Oando Plc has released its long awaited audited financial statements for the 2023 full year. The release of the results comes a week after trading in its shares was suspended by NGC RegCo.
According to the audited financial statements released on Friday, Oando Plc grew its revenue by 43% to N2.9 trillion in 2023 from N1.9 trillion in 2022. Similarly, it reported a profit after tax N60.3 billion against a loss of N81.2 billion in 2022.
The company reported N85.02 gross profit, representing a gross margin of 2.99%.
It however, recorded N399.99 billion as “other operating income, boosting its operating profit to N218.31 billion despite a whooping N261.35 billion “administrative expenses.”
Its important to note that N388.02 billion of the “other operating income” was “Foreign exchange gain”
Finance cost, which amounts to N133.31 billion gulped more than half of the operating profit. N102.75 billion of this was spent on “bank borrowings.”
The company’s earnings per share stood at N5. Its current share price however is N89.65.
The directors do not propose dividend for the year ended 31 December 2023 (2022: nil).
Oando’s total assets more than doubled in 2023 to N2.68 trillion from N1.25 trillion in 2022. The major components of the assets are:
- Property, plant and equipment: 1.03 trillion (2022: N462.71 billion)
- Trade, other receivables and contract assets: N710.39 billion (2022: 340.52 billion)
Oando’s total liabilities, which is more than its total assets amounted to N2.94 trillion in 2023 (2022: 1.45 trillion).
It posted a negative equity of N267.18 billion in 2023 against a negative equity of N197.20 billion.
In 2023, Oando’s average oil production was 23,258bbl/day, compared to 20,703bbl/day recorded 2022. This consists of:
- Crude oil: 6,211bbls/day (vs 4,939bbls/day in FYE 2022).
- Natural Gas production also rose to 16,808boe/day (vs 15,292boe/day in FYE 2022) while
- NGL production of declined to 239bbls/day (vs 472bbls/day in FYE 2022).
Oando said its capital expenditure during the year in review amounted to $52.3 million mainly for 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.
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.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
