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Oando PLC Announces Audited FYE 2023 Results, Posts 43% Turnover increase and N60.3 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")
1st November 2024
PRESS STATEMENT
Oando PLC Announces Audited FYE 2023 Results, Posts 43% Turnover
increase and N60.3 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
its audited results for the twelve months period ended December 31, 2023.
OPERATIONAL SUMMARY
Upstream:
• 12% increase in production: 23,258 boepd FYE 2023 vs 20,703 boepd FYE 2022
o Oil production of 6,211bbls/day (vs 4,939bbls/day in FYE 2022)
o Natural Gas production of 16,808boe/day (vs 15,292boe/day in FYE 2022)
o NGL production of 239bbls/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 SUMMARY
• 43% Turnover increase: N2.9 trillion FYE 2023 vs N1.9 trillion (FYE 2022)
• Profit-After-Tax of N60.3 billion compared to Loss-After-Tax of N81.2billion (FYE 2022)
• 23% reduction in Upstream borrowings: US$488.9million (FYE 2023), vs.
US$635.6million (FYE 2022).
Commenting on the results Wale Tinubu CON, Group Chief Executive, Oando PLC said:
"Despite 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% increase in total production, and favorable exchange gains
from our foreign currency denominated assets.
Our recently completed transformational acquisition of NAOC Ltd stands as a pivotal moment for
the Company due to the expansive reserves and vast infrastructure network. Following our 2014
acquisition of Conocophillip's Nigerian unit, this transaction was the next phase in our long-term
strategy to increase our reserves and production capacity by leveraging on the exit of the
International Oil Companies, whilst securing operational control of the assets. Our 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 stakeholders."
Upstream:
Production for the twelve months ended 31 December 2023:
FYE 2023 FYE 2022 % Change
Crude Oil (bbls/day) 6,211 4,939 26 %
NGLs (bbls/day) 239 472 (49) %
Natural Gas (boe/day) 16,808 15,292 10 %
Total (boe/day) 23,258 20,703 12 %
During the twelve months ending December 31, 2023, average production was 23,258bbl/day,
compared to 20,703bbl/day in 2022. In 2023, production consisted of 6,211bbls/day of crude oil,
239bbl/day of NGLs and 16,808 boe/day of natural gas. Production increase was a result of
improved operations, repairs of shut in wells offset by persistent sabotage activities.
During the twelve months to December 31, 2023, the Group incurred $52.3 million on capital
expenditures related to the development of oil and gas assets and exploration and evaluation
activities, compared to $101.9 million in the twelve months to December 31, 2022.
Trading:
Traded volumes for the twelve months ended 31 December 2023:
Traded Volumes FYE 2023 FYE 2022 % Change
Crude Oil (bbls) 32,792,888 21,820,894 50 %
Refined Products (MT) 1,645,535 1,937,833 (15) %
In FYE 2023, Oando Trading sold approximately 32.8 million barrels of crude oil under various
contracts with NNPC Limited.
FINANCIAL REVIEW
N '000 (unless otherwise stated) FYE 2023 FYE 2022 % Change
Revenue 2,845,598,308 1,993,754,362 43%
Operating Profit 218,305,586 20,584,252 961%
Profit/ (Loss)-After-Tax 60,277,168 (81,230,816) 174%
Average Realized Oil Price (US$/bbl) 83.15 109.55 (24) %
Average Realized Gas Price (US$/boe) 12.19 14.74 (17) %
Average Realized NGL Price (US$/boe) 4.87 6.23 (22) %
Revenue
Revenue for the period increased by 43%, positively impacted by a significant increase in our
trading activity and exchange rate translations, higher oil and natural gas production, offset by
lower NGL production volumes and realized prices.
Operating Profit
Operating Profit for the period increased by 961%, primarily driven by the above-mentioned
increase in revenue, as well as a significant increase in other operating income largely due to
foreign exchange gains on the group's US dollar denominated monetary assets despite an
increase in administrative 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 N60.3 billion in 2023.
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
For: Oando PLC
Ayotola Jagun (Ms.)
Chief Compliance Officer and Company Secretary
JSE Sponsor to Oando
Questco Corporate Advisory Proprietary Limited
Date: 04-11-2024 07:10:00
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