Oando Plc has released its financial scorecard for the year ended December 31, 2023, posting a Profit-After-Tax (PAT) of N60.27 billion- a reversal from the N81.23 billion loss in 2022.
The group audited financial result submitted at the Nigerian Exchange for 2023 full year showed that it grew revenues from N1.99 trillion in 2022 to N2.9 trillion in the year under review, representing a 43 per cent growth.
According to the result, the group reported an 80 per cent increase in volume of crude oil traded to 32.8 million bbls in 2023 compared with 21.8 million bbls recorded in the comparative period of 2022.
The cost of sales however increased at a faster pace of 45 per cent, bringing gross profit growth down to a modest 8 per cent YoY at N85.02 billion.
Operating income surged by 1,304 per cent to N399.98 billion, contributing significantly to the overall profit boost. The growth was as a result of foreign exchange gains of N388.02 billion recorded by the company in the period under review representing an increase of 1,079 per cent YoY from the same period of 2022.
Despite the surge in operating income, administrative expenses also saw an increase of 218 per cent YoY, rising to N261.35 billion. This rise in expenses partially offset the gains, as operating profit still surged by 961 per cent YoY to N218.3 billion, driven by both increased revenue and the substantial rise in other operating income.
Within the period under review, the group recorded a 15 per cent decrease in traded refined petroleum products which stood at 1645,535 MT in 2023 against 1937833 MT in the 2022 financial year.
During the 12 months ending December 31, 2023, Oando Plc average production was 23,258 bbl per day compared with 20,703 bbl per day in the preceding year. In 2023 the production consisted of 6,211 bbls per day of crude oil, 239 bbls per day of NGLs and 16.808 boe per day of natural gas. The management said that the production increase was as a result of improved operations repairs of shut in well offset by persistent sabotage activities.
The Chief Executive Officer of the company Wale Tinubu commenting on the company’s performance stated thus, “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 per cent increase in total production, and favourable exchange gains from our foreign currency denominated assets.”
