The state-owned oil company Sonangol reached in 2021 USD 2.1 billion, considered the highest result in the last seven years.
Compared to the previous period, the national oil company recorded a 152% growth in net profit.
According to the Account Report published Wednesday, to which Angop had access, the countable business volume was of USD 8.9 billion, thus representing a growth of 46% in relation to the previous financial year.
Also read: Angola partners with AFC
The countable Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was of 2.1 billion kwanzas which corresponds to USD 3.4 billion by representing a growth of 70% over the same period of the previous year.
The countable net profit rose to approximately USD 2.1 billion, a growth of 152% compared to 2020.
This net profit represents Sonangol Group´s best performance since 2014, when it was still the National Concessionaire.
The reached results enable the national oil company to maintain positive equity at USD 10.5 billion, as well as maintenance of the financial capacity to continue operations.
“In addition to our ability to quickly adapt ourselves to the new reality, it contributed to the achievement of the company´s positive results, the stabilization of operations along the primary value chain, which made it possible to meet the needs of domestic consumption and reverse the negative financial results recorded in 2020”, the report reinforces.
The oil company also points to the discontinuity of investment in non-nuclear businesses and shareholdings, the cost optimisation policy implemented and lastly, as well as the recovery of the barrel price, whose average in 2021 was around 70 dollars per barrel, compared to 40.71 dollars per barrel in 2020.
Also read: AfDB disburses 20pct of its Angola investment portfolio
The company also highlights the continuity of projects that had been suspended, the starting of new projects of utmost importance and based on relevant strategic partnerships in order to reach new sectors and other horizons, creating the basis so that in 2022, in addition to the intention to invest in projects that increase production capacity, there may also be invest in human capital – through the gradual reactivation of the staff training process which was restricted for some time.
According to the company, the year was marked by the pursuance of initiatives and projects, with greater emphasis on exploration and production, partial alienation of participating interests in oil blocks, aimed at strengthening its presence as an operator.
Among the projects, the Sonangol-Libongos drillship started operating on Block 15/06 and preparation of Sonangol-Quenguela for operation on Block 17; refining and petrochemicals; the installation of the New Platforming Unit at the Luanda Refinery, the increasing of the global internal production of refined products by 450,000 metric tons, and improving the quality of gasoline, taking into account environmental issues.
The company also highlights the launch of tenders for the establishment of the corporate structure for the Lobito Refinery, the continuation of construction of the first phase of Cabinda Refinery and establishment of the corporate structure for Soyo Refinery, to reverse the country´s high level of imports.
It emphasises the start of projects to build two photovoltaic plants in Namibe and Huila, in partnership with ENI and TotalEnergies, as well as the upgrading of the Cabinda gas plant and laying of the first stone of construction of phase two of the Falcão Project to receive, transport and distribute natural gas from the Angola LNG plant to the Soyo combined cycle power plant.
Regarding the area of trading & shipping, the Sonangol Account Report points out the beginning of the construction process of two Suezmax ships for the gradual renewal of the maritime fleet and approval of the Regional Expansion Plan, with a view to attracting business opportunities and strengthen the position of Sonangol as a benchmark company in Africa, the distribution and commercialisation, inauguration of the 4 de Fevereiro Airport jet-A1 pipeline linking the Boavista 5 Fuel Station to 4 de Fevereiro International Airport.
Also read: Angola keeps payments surplus balance
The Account Report also highlights the Puma Energy assets acquisition with Sonangol which now owns the Pumangol fuel terminal with an additional capacity of 300,000 m3, which reinforces the creation of strategic and security fuel reserves for the country.
Among the non-nuclear business, it includes the sale of 13 non-nuclear assets and holdings, allocated to the Privatisation Programme (PROPRIV), valued at about USD 37 million and boosting maritime and industrial training activities in Sumbe city of Cuanza Sul province.
In the corporate arena, its highlighted the launching of Sonangol Carbono Azul environmental project, in partnership with the Otchiva Association, a project that aims to protect mangrove forests in Luanda over an area of 147 hectares, allowing for the capture of 323,400 tons of carbon dioxide (CO2) to be offset, and the delivery of boats to the Ministry of Transport as a result of the recovering assets process from Sonangol China joint-venture (5 catamarans with capacity to carry 350 people).
Sonangol considers 2021 to have been a favourable year, despite the challenges, many objectives were achieved.
