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 audited results for the twelve months period ended December 31, 2022.
HIGHLIGHTS
Operational
Upstream: 23% decrease in production: 20,703boe/day FYE 2022 vs 26,775boe/day FYE 2021
- Oil production of 4,939bbls/day (vs 8,849bls/day in FYE 2021)
- Natural Gas production of 15,292boe/day (vs 16,227boe/day in FYE 2021)
- NGL production of 472bbls/day (vs 1,699bbls/day in FYE 2021)
Trading:
- 25% increase in traded crude oil volumes 21.8 million bbls FYE 2022 vs 17.4 million bbls FYE 2021
- 101% increase in traded refined petroleum products (1,937,833 MT in 2022 vs 962,371 MT in FYE 2021)
Financial
- 148% Turnover increase. N2.0 trillion FY 2022 vs N804.8billion (FYE 2021)
- Loss-After-Tax of N81.2 billion compared to Profit-After-Tax of N32.9billion (FYE 2021)
- 10% Total Group Borrowings increase, N507.3billion compared to N460.8 billion (FYE 2021)
Commenting on the results, Wale Tinubu, Group Chief Executive, Oando PLC said:
“The heightened militancy and pipeline vandalism acts within the Niger Delta region dealt a substantial blow to our upstream operations, resulting in a marked reduction in our crude production volumes due to the protracted shut-ins for repair following each incidence. This was further compounded by a major gas plant fire incident which also necessitated a lengthy downtime.
Furthermore, a rise in our net interest expense due to increased interest rates on several of our major facilities in line with global rates increases, also contributed to our Loss after Tax position.
In response, we have put in place definitive measures to bolster our production and cash inflows towards ensuring a speedy return to profitability by collaborating with our partners to institute a comprehensive security framework aimed at permanently curbing the persistent pipeline vandalism whilst concurrently exploring inorganic growth opportunities to increase our reserves and production capabilities. We have also implemented a strategic restructuring of our key facilities to ensure they align with our cash flow dynamics.”
OPERATIONS REVIEW
Upstream:
Production for the twelve months ended 31 December 2022:
| FYE 2022 | FYE 2021 | % Change | |
| Crude Oil (bbls/day) | 4,9398 | 8,849 | -44% |
| NGLs (bbl/MMscf) | 472 | 1,699 | -72% |
| Natural Gas (boe/day) | 15,292 | 16,227 | -6% |
| Total (boe/day) | 20,703 | 26,775 | -23% |
During the twelve months ended December 31, 2022, average production was 20,703 boe/day, compared to 26,775 boe/day in 2021. In 2022, production consisted of 4,939 bbls/day of crude oil, 472 boe/day of NGLs and 91,752 mcf/day (15,292 boe/day) of natural gas. Production decreases were a result of production downtimes from shut-in due to repairs and persistent sabotage activities.
During the twelve months to December 31, 2022, the Group incurred $101.9 million on capital expenditures related to the development of oil and gas assets and exploration and evaluation activities, compared to $63.4 million in the twelve months to December 31, 2021.
Capital Expenditures in 2022 consisted of $77.7 million at OMLs 60 to 63 incurred on oil and gas properties, $22.6 million at OML 56, $0.2 million at OML 13 and $1.4 million capital expenditure recorded on other assets.
Trading:
Traded volumes for the twelve months ended 31 December 2022:
| Traded Volumes | FYE 2022 | FYE 2021 | % Change |
| Crude Oil (bbls) | 21,820,894 | 17,445,55 | 25% |
| Refined Products (MT) | 1,937,833 | 962,371 | 101% |
In FYE 2022, Oando Trading sold approximately 21.8 million barrels of crude oil under various contracts with the Nigerian National Petroleum Corporation (NNPC) and delivered 1,937,833 MT of refined products.
FINANCE REVIEW
| N Million (unless otherwise stated) | FYE 2022 | FYE 2021 | % Change |
| Revenue | 1,933,754,362 | 804,796,463 | 148% |
| Operating Loss | 20,584,252 | 78,829,219 | -74% |
| (Loss)/Profit-After-Tax | (81,230,816) | 32,858,799 | -347% |
| Total Borrowings | 507,336,741 | 460,782,000 | 10% |
| Average Realized Oil Price (US$/bbl) | 109.55 | 62.14 | 76% |
| Average Realized Gas Price (US$/boe) | 14.74 | 9.95 | 48% |
| Average Realized NGL Price (US$/boe) | 6.23 | 7.16 | -13% |
Revenue
Revenue for the period was positively impacted by a significant increase in traded crude oil and refined products volumes, as well as higher realized average crude oil and natural gas prices. However, this was negatively impacted by a 23% decline in production due to increased sabotage activities across the Niger Delta, feed gas supply constraints. and a 13% decline in realized average NGL price.
Operating Profit
The decrease in Operating Profit in 2022 compared to 2021 was due to the absence in 2022, of significant one-off large reversals of impairments which occurred in 2021, the rationale of which was explained in detail in our 2021 Audited Financials and Financial Press Release. This was slightly offset by a 23% decrease in Administrative Expenses in 2022.
Loss-After-Tax
The above factors, coupled with a marked rise in our net interest expense due to increased interest rates on several of our major facilities in line with increases in global interest rates.
Total Borrowings
Total Borrowings increased by 10% to N507.3billion (compared to N460.8 billion in FYE 2021).
Ends.
For further information, please contact:
Ayotola Jagun
Company Secretary
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (201) 270400, Ext 6159
ajagun@oandoplc.com
Adeola Ogunsemi
Chief Financial Officer
The Wings Office Complex
17a Ozumba Mbadiwe Avenue
Victoria Island,
Lagos, Nigeria.
Tel: +234 (201) 270400, Ext 6506
aogunsemi@oandoplc.com
For Oando PLC
Ayotola Jagun
Chief Compliance Officer & Company Secretary
