Oando, the Nigerian integrated energy solutions provider led by oil tycoon Adewale Tinubu, achieved an impressive turnaround in its operations, resulting in a profit of N34.73 billion ($75.4 million) at the end of its 2021 fiscal year, which ended on December 31, 2021 —a stark contrast to the losses reported the previous year.

Despite production decreases due to shut-ins for repairs and maintenance and sabotage incidences at its facilities, the Nigerian energy group earned a substantial N34.73 billion ($75.4 million) in profit at the end of its 2021 fiscal year, representing a dramatic improvement from its loss of N140.67 billion ($305.6 million) the previous year.

Thanks to a 105 percent increase in realized average crude oil price from $34.21 per barrel to $70.12 per barrel as well as a 40 percent increase in natural gas price, the group’s revenue increased by a tremendous 51 percent, from N477.07 billion to N722.45 billion, during the period under review.

Adewale Tinubu, Group Chief Executive of Oando Plc, commented on the group’s 2021 performance, 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 percent increase in the average realized oil sale price, while a surge in militancy and sabotage across the Niger Delta resulted in a 40 percent decline in average hydrocarbon production compared to 2020.”

Tinubu added that despite the challenges, a strong revenue performance, coupled with the refund of a longstanding receivable, contributed to a net profit of N34.7 billion ($75.4 million), as the group continued to drive growth of its existing businesses, while also exploring creative solutions towards curbing the incessant pipeline sabotage incidences that continue to plague the local industry

Despite the rebound in the group’s earnings, its total assets declined from N1.39 trillion ($3.02 billion) to N998.05 billion ($2.17 billion), and retained losses expanded from N424.26 billion ($922 million) to N478.65 billion ($1.04 billion)

As we continue to drive the growth of our existing businesses whilst also exploring creative solutions towards curbing the incessant pipeline sabotage incidences that continue to plague our local industry, we are also committed to investing in climate-friendly and bankable energy solutions via Oando Clean Energy Limited, thus expanding our portfolio from oil and gas to include non-fossil energy solutions. We will continue to update our esteemed shareholders as progressive developments are made in the coming year,” Mr Tinubu added.