After Delaying Financial Report For Three Years, Oando Announces 40% Oil Production Decline

After delaying the release of its financial reports since 2020, Oando Plc has said that its production volume in 2021 declined by 40 per cent due to activities of militants and sabotage in the Niger-Delta region.

The energy company made the revelation on Wednesday in its financial report for 2020 and 2021, obtained by THE WHISTLER.

Oando said its upstream production fell from 44,550 barrels of oil equivalent per day in 2020 to 26,775 barrels in 2021.

But it revealed that an improvement in crude oil price by 105 per cent, from $34.21 per barrel in 2020 to $70.12 per barrel helped it gain more profit and revenue in 2021 as compared to 2020, despite lower production.

According to the company, its revenue rose from N447bn in 2020 to N722.4bn in 2021.

Oando’s profit after tax rose by 125 per cent to N34.7bn in 2021, from a loss of N140.6bn recorded in 2020 during the Covid-19 pandemic.

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 per cent increase in average realized oil sale price whilst a surge in militancy and sabotage across the Niger Delta resulted in a 40 per cent decline in average hydrocarbon production compared to 2020.

“Despite the challenges, a strong revenue performance, coupled with the refund of a long-standing receivable contributed to a Net Profit of N34.7 billion.”

In 2021, Oando said it sold approximately 17 million barrels of crude oil under various contracts with the then Nigerian National Petroleum Corporation (NNPC) and delivered 962,370 MT of refined products.

During the review period, its borrowing rose by 10 per cent to N460.78bn, from N419.6Bn in 2020.