Oando Targets Investments in Climate-Friendly Energy Solutions

By Dipo Olowookere

The chief executive of Oando Plc, Mr Wale Tinubu, has expressed the desire of the company to pump funds into clean energy as the world looks away from fossil fuels to save the climate.

Mr Tinubu, while commenting on the audited financial statements of the firm for 2021, also said efforts would be made to improve its upstream and trading businesses to maintain the recent profitability.

In the results filed to the Nigerian Exchange (NGX) Limited, Oando increased its turnover by 68 per cent to N803.5 billion from N477.1 billion in 2020, as it declared a post-tax profit of N32.9 billion, in contrast to the post-tax loss of N140.7 billion in the preceding year.

“Our audited full year 2021 financial statements are broadly in line with our earlier published Unaudited results in which we announced an increase in profitability driven by a strong revenue performance, a consequence of an 82 per cent increase in average realized oil sale price, coupled with the refund of long-standing receivable.

“Although a surge in militancy and sabotage activities across the Niger Delta negatively affected our operations during the reporting period, we have since seen progress in security initiatives and are consistently seeking innovative solutions to stabilize our oil and gas production,” Mr Tinubu said.

“Moving forward, we remain committed to driving growth within our upstream and trading businesses whilst simultaneously diversifying our portfolio by 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,” the businessman, who has a close relationship with President Bola Tinubu, stated.

In the period under review, the upstream business of the energy firm witnessed a decline in average production to 26,775 boe/day from 44,550 boe/day in 2020 due to shut-ins for repairs and maintenance and sabotage incidences at the facilities.

As for the downstream segment, Oando Trading sold about 17 million barrels of crude oil under various contracts with the Nigerian National Petroleum Company (NNPC) Limited and delivered 962,370 MT of refined products.

Business Post reports that the organisation posted an operating profit of N78.8 billion in 2021 versus the operating loss of N 74.3 billion as a result of higher revenue as well as a reversal of asset impairments totalling N104.9 billion.