Oando plc 2021 full-year pre-tax profits jump 133% on the back of net reversal of impairment of assets

Oando Plc has just released its audited results for the full year of 2021 showing pre-tax profits grew by 133.12% year on year, reaching N44.474 billion.  


Key highlights 2021 FY vs 2020 FY  

  • Revenue N803.460 billion +68.42% YoY  
  • Cost of sales N761.934 billion +74.50% YoY  
  • Gross Profit N41.526 billion +2.68% YoY  
  • Reversal of (impairment)/impairment of assets, net, N104.927 billion   +266.82% YoY 
  • Administrative expenses N106.367 billion +15.24% YoY  
  • Operating profit/(loss) N78.830 billion+206.04% YoY  
  • Net Finance cost N34.502 billion -42.74% YoY  
  • Profit for the year N32.859 billion +123.36% YoY  
  • Earnings per share N2.88 +130.32% YoY 
  • Cash and cash equivalent N27.877 billion +92.25%.  



Oando’s significant growth in pre-tax profit can be attributed to the reversal of impairment of non-current receivables and trade and other receivables amounting to N104.382 billion in 2021 FY. 

  • Also, the company reported a 68.42% growth in revenue, primarily driven by the sales of crude oil, which primarily contributed to the overall growth in revenue. 
  • However, the company experienced substantial growth in inventory cost and other directly attributable costs, leading to a year-on-year surge of 74.50% in the cost of sales, reaching a total of N761.934 billion.  Consequently, the growth in gross profit was moderated to a rate of 2.68%. 


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