By Peter Egwuatu
OANDO Plc, one of leading indigenous energy solutions providers has returned to profitability recording a N34.7 billion Profit After Tax, PAT in its 2021 quarterlies.
This comes in the wake of posting a loss in its 2020 financials following a four-year-long battle with indirect shareholders of the company and the Nigerian Securities and Exchange Commission (SEC).
However, despite the prevailing challenges at the time, Oando was still able to record a 51% increase in turnover to N722.5 billion in 2021 compared to N477.1 billion in 2020 and a PAT of N34.7 billion in 2021 compared to a loss-after-tax of N140.7 billion in its full year 2020.
Commenting on the 2021 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, strong revenue performance and the refund of a long-standing receivable contributed to a Net Profit of N34.7 billion.”
Despite the recorded profits, Oando’s average daily production declined by 40% to 26,775 boe/day in 2021, compared to 44,550 boe/day in 2020.
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