Daud Olatunji
In a noteworthy financial turnaround, Oando, a prominent indigenous oil company, has disclosed a remarkable profit after tax of N32.9 billion in their recently released audited 2021 accounts, marking a resurgence from their N140.7 billion loss in 2020.
The report further highlights a significant growth in turnover, with a substantial 68 percent increase from N477.1 billion in 2020 to a staggering N803.5 billion in 2021, showcasing the company’s robust performance.
However, amid the celebration of this financial success, concerns emerge as Oando’s debt escalates by 10 percent, soaring from N419.6 billion to N460.8 billion, raising questions about the company’s financial stability.
Oando’s decision not to declare dividends to its long-suffering shareholders, with plans to repurchase their stocks, adds a layer of complexity.
The company has not declared dividends since 2014, and its journey has been marred by challenges, including allegations of fraud by the Securities and Exchange Commission.
Despite these hurdles, the release of this positive report has had a tangible impact on the company’s stock, surging by N1.10 to trade at N12.10 on the Nigerian Exchange. This represents a significant shift, considering Oando’s prolonged trading below N6.
On the operational front, Oando’s performance in trading crude oil volumes and refined petroleum products shines through.
The company reports an eight percent increase in traded oil volumes, from 16.1 million to 17.4 million, and a substantial 39 percent jump in traded refined petroleum, rising from 694,653MT to 962,370MT.
Wale Tinubu, Group Chief Executive of Oando PLC, commented on the results, stating, “Our Audited Full Year 2021 Financial Statements are broadly in line with our earlier published Unaudited results, with an increase in profitability driven by a strong revenue performance and innovative solutions to stabilize our oil & gas production.”
He continued, “Moving forward, we remain committed to driving growth within our upstream and trading businesses, while simultaneously investing in non-fossil and climate-friendly energy solutions through Oando Clean Energy Limited.
We will continue to update our esteemed shareholders as progressive developments are made in the coming year.”
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