE 2023), vs. US$635.6million
(FYE 2022).
Commenting on the results Wale Tinubu, Group Chief Executive, Oando PLC said:
"Despite the persistent pipeline vandalism across the Niger Delta, which continues to dampen
crude production, we achieved a profit after tax of N 74.7 billion in 2023 largely driven by increased
trading volumes due to our strategic global partnerships and net foreign exchange gains on the
group's foreign currency denominated assets as against losses on our foreign currency
denominated liabilities. Furthermore, our milestone signing of the Sale and Purchase Agreement
with Eni towards the acquisition of 100% of the shares of NAOC Ltd, marked a pivotal moment
for our organization and is poised to unlock substantial synergies in the near future. Our focus is
now on completing the acquisition and seamlessly integrating operations to deliver exceptional
value to our shareholders"
OPERATIONS REVIEW
Upstream:
Production for the twelve months ended 31 December 2023:
FYE 2023 FYE 2022 % Change
Crude Oil (bbls/day) 6,024 4,939 22%
NGLs (bbls/day 241 472 -49%
Natural Gas (boe/day) 14,572 15,292 -5%
Total (boe/day) 20,837 20,703 1%
During the twelve months ended December 31, 2023, average production was 20,837bbl/day,
compared to 20,703bbl/day in 2022. In 2023, production consisted of 6,024bbls/day of crude oil,
241bbl/day of NGLs and 14,572 boe/day of natural gas. Marginal Production increase was a result
of repairs of shut in wells offset by persistent sabotage activities.
During the twelve months to December 31, 2023, the Group incurred $52.9 million on capital
expenditures related to the development of oil and gas assets and exploration and evaluation
activities, compared to $101.9 million in the twelve months to December 31, 2022.
Capital Expenditures in 2023 consisted of $50.6 million at OMLs 60 to 63 incurred on oil and gas
properties, $2.2 million at OML 56, and $0.1 million at OML 13.
Trading:
Traded volumes for the twelve months ended 31 December 2023:
Traded Volumes FYE 2023 FYE 2022 % Change
Crude Oil (bbls) 32,792,888 21,820,894 50%
Refined Products (MT) 1,645,535 1,937,833 -15%
In FYE 2023, Oando Trading sold approximately 32.8 million barrels of crude oil under various
contracts with NNPC Limited.
FINANCIAL REVIEW
N '000 (unless otherwise stated) FYE 2023 FYE 2022 % Change
Revenue 3,403,475,797 1,993,754,362 71%
Operating Profit 214,519,985 20,584,252 924%
Profit/ (Loss)-After-Tax 74,723,154 (81,230,816) 192%
Average Realized Oil Price (US$/bbl) 83.15 109.55 -24%
Average Realized Gas Price (US$/boe) 12.06 14.74 -18%
Average Realized NGL Price (US$/boe) 4.87 6.23 -22%
Revenue
Revenue for the period increased by 71%, positively impacted by significant increase in our
trading activity and exchange rate translations, despite lower oil, gas and NGL production
volumes and realized prices.
Operating Profit
Operating Profit for the period increased by 924% primarily driven by the above-mentioned
increase in revenue, as well as a significant increase in other operating income largely because
of foreign exchange gains on the group's US dollar denominated monetary assets despite an
increase in admin expenses primarily from exchange losses from the impact of the Naira
devaluation on our foreign currency denominated liabilities.
Profit after Tax
The above factors resulted in a Profit after Tax position of N74.7billion in 2023, despite a 35%
increase in net finance costs due to an increase in interest rates on several of our major facilities
in line with increases in global interest rates.
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
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
"NGL" Natural Gas Liquids
JSE Sponsor to Oando
Questco Corporate Advisory Proprietary Limited
Date: 03-06-2024 07:05:00
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