Angola Sonangol’s net profit reaches 13 billion kwanzas

The net profit of the public National Fuel Society (Sonangol), in the year 2016, reached 13 billion kwanzas, revealed last Monday, in Luanda, the company’s Chief Executive Officer, Isabel dos Santos.

According to the Sonangol CEO, who was speaking at a press conference that served to present the company’s 2016 assessment report, the figures 13 billion kwanzas and 525 billion EBITDA (Earnings before interest, taxes, depreciation, and amortization) reflect a reversal of the trend of abrupt drop in the previous two years, thus solidifying the company’s recovery base.

The top manager stressed that results are fundamental for the company to re-take its position of driving force of the Angolan economy and generator of wealth for the country.

Another positive aspect, she revealed, is that despite all the conditioning factors, in 2016 it was possible to keep the crude oil production above the level of 1.7 million barrels per day, thus placing Angola as number one producer in the African continent.

Isabel dos Santos reminded also that the current board of Sonangol, inaugurated in June last year, took over at a moment of economic crisis facing the country, with the company dealing with a 60 per cent fall in its income, a high debt and low oil prices in the market.

In view of such framework, said the manager, the company initiated a transformation process and put into place measures that have enabled the board to know the reality of Sonangol at different levels and areas.

Therefore, she went on to explain, given the dimension of the Sonangol Group, as well as the results of studies that were conducted, it was necessary for the board to resort to external assistance, principally in four critical and fundamental areas, namely its finances, juridical area, human resources and strategy.

With such restructuration moves, she revealed, the company managed to increase its income with a programme dubbed Sonaplus, which yielded 1.1 billion US dollars, from which the company has effectively coffered USD 260 million.

In the same period, the company also executed a plan dubbed Sonalight, focused on reducing the company’s expenses up to 200 billion kwanzas (roughly USD 1.2 billion), of which USD 680 million are already approved figures.

During the year 2016, she disclosed, Sonangol achieved an effective saving of about USD 320 million.

“This was possible through the implementation of measures intended for improvements in the internal processes and control mechanisms, adjustments in the management and financial policies to the best international practices, review of investment models and strategies, competence and merit as the basis for decisions relating to human resources”, Isabel dos Santos explained.

As regards its social responsibility focus, she said, Sonangol made investments above the figure of AKZ 3.6 billion (USD 22 million) in projects in the fields of education, health and vocational training.

Source: Angop