Militant activities, sabotage in N’Delta sank production —Oando CEO, Wale Tinubu
The Chief Executive Officer of Oando Plc, Wale Tinubu, has stated that increase in militant activities and sabotage in Niger Delta dragged hydrocarbon production down in 2021.
Hydrocarbon production, which comprises of gasoline, kerosene, lamp oil and furniture oil, dropped to 16,227 barrels of oil equivalent per day (boe/day) in 2021, falling below the 26,881 boe/day recorded the preceding year.
This is according to the financial records released on Tuesday, following years of non-disclosure due to court battles and regulatory face off with the Securities and Exchange Commission (SEC) that prevented release of earnings reports.
Also, Crude oil daily production fell by 44 per cent to 8,849 barrels per day in 2021 from the 15,912 barrels output in 2020. Similarly, Natural Gas Liquids daily output fell to 1,699 barrels, against the 1,757 reported the year before – indicating a poor outing in the upstream sector.
However, in the downstream sector, Oando reported that earnings rose following hike in sales of Crude Oil and Refined Products.
Oando sold 17,445,256 barrels in 2021, up from 16,081,633 bbls reported in 2020. Also, the firm recorded 39 per cent rise in sales of refined products, selling 962,370 barrels, against the 694,653 barrels sold in 2020.
This led to the company earning N722.44 billion in revenue during the year in review, which is 51 per cent above the N477.07 billion turnover generated in 2020.
Read also:Investors left in dark, as Judge’s absence stalls Oando’s acquisition petition
Checks showed that Oando was able to escape the N140.67 billion loss of 2020, as the firm closed 2021 with N34.72 billion net profit.
Commenting on the results, the Group Chief Executive of Oando PLC, Wale Tinubu, 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, a strong revenue performance, coupled with the refund of a longstanding receivable contributed to a Net Profit of N34.7 billion.”
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