Rédaction Africa Links 24 with ANGONOTÍCIAS
Published on 2024-03-02 18:32:02
The operational revenues of Sonangol in 2023 decreased by 18% to USD 10.979 million compared to USD 13.404 million recorded in 2022, while operational costs also decreased by 3% to USD 7.806 million. Overall, operational results in 2023 shrank by 40% to USD 3.173 million, which is USD 2.159 million less than in 2022.
Therefore, earnings before taxes, interest, and amortization (EBITDA) decreased by USD 2.147 million to USD 3.185 million. The figures from Expansão are based on preliminary results presented last week at the annual meeting where the national oil company’s anniversary is celebrated.
At the 48th anniversary event of Sonangol, the chairman of the board of directors, Sebastião Martins, revealed that the results were penalized by the reduction in the price of oil in international markets. This is because in 2022, the average annual price of Angolan crude oil was USD 102, while last year it was USD 82, a decrease of almost 20%. However, the oil company ended up selling more barrels of oil than in 2022, increasing from 56,990,225 barrels to 66,775,296 in 2023.
The operational results were also affected by the decrease in the export of refined products by 15% to 878,101 metric tons, as well as the decrease in revenues from the refining, distribution, and sale of fuels.
Sonangol’s results would have been even worse if the company had not benefited from the increase in gasoline prices as part of the gradual reduction program of fuel subsidies, the slight decrease in operational costs, and the devaluation of the kwanza, as most of Sonangol’s revenue is in US dollars. Regarding fuels, according to Sebastião Martins, 221 thousand metric tons were produced last year, almost three times more than in 2022. “With gasoline production at the Luanda Refinery, the country managed to reduce import costs by about USD 242 million,” he said. On the other hand, pushing Sonangol’s expenses upwards, the country imported 3.5 million metric tons of fuels last year, representing a 13% increase compared to the previous period.
The company did not disclose how much it spent on fuel imports, but according to the financial area administrator, attending the event, Sonangol spent an average of around USD 2.5 billion in the last two years. He refrained from revealing how much of this amount is subsidized by the state. As for sales, wholesalers purchased 3.6 million metric tons, 2% more than in 2022, and sales to end customers (fuel stations) amounted to 1.0 million tons, 12% more than in 2022.
Last year, 4.89 million metric tons of refined products were provisioned, 9% more than in the previous period.
Sonangol has 330 operational refueling stations throughout the national territory, 10 fuel installations, nine ocean terminals, and holds a 65% market share of refined product distribution in Angola. Despite adverse conditions in the oil market, Sonangol ensures that it continued with its investment program, having applied USD 2.049 billion, 98% of which in the primary value chain.
Of the total, 84.4% was invested in the exploration and production segment, 5.4% in trading and shipping, 3.6% in the refining and petrochemical segment, 1.8% in distribution and marketing, 1.5% in the gas and renewable energy segment, while non-core businesses received a share of 1.9%.
According to the Sonangol chairman, in terms of strategy, the Angolan oil company is present in 35 concessions, nine of which as an operator, ensuring 18.5% of national production. In terms of operated production share, Sonangol represented only 2.05% at the end of 2023, up from 1.88% in 2022.
Read the original article (Portuguese) on Angonoticias
